Making 5 acres cash-flow postive - North West Sydney

Hi Everyone,

I was thinking about buying 5 acres in north western Sydney and land banking.

The areas of interest are:
  • Riverstone
  • Oakville
  • Vineyard
  • Marsden Park
  • Schofields
  • Shanes Park

Ideally I don't want the investment to impact my standard of living (income), however I am unable to find a property where the rent from the household will offset the loan interest. In my situation I would have to borrow 80% @ 5% + other expenses.

What I would like to know is how I could make this property into a cash flow positive investment? What will the council let me build onto the property to achieve this?

A colleague from work suggested building one single building structure with multiple sheds and kitchenettes, then I could rent them out as small work sheds for local businesses...

What could I do to five acres to make cash?

Thanks
 
Land banking is pretty much always negative.

I doubt work sheds would work as you'd need permission from Council to carry out commercial business on there.

The only possibility I can think of is DIY horse agistment (this is where you supply a fenced area and owners come and look after horse) but there is usually a limit to the number of horses, you'd need to fence, provide water, insurance blah blah blah. In our area it's about $150 pw for DIY agistment per horse
 
Hi

WOW I thought that horse agistment was a lot cheaper than that.

Does anybody know what horse agistment rates are in Victoria?

Regards,

alicudi

Oops I take it back it was DIY for $65 per week.
I see the ads on Gumtree alicudi - maybe check out your area?
 
If it was just up the street, in Kemps Creek, I'd pay to be able to store a container or two there for storage.
 
Landbanking and postively geared rarely go hand in hand,

if they do, then chances are its a business, and if it were possible to make a profit, then it would be leased out to a person who wants to own/run a business anyway,

unfortunately, its one of those, you cant have your cake and eat it type of stituations
 
Landbanking and postively geared rarely go hand in hand,

if they do, then chances are its a business, and if it were possible to make a profit, then it would be leased out to a person who wants to own/run a business anyway,

unfortunately, its one of those, you cant have your cake and eat it type of stituations

I have some friends who 'land bank', few people, few sites across NSW and QLD.

They put things like a KFC and car wash on it ;)
 
I have some friends who 'land bank', few people, few sites across NSW and QLD.

They put things like a KFC and car wash on it ;)

I believe that the land banking aspect was part of the business model for drive-in movie businesses. Big piece of land on the edge of town: wait for the town to surround it, then develop.
 
I believe that the land banking aspect was part of the business model for drive-in movie businesses. Big piece of land on the edge of town: wait for the town to surround it, then develop.

Yeah, I've always thought that.

One of my mentors has a big block in inner-Sydney. Has a workshop on it, then cut a small slice of it out which is now a subway. Multiple income streams.

It is a development site for multi story apartments. He bought it on an option before he could afford it. Love that guy.

Have met a few more since with similar stories, some on this forum. :p
 
most of those suburbs fall under Blacktown council, and is unlikely you can build a fast food chain, petrol etc on the rural land.

most of these suburbs are under the urban growth precinct, and either released or rezoned. Released land 20,000m2 are typically over $2-3m mark, Rezoned land are over $3m. If you see one that is around $1m, it is likely in a flood prone site, awaiting for Council acquisition for open space or drainage.

in recent years, granny flat is allowed to be built on rural land. you can rent the main house, land ( for horse or vegetation) and granny flat separately to bring it to less CF-.

I've seen in Schofields/Rouse Hill where a 5 acre land purchased released or urban growth but not zoned for $1.8m and is sold for over $3m when it was rezoned in short span of 3 years.
 
Hi Everyone,

I was thinking about buying 5 acres in north western Sydney and land banking.

The areas of interest are:
  • Riverstone
  • Oakville
  • Vineyard
  • Marsden Park
  • Schofields
  • Shanes Park

Ideally I don't want the investment to impact my standard of living (income), however I am unable to find a property where the rent from the household will offset the loan interest. In my situation I would have to borrow 80% @ 5% + other expenses.

What I would like to know is how I could make this property into a cash flow positive investment? What will the council let me build onto the property to achieve this?

A colleague from work suggested building one single building structure with multiple sheds and kitchenettes, then I could rent them out as small work sheds for local businesses...

What could I do to five acres to make cash?

Thanks

assuming you are land banking then it the loan interest will be paid by you fully.

As for a rental property the rent will pay portion if not all of the interest and expenses,

do you see holding the land with you having significant cash?
 
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