Hi CD's

Has anybody done this? Buying a home as an investment has become too expensive and so thinking of land which I intend to keep for sometime and sell it once it has grown in value. Thank you.

Investing in land is a good idea. Only caveat is that you cannot have land financed / or avail mortgage. You have to either use your LOC or Cash to purchase land.

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Growing Old Is Mandatory ..Growing UP is Optional

As far as I know, this is not a good idea. But it depends on the size of the land.

As you are aware, Canada has good demand for sub divisions only. But the best areas are already taken by the Italian. What is left is the 1 or 2 grounds. No one really likes it unless it is a prime property, sold for making some expensive bungalow to a rich client.

Only in India,Plots sell and are a good investments. In Canada, you need around 2 or 3 acres minimum. If you can form a consortum, it is good. Subdivisions help to optimize the cost of infrastructre and building building apart from making it more saleble.

Other options are agriculture lands outside the city, mining leases in the far north and the like.

If you are in the construction industry, buying a dilapidated building, renovating it and selling is a very good and safe option. The return is phenominal.

I have worked in real estate firms in Canada before . For subdivision house in the KW area, this was their break up :

COst of land - 25% of the house cost.
House building cost - 50% of the sale price of the house
Marketing cost - 3% of the sale price of the house.
Permit / design fees - 1 % of the sale price of the house.
Profit by the builder and overheads - 12% of the sale price of the house.
Utilities - 3% of the sale price of the house
Infrastructure - I forget but around 6% I would think.

Murali

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I am a Gents and not a Ladies.

Thanks for replies CD's.
Even though I have a full time job in construction supervision, I don't have any experience regarding buying, renovating and flipping. And besides, I will need a lot of capital that not only covers the purchase of property, 20% down, Mortgage, land transfer tax, property tax, utilities, but also enough to cover the renovation needs. For this to happen, I believe I have to buy low and sell high in an in-demand neighborhood. GTA is out of the question as far as I know as there is no room for renovation and flipping due to already existing high cost of purchase of even extremely debilitated homes. So high that it takes bidding without any conditions to even qualify looking at these properties. In short, I think it is for seasoned flippers with high capital sitting with them that allows them high risk taking.
As a plan B, buying a under-construction condo (2 bedroom) and flipping it after building registration is something I am considering. The reason for this is because of what I understand (which again could be misconceived). I understand that one has to pay sale price plus HST. Do 5% down and do 20% before condo gets occupancy and I am ready to take the keys to the apartment. And finally wait for the building to be registered before I sell it. Also the reason I feel a bit relaxed in the Plan B is because I believe I have ample time before I would have gradually made 20% down. CD Pundits, please correct me if I am wrong in any of the above assumptions.
Some corner of my mind tells me I should give plan A a try with what ever money I could get, but I dont have a neighborhood market research plan that may show me non GTA property growth chances. CD's please advise.

It will go a long way if you do find out what it is that a Property Buyer is looking for when he wants to enter into a transaction. You have yourself explained the same in your PLAN 'B'., as to what they are. So, is it Plan B or could it be Plan A which you conveniently modified it into one! and called it some thing else.

You being in the construction Industry what I will mention here will become redundant to you after I post it here.

Some time back I mentioned over the CD forum that there are people who walk around with sophisticated software and find out what they can accomplish in the GTA area by buying homes and improving upon them and how they have accomplished the same with a lot of ease as a GROUP. It consists of a Lawyer, an accountant an builder and a Banker and I can even put you in touch with a promoter who is in the USA who does this for a living.

Instead of me writing about it, please watch and get to know more about it. Also contact them for additional details if you so desire, or even attend one and pay for it, the next time it is open to you to attend and get the complete details directly from them.

Hope this helps.


FH.
Two from the CD group went over and learnt how to do it in the USA. Anyone knows who they are and where they are now??!!

https://www.youtube.com/watch?v=eKHynlvztj8

The Video shows the building of a single storey house in 7 days, it is the ultimate green solution to keep the house cool in summer and warm in winter.
https://www.youtube.com/watch?v=QhMAbqyZ8rw

https://www.youtube.com/watch?v=C8tWIIbkrSk

SCAMS..

https://www.youtube.com/watch?v=OVR9IjJcymA

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Quote:

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Originally posted by BAsh

Thanks for replies CD's.
Even though I have a full time job in construction supervision, I don't have any experience regarding buying, renovating and flipping. And besides, I will need a lot of capital that not only covers the purchase of property, 20% down, Mortgage, land transfer tax, property tax, utilities, but also enough to cover the renovation needs. For this to happen, I believe I have to buy low and sell high in an in-demand neighborhood. GTA is out of the question as far as I know as there is no room for renovation and flipping due to already existing high cost of purchase of even extremely debilitated homes. So high that it takes bidding without any conditions to even qualify looking at these properties. In short, I think it is for seasoned flippers with high capital sitting with them that allows them high risk taking.
As a plan B, buying a under-construction condo (2 bedroom) and flipping it after building registration is something I am considering. The reason for this is because of what I understand (which again could be misconceived). I understand that one has to pay sale price plus HST. Do 5% down and do 20% before condo gets occupancy and I am ready to take the keys to the apartment. And finally wait for the building to be registered before I sell it. Also the reason I feel a bit relaxed in the Plan B is because I believe I have ample time before I would have gradually made 20% down. CD Pundits, please correct me if I am wrong in any of the above assumptions.
Some corner of my mind tells me I should give plan A a try with what ever money I could get, but I dont have a neighborhood market research plan that may show me non GTA property growth chances. CD's please advise.

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Hello OP,
Just came across this post and curious which plan did you take A or B ?

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MK

ANY TAKERS.

I was on a project a few years ago. It got shelved. Later on I met an old buddy who did exactly as the plan was designed to accomplish. But the building part of it was left to each individual and if we were to proceed, the details that we had are similar to what you see below. The previous Prefab builders have priced themselves out of this world and so, I am leaving them out of the picture.

There are other competitors who are starting up other block houses and they all need to get priced as per individual needs.

The one we had planned were... : TEN foot Ceiling, Open concept, with walk out basement 1600-2000 Sq.Ft. Main Floor area. (When completed pretty near doubles in size) with TWO car Garage paved Driveway for 4 Vehicles. Cost of lot plus your sweat equity and with completely occupy-able home for $280K 5 years ago. (Inflation has caught up)

Currently it will be ECO Friendly, Yr. 2050 compliant. Geo Thermal Heating. Solar panel Li-Ion Battery back up. You just pay for the garbage pick up with city Taxes.

Good Luck.

FH.
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There are newer systems available on the market. Some from China for half the price.


http://www.kijiji.ca/v-land-for-sale/mississauga-peel-region/95-acres-farm-land-with-3500-sqft-upgraded-house-for-sale-in-cal/1250295955?enableSearchNavigationFlag=true

http://www.lanefab.com/lanefabbuild-prefab-systems/

http://www.ecohome.net/guide/slab-grade-foundation-basement

http://build.bonestructure.ca/custom-home-design-landing2?gclid=CMiuw4zpp9ACFUIaaQod5BEB1w

http://www.nuformdirect.com/