First Time Investor.
Had some savings. Thought of regional area investment.
Builder's brochure said 601 m2 land but while signing the contract, got to know that land size was 501m2. Builder is saying that it was a genuine mistaken mistakenly typed 601 in brochure.
Land price is still the same by the council. Build price and size is still the same.
Builder has excellent reviews.
Not sure if I should go ahead or not?
FWIW you're playing with fire investing in regional areas.
Said no one ever
Just noticed the pun…
Council has nothing to do with land price? Any investment is about return. Is the return good in the area/market?
Thats why conveyancing and everything is done prior. I paid for a strata report and then cancelled deal after finding out new levies coming.
As per agent, return is good. He said he does his research and using sqm research website.
Other existing properties are cheaper, quite old but bigger land. And this property is will be new, small land and will be built by end of 2023 or early 2024.
And this is a complete new estate coming up.
Step 1 of buying a house.
Never trust an agent.
It's their best interest to sell property, not help you make sound financial decisions.
Then how do you decide when you are a newbie and know nothing about investing?
You definitely don't consult the person trying to sell you the product.
You either do your own research.
Go to a financial advisor
Else if you're happy to throw money at someone akin to a car salesman then go for it.
Mining areas fluctuate wildly. In WA we've had developers spruik almost infinite gains followed by massive busts.
It's a rollercoaster and up to you if you want to get on for the ride. We had cases where people's homes went from $1.1 million to $400,000 in the space of 2 years.
But on the other hand your also get the opposite happen.
@Drakesy: Thank you Drakesy.
You share quite useful info.
For investing few thousand dollars and buying a property to get some returns, how much should an financial advisor would cost.
I asked my Dad and Grandfather.
I still made some dumb ‘investments’ but nothing catastrophic.
I still ask my Dad, though these days he is more likely to ask me.
And I chat with people who I respect and have similar goals and views to me.
I don’t chase the latest crypto or NFTs or pot stocks or whatever.
The easiest thing to remember is to buy low and sell high. Is the land you are looking at low?
Of course, there aren’t too many things low at the moment…
Pro tip: buy bigger land older property. Land appreciates, buildings depreciate.
Novices get suckered by selling agents who are paid big commissions by developer. Don't believe me, get another view - speak to the agents selling the old properties.
That do makes sense. Thank you
In regional areas with abundant land this is not so much a case. Plenty of people (particularly older ones) want to move into brand new low maintenance house vs a 100 year old building on a big lot with all the potential issues that entails.
i would rather take a risk on an older building than a newer building, my experience of new buildings has been that they are all the same low quality, white everything, pieces of crap that have no sound insulation and probably won't last nearly as long.
this isn't even considering the building supply shortage and cost increases (builder looks good now, but who knows if they will be out of business next week?)
go for older house with more land, you could always knock down the old house at some point in the future (though it would be a shame if there's nothing wrong with it) and build your own, and still have more land.
Pull out before it's too late.
Valuable life lesson that can apply to many interactions….
done.
Pulled out last night
I wouldn't sign unless they reduce the price by 1/6.
Is that even the correct maths?
100 (600-500)/600… 1/6th…
Really. It's close but it's not the same.
IANAM
If a builder can make a mistake on a brochure, do you think you can trust them enough to build your house according to spec?
I had the same feeling, that's why thought of asking suggestions here.
But still couldn't trust, so I didn't seal the deal.
Well what are other properties/land going for on a meterage rate?
FWIW you're playing with fire investing in regional areas. Yes you can make large gains but you can also make huge losses. Regional areas aren't as land constrained as cities.