Land Purchase and House Construction. 1+1 = 2.2 to Hold for the Rental Market

​

When buying land from estate developers, I believe you should be first or last to purchase. My reasoning is that on first release the sites are often priced low to gain sales momentum and are subsequently priced higher. This is to ensure that prior buyers stick, to cover unforeseen costs, or just to capitalise on the sales success of earlier marketing. Then, at the end of the project, developers are keen to move the last product as that’s where all the profit sits. Constructing a four bed, two bath DLUG immediately after settlement; its barely been vacant a single day and continues to be a reliable cash flow rental home through our property management business.