Howdy
So Having a discussion with a mate last night whose keen into property.
He's built a couple of houses now and plans to take this as his strategy instead of buy/hold.
He's working on a 50k in 50k out strategy and I assume 1 per year.
His figures are apparently quite conservative with the sale price.
Apart from 50K bieng not a whole lot for quite a bit of work what other problems is he likely to run into, things I can think of.
CGT
Reduced sale price if market tumbles.
Holding costs during construction/sale period.
Builder blow-out costs
It almost seems like a lot of work for minimal return.
So Having a discussion with a mate last night whose keen into property.
He's built a couple of houses now and plans to take this as his strategy instead of buy/hold.
He's working on a 50k in 50k out strategy and I assume 1 per year.
His figures are apparently quite conservative with the sale price.
Apart from 50K bieng not a whole lot for quite a bit of work what other problems is he likely to run into, things I can think of.
CGT
Reduced sale price if market tumbles.
Holding costs during construction/sale period.
Builder blow-out costs
It almost seems like a lot of work for minimal return.