New estates
- Thread starter nads
- Start date
Nads
I have heard of people doing this around Ballina, especially when it comes to any land that is near to the beach / has ocean views - ie. really good blocks of land.
I suppose a few things to be aware of are that you still have to pay:
- stamp duty on the purchase,
- interest on loans (if applicable), and
- council rates (in most cases as rates are tied to UCV).
So you have a series of expenses and, quite possibly, no income to offset them off against (tax issues).
Naturally you also have to take account of:
- easements, and
- planning laws (restrictions).
Both of which may affect the resale value of your piece of land.
MB
I have heard of people doing this around Ballina, especially when it comes to any land that is near to the beach / has ocean views - ie. really good blocks of land.
I suppose a few things to be aware of are that you still have to pay:
- stamp duty on the purchase,
- interest on loans (if applicable), and
- council rates (in most cases as rates are tied to UCV).
So you have a series of expenses and, quite possibly, no income to offset them off against (tax issues).
Naturally you also have to take account of:
- easements, and
- planning laws (restrictions).
Both of which may affect the resale value of your piece of land.
MB
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My 20yo daughter & a friend went 1/2s in a block at Wyee Point on Lake Macquarie in NSW. Bought it for $117k 18mnths or 2 yrs ago, & the block next door just sold for $280k. Wish we'd bought the street out!
They could afford the outflow of cash, as they both live @ home.
The -ve cashflow for a while is the down side.
They could afford the outflow of cash, as they both live @ home.
The -ve cashflow for a while is the down side.
Land banking is not a new concept, good money can be made, I've had success.
It's obviously more speculative and I'm sure there are horror stories of proposed freeways, schools etc not going ahead.
I'm bullish on coastal property and there are many examples of new estates opening up on both the north and south coasts or NSW where excellent capital growth is being reported.
good luck, tom
It's obviously more speculative and I'm sure there are horror stories of proposed freeways, schools etc not going ahead.
I'm bullish on coastal property and there are many examples of new estates opening up on both the north and south coasts or NSW where excellent capital growth is being reported.
good luck, tom
Hi Tom,
Yes coastal land would be a great option, I have thought about the same here in Victoria. It's too late for me to buy land in Torquay, which is at the start of the Great Ocean Rd and not far from Geelong/Melb. We have considered buying land over in Apollo Bay which is on the Great Ocean Rd, and is much further away from Melbourne. But coastal land is scarce, and very expensive too!
We have thought about buying land close to the coast, and using the block on our holidays to camp on, that way we are making some use of the land until we sell it.
Have you faced any obstacles buying coastal land? Do you buy in new estates or just any vacant block? What are the differences in terms of risk?
Yes coastal land would be a great option, I have thought about the same here in Victoria. It's too late for me to buy land in Torquay, which is at the start of the Great Ocean Rd and not far from Geelong/Melb. We have considered buying land over in Apollo Bay which is on the Great Ocean Rd, and is much further away from Melbourne. But coastal land is scarce, and very expensive too!
We have thought about buying land close to the coast, and using the block on our holidays to camp on, that way we are making some use of the land until we sell it.
Have you faced any obstacles buying coastal land? Do you buy in new estates or just any vacant block? What are the differences in terms of risk?
nads,
I currently have a block that has more then doubled in 13 months of ownership. It's an infill block, vacant with homes on either side, with this approach you get a feel for the street, nice surrounding homes can assist in your appreciation. With a new estate your going in sight unseen and there is the matter of scarcity, is it stage 1 of a multi stage release.
In all cases it is demand pushing up the price, that's why I like selective coastal areas, Bernard Salt in The Big Shift refers to the 'push from the bush' and the 'clamour for the coast'. I believe Australians will be clamouring for coastal property for some time to come. Apollo Bay is a great example of a 'Sea Change' town that has become very trendy to weekend in and retire to, why should this change in the next 10 years. If AB is out of your reach look for the next town in the ripple effect. Where are all the people going that can't afford AB.
Obstacles include the extra time it takes in finding the right property, we tend to include weekends camping up and down the coast with looking at real estate. Finance is also more difficult the more speculative your purchase.
I currently have a block that has more then doubled in 13 months of ownership. It's an infill block, vacant with homes on either side, with this approach you get a feel for the street, nice surrounding homes can assist in your appreciation. With a new estate your going in sight unseen and there is the matter of scarcity, is it stage 1 of a multi stage release.
In all cases it is demand pushing up the price, that's why I like selective coastal areas, Bernard Salt in The Big Shift refers to the 'push from the bush' and the 'clamour for the coast'. I believe Australians will be clamouring for coastal property for some time to come. Apollo Bay is a great example of a 'Sea Change' town that has become very trendy to weekend in and retire to, why should this change in the next 10 years. If AB is out of your reach look for the next town in the ripple effect. Where are all the people going that can't afford AB.
Obstacles include the extra time it takes in finding the right property, we tend to include weekends camping up and down the coast with looking at real estate. Finance is also more difficult the more speculative your purchase.
Thanks for the advice, Tom. How have you been able to overcome obstacles when trying to get the finance, since this is speculative investing?
What research do you do prior to buying the land? Who do you speak to and where do you get your info from?
We are new to investing, in fact we are only going to be buying our first PPOR next year. We will probably be in a position to buy our PPOR and also an IP, so we are looking at all options relating to IP's. My other half is keen on buying vacant blocks and then re-selling, to raise enough capital to keep investing, so that one day we can retire.
What research do you do prior to buying the land? Who do you speak to and where do you get your info from?
We are new to investing, in fact we are only going to be buying our first PPOR next year. We will probably be in a position to buy our PPOR and also an IP, so we are looking at all options relating to IP's. My other half is keen on buying vacant blocks and then re-selling, to raise enough capital to keep investing, so that one day we can retire.
Use a good mortgage broker, I can recommend Rolf Latham of ASAP Financial.
Research I can recommend includes The Big Shift, use it to determine where the population is moving too. Once you've found a municipality contact the local council/s and keep an eye on their Development Application notice board. Drive around and keep an eye on things. Realestate.com.au and local RE agents websites are great for looking at and comparing lots of property in a short period of time.
cheers,
Tom
Research I can recommend includes The Big Shift, use it to determine where the population is moving too. Once you've found a municipality contact the local council/s and keep an eye on their Development Application notice board. Drive around and keep an eye on things. Realestate.com.au and local RE agents websites are great for looking at and comparing lots of property in a short period of time.
cheers,
Tom
just go to existing succesfull land developments
talk to the rep on site, even call there head office
and ask where future
developments are going to be, time frame etc
if they know you are serious you will get a call
on larger developments you can secure the
car parks on a later stage that maybe released in
6 months time etc
you maybe able to sign an expression of interest
to secure block
talk to the rep on site, even call there head office
and ask where future
developments are going to be, time frame etc
if they know you are serious you will get a call
on larger developments you can secure the
car parks on a later stage that maybe released in
6 months time etc
you maybe able to sign an expression of interest
to secure block
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