Hello
Apologies if this is not the right forum to ask.
Basically, I have put down a deposit for land and signed the contract. The settlement is approximately one year away. Will be building our first home on this land.
Now, I have some amount left (originally saved to purchase a house to move in but could not afford the one we liked in current market so went for a land instead and buying us some time) enough to put in 10% deposit for another block of land.
What I was wondering and need some advice on
- will it be a good strategy to go for a 2nd block of land which will have settlement about the
same amount of time away. Kind of from investment perspective with a hope that the land
value will increase (the current trend for the area I'm considering is up) and sell it before or
after settlement. Obviously the intention is to get some extra cash to put towards the building
cost of the house on the 1st block.
I'm completely new and was wondering is this something doable. The amount I have now (~40k)
will sit in bank account and will probably get about 1k in one year time so was thinking if the above can be done. If so what are the risks?
Here are some numbers if that helps.
1st block - 320k - paid 32k as deposit - building cost ~300k (approx.)
2nd block - 250k - can pay 25k now
Income 130k (single earner), a family with my wife and a daughter.
40k at hand now (after deposit on 1st block)
Thought about keeping both land but don't think will be able to secure finance hence thought of selling during or after settlement.
thanks in advance