Buying land

eddddy

secla said:

A 1 acre plot has gone up recently near me with planning for 4 houses on it for 650k

FWIW, it varies a lot - but the old "rule of thumb" is to add up the potential selling price of the houses, then aim to....

• Spend 1/3rd buying the land
• Spend 1/3rd on building costs
• Keep 1/3rd as profit

So maybe the calculation in this case is:

4 houses to sell @ £490k each, so total selling value = £1.96m

1/3rd for the land =~ £650k
1/3rd for the building cost =~ £650k
Leaving a profit of £650k for the developer

yorkiechick

Thanks for all the tips, I'll do some sleuthing. Seems odd that nothing could be built there, knowing the level of housing that's gone up in the surrounding areas.
There's still potential for other uses for us so we're still looking into it. 
I know self-building is ridiculously expensive at the moment but it's something we've been saving everything we can to be able to do at some point. We're in a good position where we are at the moment so we're in no rush to do anything but wait it out