New Estates
- Thread starter alexm
- Start date
And the supply & demand equation is around the wrong way for wealth building CG.
Interesting thoughts guys (and this does correlate to some of my thoughts).
Talking to some developers, there are allot of investors buying land/houses in new estates. I guess there's money to be made in all areas of real estate.
I'm curious to know where people are buying (in these estates).
Talking to some developers, there are allot of investors buying land/houses in new estates. I guess there's money to be made in all areas of real estate.
I'm curious to know where people are buying (in these estates).
For the developers there's money to be made.. I tell you one thing, they wont be marketing to the more experienced investors.
+1
Just because one is a property investor, doesn't mean one is a good property investor.
There's money to be made if you own 20 acres and get it rezoned resi and then subdivide and sell otherwise you may as well bet on the horses. New housing estates are a BAD investment relative to other RE
Are these the developers that are selling the product?
Doesn't surprise me if they're saying there is demand from everyone.
As above generally from my experience new estates come with premiem, which happens because the developers want to get paid, so do the developers sales agent. More hands in the jar.
My experience (again generally speaking) from clients buying into new estates are PPOR wanting brand new house, shiny kitchen with all the mods. Not investors and if they are investors I wouldn't call them savvy investors, more your mum and dad type investor.
Reminds me of some friends telling me how they are getting on the property ladder by buying a house and land package. Expensive way to get on it
I don't totally agree....
It depends on what you buy.
I bought in a local estate some 5 or so years ago , as one of the 1st people to buy there.
We bought a car park (650sqm) - located behind the sales centre.
Pro's -
Made an 80k profit minus stamp duty and selling costs.
Developer paid us 7% "rental" - so effectively it cost us nothing.
No water rates.
Cons -
Difficult to finance - we bought at the height of the GFC and banks were nervous. Thanks to MikeF... We did get a loan through CBA for around 70% of the price.
My only regret with this block is that we didn't keep it for 1 more year - it probably went up around another 80k in that period of time !
Story 2 -
I have a workmate who bought in Kellyville 2 years ago. His land registered 2 months ago...and is valued 50% higher than the purchase price - he had a neighbour who took profit with the same sized block and orientation...
It depends on what you buy.
I bought in a local estate some 5 or so years ago , as one of the 1st people to buy there.
We bought a car park (650sqm) - located behind the sales centre.
Pro's -
Made an 80k profit minus stamp duty and selling costs.
Developer paid us 7% "rental" - so effectively it cost us nothing.
No water rates.
Cons -
Difficult to finance - we bought at the height of the GFC and banks were nervous. Thanks to MikeF... We did get a loan through CBA for around 70% of the price.
My only regret with this block is that we didn't keep it for 1 more year - it probably went up around another 80k in that period of time !
Story 2 -
I have a workmate who bought in Kellyville 2 years ago. His land registered 2 months ago...and is valued 50% higher than the purchase price - he had a neighbour who took profit with the same sized block and orientation...
What do we class as a new estate?
Is it only land which has been recently cleared eg:stages 1 and 2 or is it stage 19-20 of on ongoing estate which is concluding its development after say 15 years. Both have different levels of supply which will impact future growth.
A new H&L package in any of these two situations or looking to buy something that was built within 5 years.
Are we talking land only, with an interest to do the build yourself as an ownerbuilder on the last block in the street or are there 20 spec builders waiting to put up 300 houses?
I only mention these scenarios as I'm interested in seeing if I'm a drongo or not?
I did feel pretty good seeing a word on here that I haven't heard since my father used it some 25 years ago. (I miss those days)
The suburb profile is far more important to me now than it was years ago, looking for employment generators has become a large slice of what I like in an area, and is my strategy more CF or CG focused? It depends on what I'm trying to achieve, my risk profile has changed in the last 10 years with the addition of wife and kids.
Is it only land which has been recently cleared eg:stages 1 and 2 or is it stage 19-20 of on ongoing estate which is concluding its development after say 15 years. Both have different levels of supply which will impact future growth.
A new H&L package in any of these two situations or looking to buy something that was built within 5 years.
Are we talking land only, with an interest to do the build yourself as an ownerbuilder on the last block in the street or are there 20 spec builders waiting to put up 300 houses?
I only mention these scenarios as I'm interested in seeing if I'm a drongo or not?
I did feel pretty good seeing a word on here that I haven't heard since my father used it some 25 years ago. (I miss those days) The suburb profile is far more important to me now than it was years ago, looking for employment generators has become a large slice of what I like in an area, and is my strategy more CF or CG focused? It depends on what I'm trying to achieve, my risk profile has changed in the last 10 years with the addition of wife and kids.
New developments are in Roachedale Estates developed by the Aveo Group. All sold up in releases from stages 1 to 3 with estates community centre already built and functional.
Pro: community utilities and architectural code. All spec houses. Executive and premium housing - the ones overseas Chinese and others from third world countries with money would buy. Large lots available. Close to Sunnybank and eateries. High ground. Commuter public car park and public busing to the CBD. New supermarket and shopping facilities planned nearby for the area.
Con: pricey with land at $1k per sq m. Starting house and land would easily be above $0.5- 0.6m. Some villa, double storey and looking like dual occupancy under a shared roof may be priced lower. Not so much for PI but for PPOR. Body corporate minimum about $2k per year. IMO, probably not one for the xenophobic or Anglophile!
Disclaimer: I have a stake!
Pro: community utilities and architectural code. All spec houses. Executive and premium housing - the ones overseas Chinese and others from third world countries with money would buy. Large lots available. Close to Sunnybank and eateries. High ground. Commuter public car park and public busing to the CBD. New supermarket and shopping facilities planned nearby for the area.
Con: pricey with land at $1k per sq m. Starting house and land would easily be above $0.5- 0.6m. Some villa, double storey and looking like dual occupancy under a shared roof may be priced lower. Not so much for PI but for PPOR. Body corporate minimum about $2k per year. IMO, probably not one for the xenophobic or Anglophile!
Disclaimer: I have a stake!
Similar threads
