Who buys these sorts of development sites?

[TMNT]

There is a site on Dandenong Road Oakley

730sqm, Plans permits for 3 town houses, asking $900k

thats $300k per site,

Construction, lets say $200k turnkey, which brings it up to $500k per dwelling

Brand new townhouses selling for anywhere around the $550k mark (ie $500+GST), some in the high $500s, ie ($540k+GST)

at the $550k ($500+GST) mark,
the net profit is a big fat ZERO, and i havent included any holding costs,

who on earth buys these sorts of sites???? seriously

im struggling to find an answer

 

[Aaron_C]

730sqm, Plans permits for 3 town houses, asking $900k

We'll see if it sells. I wouldn't buy it for that price if that's the right feaso - although I think your estimate on the sale price of the final product is a bit low as they would be at least 230 sqm.

 

[Lou Reed]

Location,transport,links,amenities etc etc,that's why CG is a factor rather than the short term loss...Have you seen how fast these things sell?

New devos across from chad as an Eg.

Horses for courses but i predict the developers are gypsies lol and who has the last laugh?.