Land banking

[zenq]

I am interested in buying a large acreage (100 acres or so) in a growth corridor of a rapidly growing city. I would love to hear peoples ideas of pros and cons of this strategy, esp wrt investment structures.
Also welcome discussion of positive attributes: future development potential (how to assess which areas will likely be rezoned earliest)
up-coming improvements in the area (eg: transport, industry, schools etc.),
and what to do with land in meantime (leasing? farming?)
Thanks

 

[FrankGrimes]

Dural in Sydney is earmarked for sub-division in the next 15-20 years. However, entry level properties there are 1M + and really 2-3M + for something with substantial land content..

 

[Pete]

Welcome, zeng.

I can't offer any substantial advice, but my intuition tells me this is an excellent approach for creating serious future wealth.

Horses for courses, though - it depends on the investor. I reckon it would my most favoured future investment strategy. Others will go different paths.

I must preface my comments with the disclaimer that I have no specific experience in such matters,

1. for structure, it depends on your circumstances. Maybe owned by a company as trustee for a trust you control. However, I think this is a point for which I would recommend professional advice.
2. for ideas of what will happen in the future talk to local councils, state transport, main roads, etc

My experience in the past is that government departments plan some infrastructure decades in advance and freely discuss their plans.

One other point, if you're in FNQ, consider flooding.

regards,

 

[Brinkdude]

Hi Zenq


This was quite a good discussion on Land Banking - Peter Spann.

http://www.somersoft.com/forums/showthread.php?t=21137&highlight="land+Bank"+Spann


Regards