Hi Vesuprop,
One of the key differences between CBD and regional property is the cost of building to land value. For example a small old run down cottage in Toowong, Bris might cost say $600K and only $100K-$150 of that might be building value. Contrasted with say a regional town where of $320K only $120K might be land value. Pro's and cons again to both situations. Although we hold quite a number of properties in regional areas (both Qld and Vic) and there is definately money to be made with lower entry costs we don't currently have any projects underway in regional - are looking at some both in Gympie and elsewhere. Our time is spent at the moment in blue chip areas of Brisbane both for our own and client developments. The land to total value of the properties varies depending on the type of development yet as an example one of them would be about 35% land value to build value. If you are buying an existing, old property that needs work then obviously the land component will be higher as opposed to a quality new home that has its footprint over the bulk of the land.
One of the key differences between CBD and regional property is the cost of building to land value. For example a small old run down cottage in Toowong, Bris might cost say $600K and only $100K-$150 of that might be building value. Contrasted with say a regional town where of $320K only $120K might be land value. Pro's and cons again to both situations. Although we hold quite a number of properties in regional areas (both Qld and Vic) and there is definately money to be made with lower entry costs we don't currently have any projects underway in regional - are looking at some both in Gympie and elsewhere. Our time is spent at the moment in blue chip areas of Brisbane both for our own and client developments. The land to total value of the properties varies depending on the type of development yet as an example one of them would be about 35% land value to build value. If you are buying an existing, old property that needs work then obviously the land component will be higher as opposed to a quality new home that has its footprint over the bulk of the land.
