- We achieved an immediate capital gain of 19% on commencement of this project in late 2014
Rental return (estimate – based on current market values)
- 2014 – $350 a week
- 2014 – $425,000
What did we learn from purchasing this property?
- Its possible to build new properties and make immediate capital gains
- Understand your market
- You can make money in regional areas
- Capital gains can be made in a flat market
- Find a builder you trust
- Work with your builder to find the right opportunity based on your investment goals
- Make sure you secure a fixed contract with your builder
- Build for your future tenants, not for yourself
- Build relationships with land developers, you may be surprised what they’ll do for you. The developer in this area gave us a $10,000 discount on our block of land based on his relationship with our builder
- Build a team of advisers (accountant, solicitor, mortgage broker, builder and quantity surveyor)
- Don’t let any body tell you you cant make it happen. If the banks say no, ask why, if your mortgage broker says no, find another one, if you need to make more money, find a way to make more money. This property has taught me there is always a way to get a deal over the line.