Post to Facebook on 19/8/2018 at 11:15 PM
Commenting on “Why buy land? Why stay with parents?”
https://www.facebook.com/groups/626923500981964/permalink/738490573158589/
Some builders advertised they can build for less than $200k on vacant land. However, that's not the end of spending money once a house is built on it.
Council rate is charged based on Capital Improved Value (CIV), which is Site Value (SV) plus the improved value on the land plus house and any outbuilding. That means the ongoing expenses will be higher. Then there are other charges involved.
Land price is generally less than the price of land plus a building, that means one needs less money for the deposit for the la d.
When a property, be it house, unit or apartment, increases in value, it is the land that goes up in value. Land appreciates in value but a house depreciates, and in general, the increase gives a better return than putting the money in the bank to earn interest which goes towards the taxable income.
If the land is situated in a location where you like to live in, then you can build on it once you have saved enough for the next phase.
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For many young people, just be nice to their parents and stay with them until they are ready to move on. Why move out just for the so called freedom? That freedom can really burn a hole in their pocket.
If one has no parents to latch on, share with friends in rent a simple house or no frill apartment. Landlords are small business people, and more outgoing they pay for the property, will eventually pass on to the tenant.
Life style and how soon one wants to free from mortgage is a choice. Many Gen Y and Millennial can tough it out, but they choose to live up to "free" life. With longer life expectancy, and insufficient savings, Gen Y and Millennial will end up with nothing including a roof over their heads.
Land is financial security!
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PS. In order to stop land hoarding by investors, many new releases have restriction that buildings must be erected at a given period of time.
Do make sure that the land you buy has no requirement to build on the land at a given period, otherwise you will be forced to build or sell while you are ready to do so.
Since everyone financial situation is different, do consult a financial advisor should you require to include property investment in your investment portfolio.
Thank you for reading.
Commenting on “Why buy land? Why stay with parents?”
https://www.facebook.com/groups/626923500981964/permalink/738490573158589/
Some builders advertised they can build for less than $200k on vacant land. However, that's not the end of spending money once a house is built on it.
Council rate is charged based on Capital Improved Value (CIV), which is Site Value (SV) plus the improved value on the land plus house and any outbuilding. That means the ongoing expenses will be higher. Then there are other charges involved.
Land price is generally less than the price of land plus a building, that means one needs less money for the deposit for the la d.
When a property, be it house, unit or apartment, increases in value, it is the land that goes up in value. Land appreciates in value but a house depreciates, and in general, the increase gives a better return than putting the money in the bank to earn interest which goes towards the taxable income.
If the land is situated in a location where you like to live in, then you can build on it once you have saved enough for the next phase.
-----------------------------------------------------------
For many young people, just be nice to their parents and stay with them until they are ready to move on. Why move out just for the so called freedom? That freedom can really burn a hole in their pocket.
If one has no parents to latch on, share with friends in rent a simple house or no frill apartment. Landlords are small business people, and more outgoing they pay for the property, will eventually pass on to the tenant.
Life style and how soon one wants to free from mortgage is a choice. Many Gen Y and Millennial can tough it out, but they choose to live up to "free" life. With longer life expectancy, and insufficient savings, Gen Y and Millennial will end up with nothing including a roof over their heads.
Land is financial security!
-----------------------------------------------------------
PS. In order to stop land hoarding by investors, many new releases have restriction that buildings must be erected at a given period of time.
Do make sure that the land you buy has no requirement to build on the land at a given period, otherwise you will be forced to build or sell while you are ready to do so.
Since everyone financial situation is different, do consult a financial advisor should you require to include property investment in your investment portfolio.
Thank you for reading.
