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From: Simon St John
Howdy all!
Over the past months I have been interested in the odd post where reference had been made to building as opposed to buying.
The "I'd never build" camp often say something like "I'd never build because I'd rather buy something without the builders profit margin" etc.
But surely we buy property on the assumption, that (granted with varying degrees) it will grow each year.
On this reasoning, at what point does the original builders' profit magically disappear and make the property a good buy?
I would have thought It's always there and that the value of a property is made up of cost + profit margin + capital growth.
I know that there must be an answer but I've searched the forum for one and racked my (small and now tired) brain - so any help most appreciated!
Cheers,
Simon
Howdy all!
Over the past months I have been interested in the odd post where reference had been made to building as opposed to buying.
The "I'd never build" camp often say something like "I'd never build because I'd rather buy something without the builders profit margin" etc.
But surely we buy property on the assumption, that (granted with varying degrees) it will grow each year.
On this reasoning, at what point does the original builders' profit magically disappear and make the property a good buy?
I would have thought It's always there and that the value of a property is made up of cost + profit margin + capital growth.
I know that there must be an answer but I've searched the forum for one and racked my (small and now tired) brain - so any help most appreciated!
Cheers,
Simon
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