Should I sell or develop?

Discussion in 'Adding Value' started by drrkwng, 4th Jun, 2015.

  1. drrkwng

    drrkwng Member

    Joined:
    7th Mar, 2015
    Messages:
    13
    Location:
    Melbourne, Victoria
    Hi All,

    My parents own a piece of land in Taylors Hill. It is in a good location and is roughly 760 sqm.

    I have a 5/6 townhouse development underway (my first development project) but thought that i could learn alot from developing this block of land first and it would be a lot less risky. It could potentially help my parents maximize their profits also.

    My dilema is whether to sell or develop as there is a lot of demand in Taylors Hill at the moment. My concern is that in 1.5-2 years time (when the development is finished) interest rates could increase or the market slows down somehow.

    I have calculated the ROI to be much higher selling the land compared to developing. However I expect the knowledge gained from developing this block of land first would be invaluable for my next project.

    Keen to hear everyones thoughts.

    Cheers,

    Derrick
     
  2. Big Dave

    Big Dave Member

    Joined:
    7th Jan, 2010
    Messages:
    14
    Location:
    Perth, WA
    "I have calculated the ROI to be much higher selling the land compared to developing" - you've pretty much answered your own question.

    Why not find a dev site with a better ROI? That way you can gain experience and make money.