Hi All,
I'm hoping that I might tap a few wiser heads about the effects of a land release in a good semi-rural town area.
I have found a town which I would like to invest in ( good parameters and prospects) and have come across council's future plans for the area, including maps of proposed new land releases - land which has to date been classified as 'green zone' and nestled amongst the town layout. These plans show the release sequence - Stages 1a to 1s, Stage 2a to 2s etc.
Indications from development in the area suggest that these will be expensive estates with upmarket family housing, servicing those working on the fringes of outer Melbourne. It is a highly owner-occupier area with near zero vacancy rates.
Given that median prices in the older area of town are around $200-$240K, and that new estate housing typically has a median new-house price of $300-$350K -
Does the development of a ring of high-class estates around the town CBD automatically cause better capital growth around the lower-priced, town centre, and is this the best place to buy?
Should one look for a cheaper IP close to the first or second land releases - hoping to gain some momentum from a ripple effect?
Or does such a land release have the reverse effect - lower the value of housing in the area because land is now available for building - or does the difference in median prices between old housing and new housing act as a buffer, guaranteeing that the older style housing will still be in demand because it's 100K or so cheaper?
Thanks for your thoughts in advance.
Cheers
Fish
I'm hoping that I might tap a few wiser heads about the effects of a land release in a good semi-rural town area.
I have found a town which I would like to invest in ( good parameters and prospects) and have come across council's future plans for the area, including maps of proposed new land releases - land which has to date been classified as 'green zone' and nestled amongst the town layout. These plans show the release sequence - Stages 1a to 1s, Stage 2a to 2s etc.
Indications from development in the area suggest that these will be expensive estates with upmarket family housing, servicing those working on the fringes of outer Melbourne. It is a highly owner-occupier area with near zero vacancy rates.
Given that median prices in the older area of town are around $200-$240K, and that new estate housing typically has a median new-house price of $300-$350K -
Does the development of a ring of high-class estates around the town CBD automatically cause better capital growth around the lower-priced, town centre, and is this the best place to buy?
Should one look for a cheaper IP close to the first or second land releases - hoping to gain some momentum from a ripple effect?
Or does such a land release have the reverse effect - lower the value of housing in the area because land is now available for building - or does the difference in median prices between old housing and new housing act as a buffer, guaranteeing that the older style housing will still be in demand because it's 100K or so cheaper?
Thanks for your thoughts in advance.
Cheers
Fish