Food for thought...
- Thread starter DanielG
- Start date
Daniel
I would agree the cost of land in Australia is pushed up by local councils not allowing developers to develop and release land quickly and easily and all the while developers are paying interest on money owned for the land they are trying to develop.
Personally, I like to buy in new subdivisions wth kerb, guttering and wide roads instead of older narrower roads without kerb and guttering and adequate onstreet parking for visitors.
A few developers I know of are getting out of the game (not the ones whose family owned farms and then turned into residential lots as they obtained the land cheaply) as their money is tied up too long and every new development takes longer and longer to develop. In some instances developers do not make there profit until last few blocks are sold which can be many years after initial development started.
Can't exactly remember the costs council charge but I seem to remember it was about 40K per block on top of cost of purchasing land then development costs, holding costs, selling costs, land tax etc. Don't forget land has to be provided for parks and landscaping done.
Then there are the delays in getting subdivisions registered...
Regards
Sheryn
I would agree the cost of land in Australia is pushed up by local councils not allowing developers to develop and release land quickly and easily and all the while developers are paying interest on money owned for the land they are trying to develop.
Personally, I like to buy in new subdivisions wth kerb, guttering and wide roads instead of older narrower roads without kerb and guttering and adequate onstreet parking for visitors.
A few developers I know of are getting out of the game (not the ones whose family owned farms and then turned into residential lots as they obtained the land cheaply) as their money is tied up too long and every new development takes longer and longer to develop. In some instances developers do not make there profit until last few blocks are sold which can be many years after initial development started.
Can't exactly remember the costs council charge but I seem to remember it was about 40K per block on top of cost of purchasing land then development costs, holding costs, selling costs, land tax etc. Don't forget land has to be provided for parks and landscaping done.
Then there are the delays in getting subdivisions registered...
Regards
Sheryn
Interesting stuff Daniel, would be fantastic if i had some people at work who i could discuss this stuff at lunch with.
In my hunting grounds personally i don't think exsisting property is over priced (campbelltown and the surrounds), can get a decent house close to train/shops etc for 300k.
I think one of the main ones points having an effect on property values is credit drying up for our banks from their overseas sources
In my hunting grounds personally i don't think exsisting property is over priced (campbelltown and the surrounds), can get a decent house close to train/shops etc for 300k.
I think one of the main ones points having an effect on property values is credit drying up for our banks from their overseas sources
Ahh people like this guy overanalyse too much. Most markets do what markets do, go up and come down and go up and come down go up and come down. Right now it's the beginning of a downward momentum, but some of these guys talk like it's the end of the world. In a few years - probably 5 at most - it'll probably be an upward trend again
Every half a century we see something like a Japan, but it's ludicrous any country (including the US) is compared with Japan, where prices fetched up to $100k per sqm in Ginza and this was in the 80s.
Every half a century we see something like a Japan, but it's ludicrous any country (including the US) is compared with Japan, where prices fetched up to $100k per sqm in Ginza and this was in the 80s.
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