Gentrification

[Dugg_Bobcat]

Hi all,

I did a quick search of the forum for the term .... "Gentrification".

Couldnt find anything ... strange? Maybe I spelt it wrong.

I was hoping to use this mechanism as the back-bone to my investing philosophy. I understand how to spot areas that have undergone gentrification after the fact .... but was hoping to pick up some knowledge about how to identify suburbs that are about to undergo gentrification.

I understand that rezoning to allow high density living (ie - allowing 2/3 dwellings on a big block) is one of the factors to spur gentrification along.

Q. Where does one find zoning information on the net, and what do all the zoning numbers mean. Do LGAs, State Governments or individuals drive the whole re-zoning beast.

Bit of a newbie question ... all help appreciated.

I was thinking of South Lake here in WA, currently heavily weighted towards state housing. Close to Perth and infrastructure. Nice suburbs around it. Big blocks.

What do other Perth-ites think ??

Dugg

 

[Blair007]

Hi There,

I live in South lake, I was lucky enough to get a larger block (1100sq, R20) so I have been able to retain the front and build on the back. I think that most parts of south lakes if not all are R20 with 650-800 sqm blocks so nothing subdividable. Can't see rezoning going through in the next few years either. Cockburn council has areas like Coolbellup on the agenda first.

As far as gentrification goes though I don't think rezoning is the only thing to look out for here. Infrastructure investment from governments and large companies like Woolworths, Coles etc generally tend to help clean up areas. South lakes is a pretty good location in this respect, If you look at the Gateway shopping centre and Train station area you will see lots of Apartment blocks, roadworks etc going on. Plus the fact they are upgrading the shopping centre. Also if you look up on the Council website I think they have some plans up there stating a few government bodies like the State police etc plan to move into some of the office space near the train station, this is also a good thing.

South lake has a lot of promise for the buy and hold investor IMO, not many people talk about this suburb. Good location, close to railway station and money being pumped into nearby areas.
I think there are better strategies than buy and hold investing though and I wouldn't be purchasing in south lakes in the hopes of rezoning.


Check Cockburn councils website for planning and zoning. or alternatively you can just call them up and they are able to tell you most stuff over the phone.
http://www.cockburn.wa.gov.au/


This link takes you the WAPC (western Australia planning commission), you will find a list of all the R-codes and the requirements for each one.
http://www.planning.wa.gov.au/637.asp

Cheers

 

[Of The Vultures]

Type this into google instead:
site: somersoft.com gentrification

 

[westminster]

Hi all,

I did a quick search of the forum for the term .... "Gentrification".

Couldnt find anything ... strange? Maybe I spelt it wrong.

I was hoping to use this mechanism as the back-bone to my investing philosophy. I understand how to spot areas that have undergone gentrification after the fact .... but was hoping to pick up some knowledge about how to identify suburbs that are about to undergo gentrification.

I understand that rezoning to allow high density living (ie - allowing 2/3 dwellings on a big block) is one of the factors to spur gentrification along.

Q. Where does one find zoning information on the net, and what do all the zoning numbers mean. Do LGAs, State Governments or individuals drive the whole re-zoning beast.

Bit of a newbie question ... all help appreciated.

I was thinking of South Lake here in WA, currently heavily weighted towards state housing. Close to Perth and infrastructure. Nice suburbs around it. Big blocks.

What do other Perth-ites think ??

Dugg

Welcome Dugg

I'm surprised that nothing came up as a lot of Perth people talk of it.
Pretty much all local councils are pretty upfront about proposed rezoning areas but you need to be aware that some rezoning plans can take years to come to fruition and with the council amalgamations some might change when that happens.

As part of gentrification there is:
- state housing sell offs (Homeswest will sell older stock to dilute their presence in a suburb and to fund triplexes of their own)
- higher density zoning around local activity centres (local shops)
- shopping centre upgrades with Macdonalds etc joining
- rezoning to bring new people into the suburb - typically first home buyers in many of these areas and investors
- local ammenity upgrades - rec centres, libraries, local pools

If someone (govt/big business) is willing to spend money on an area then it can be good to jump in and reap some rewards.

As to the zoning numbers. You need to read a handy document called the Residential Design Codes of WA and it explains them all neatly in a table. Be aware that Local Councils have the right to put their own conditions on these codes in the Local Planning documents and their rights are first, then the Rcodes document.

 

[PACE]

Hi Dugg

Interesting question. I too share the same philosophy however it always feels a little too late by the time I've identified hotspots, others have caught onto it and I wonder if property values already go up at the mere announcement of any infrastructure development going on in a particular area.

I hope that getting in before infrastructure/retail developments are completed still allows enough room for prices to grow even if you're a little delayed in jumping on board.

 

[Ideo]

The problem is people move to an area because it is the next big thing. They then want to stop anyone else moving in to the area, or any other restaurants or clubs or bars opening up.

Classic NIMBY behavior.

I recently managed to get approval for a new bar in an existing entertainment district - despite residents of apartment blocks nearby objecting to it because of "noise". You live above a nightclub. A small wine bar is not going to impact you.

 

[janglesey]

Great posts from Blair 007 and Westminster.