“I was too weak to defend, so I attacked!” General Robert E. Lee talking about the battle of Chancellorsville.
But, here’s my rationale. I ran the numbers to build a house on one of these blocks and it came out to less than what it would cost to buy an existing home. Therefore, it seemed to me buying the block now would at least fix the land price. Could the land prices go down? Could happen. That’s always a risk.
But, what seems like an outrageous price today appears cheap tomorrow. That seems to be a good catchphrase for the Alice. For instance, many years ago, golf course lots were selling for about $30,000. Many people in town today remember. The ones who remember most clearly are the ones who didn’t buy. “Who in their right mind would pay $30,000 for one of those lots?” was the standard objection. Well, one of “those lots” sold a few years back for the handy sum of $360,000 plus! You couldn’t get a slice of golf course land today for under $300,000. If you could get it at that price you’d be very lucky. Grab it!
So, back to the new development. Large 1,400 square foot lots just south of town overlooking the MacDonnell Ranges. All yours for $182,000 each. The price seemed reasonable to me. And, with the long settlement time, I have visions of selling one at a small profit to help offset the cost of the other one. That was my thinking. We put money down on two blocks.
As of this writing, the titles have not been issued. Still waiting. But, that’s alright. Alice Springs land prices keep going up!
Anyway, it seemed like an easy and not too disruptive way to get back into the real estate market. A way to ease back in; not taking on too much. I had enough money in our line of credit to buy both blocks without a loan from the bank. So, funding wasn’t a problem. But, I’d have to be careful because I’d need to keep this money ready when the titles were issued. I’d only have 14 days to organize payment. Hopefully, by then finance would ease up and I could fund these lots with a bank loan. If not, then I’d just make due using my line of credit.
This was my first foray back into the real estate market after over a year of inactivity. Not a big or bold move. But, it got me started again. It wet my appetite. I was ready for more action.
Go on to read Too Weak to Defend, Part III.