Quote Originally Posted by Eaststand View Post
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Something I've always wondered.
I live fairly near to the Strand housing development just off Fishwives Causeway and I'm amazed at how many houses they're managing to build on that site.

What roughly is the profit margin for housebuilders like Persimmon, Wimpey etc for newly built houses.

Without giving away any detailed sensitive info would you be in a position to give a ballpark about the total costs for buying the land, building the jouses, then the final finishing touches like plastering, painting etc against the selling price.

GGTTH
To be honest I wouldn't know, I'm in construction rather than housebuilding. Companies I've worked for have had big name housebuilding divisions but never really been party to that info. They generally tend to be incredibly profitable in comparison to the construction side of business as that's large vale/fairly low margin.

The model was always that construction delivered turnover and cash flow which funded housing, particularly land acquisitions, and the housing delivered the large profits and dividends for shareholders.