Which is more viable

[Yvonne Rogers]

Hello

With housing prices inflated at this time is it best to buy as cheap as possible and renovate? Or purchase land that has existing planning permission for a build? 

Thanks in advance

[Jacob St. Martin]

Hello Yvonne, 

The answer to this question depends on your goals and skills. If you have a background in developing or construction AND are willing to wait 2 years before you really start making profit then development is probably the way to go as you will likely build more equity and might have better cash flow. However, if you do not have both of those things I would not recommended. There are a lot more moving pieces when it comes to developing that when renovating a preexisting house. You probably want to have a decent net worth or other substantial income source before you start developing because there are more things that can go wrong and you wouldn't want this one deal to tank you. 

I hope this is helpful!