Jul 31, 2023 11:52 am
did you write this drunk?
How big is the development you're looking at doing? Is this just one or two blocks you’re buying as untitled from an estate developer that you are planning on building on yourself, or are you looking to buy a large parcel of land and wanting to build many many houses as a developer?
If it’s one/two blocks – I would typically warn you about the likelihood of the titles being delayed and as such the builders contracts expiring and you being slugged for a huge increase – but you as the builder will mitigate that somewhat (being that you’re not relying on another builder). However, the same idea applies – What will your costs be when the land finally titles?
If it’s a larger parcel, you sound like you’re not there yet. There are huge undertakings to be considered such as utilities, roads, ensuing that your waste pipes don’t inundate the existing infrastructure etc. Levy, fees, additional costs to council far outweigh just the costs of building a single home. Rather than banging on here, if this is the route you want to take, you need a much more knowledgeable team to start. You won’t likely find that here.
It doesn’t sound like you know what you want to do other than just the fantasy of making some money with limited spending. I would suggest you need a much firmer plan, some costings, and work out what is suitable for your finances with a relatively significant buffer included if yore going the untitled route.
Key in mind that while the land isn’t titled, your deposit sits there unutilised for significant period of time. As inflation carries on, that deposit become worth less over that time. Lost opportunity cost. Worst case scenario, the developer selling you the land has a sunsetting clause and you end up having parked money in deposit form for 12-24 month, then the developer claws back their land and gives you back your money that now is worth less than it was when you gave it to them. Think hard about this, do your maths and research, and seek (and pay) for proper professional advice, you will need it.
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