Pondering our options and talking things over with the family - my dad has been playing around with the idea of buying land and putting a "ready built" house on it, rather than buying a "second hand" house.
His theory is that you could but a plot big enough for 2 houses, put one up and then sell it, and then use the profit to put the second one up and sell that (or rent them out - which is actually my preferred option).
Hes done some basic figures - which look healthy - but I was wondering what we need to think about here.
Surely if this was a good option - you would all be doing it?
Pros seem to be that that you dont pay someone elses profit, except on the land, and if you hold - you can depreciate at a higher rate.
The biggest con I can see is that you pay interest on a loan without any rent coming in - but if you buy a ready made house to "plonk on" Im thinking you could delay settlemnt on the land till you were ready to move the house on.
Is this a completely daft idea?
Cheers
Hxxx
His theory is that you could but a plot big enough for 2 houses, put one up and then sell it, and then use the profit to put the second one up and sell that (or rent them out - which is actually my preferred option).
Hes done some basic figures - which look healthy - but I was wondering what we need to think about here.
Surely if this was a good option - you would all be doing it?
Pros seem to be that that you dont pay someone elses profit, except on the land, and if you hold - you can depreciate at a higher rate.
The biggest con I can see is that you pay interest on a loan without any rent coming in - but if you buy a ready made house to "plonk on" Im thinking you could delay settlemnt on the land till you were ready to move the house on.
Is this a completely daft idea?
Cheers
Hxxx
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