How to cost up value of plot

[Hass]

Good Afternoon guys,

 

We are looking to purchase a plot (west yorkshire area), around the halifax/hudds region.

What would be the best way to figure the best price to pay for the plot?

 

I have come across the 30% of value of property (once completed)

Other ways I have attempted to calculate is using approx £2000sqm (is this even realistic?) for a mid-higher end detached house?

Using all methods and if bearing in mind time for build and the headache 

 

Methods used

 

Value of end build e.g £800,000

 

Cost of 250sqm detached = £2000 x 250 = £500,000

If factoring in a 20% profit margin = =800,000 * 0.2 = £160.000

Cost of land must then be? = 800-500-160 = £140,000 ?
 

Is this correct? Am i missing something here?

What are current sqm build costs in this region (if anyone knows)

Thank you for your assistance in advance. 

[JohnMo]

Land prices vary hugely.

 

Location, views, plot size, are services there already, how long it's been on the market, does have outline planning or not.

 

Really wouldn't do a self build based on value when just completed. A well done self build will be way better than anything you can get on the open market - if it isn't don't bother, buy ready built.

[Alan Ambrose]

Depends on how much competition in your area, but here (in East Suffolk) it is effectively sales value of planned building (say, £4-4.5K per m^2. for a swish place) minus build cost (say, £3k per m^2).

 

That is, negating pretty much any profit you might make. It may be better in Yorkshire.

 

There's a bit of subtlety you can add e.g. stamp duty you won't have to pay for an equivalent property, price inflation between the time you buy the plot and the time the house is build.

 

But that's fiddling around the edges. Maybe look at any plots you see advertised in your area over the last 2 or 3 years. Check plot price vs. size of building with planning permission. Analyse.

[Bonner]

As @Alan Ambrose says, don’t expect to make any profit these days. Plots prices and build costs remain high with resale values generally uncertain. Of course it depends on the specific location and local supply vs. demand.