what happens

[tab]

hi all,

i have just found out that the area my olds live in is due for a major upgrade. It is an area that doesn't have many units (barely a few blocks up until a few years back) and now there is a proposal to build a 100 odd residential units with a group of specialty shops and a major supermarket.

i figure the area could well be in for some good growth and it makes me think of investing in the area.

id like to know peoples opinions- would it be better to get into one of the established unit blocks now, or wait and buy one of the new units in the development??

cheers
tab

 

[PeterC]

established blocks may decrease in value once new ones arrive due to new blocks increasing supply?

and new blocks priced at a premium due to being new?

if you think the area itself might have good growth due to this, then perhaps consider property in the area which isnt going to 'compete' with these new blocks? i.e. existing house?

 

[tab]

hi peter,

thanks for ur reply. yep i figure the older unit blocks will be less desirable but considering it is the eastern suburbs, a few minutes drive from the beach, transport, schools etc, thought it might add to the value of the suburb on top of the sydney ripple effect......houses here are a bit out of my price bracket. A 2 bedder up the road just sold for 835k!!!

 

[PeterC]

not sure how long it takes for changes like this to raise prices in the area, but if it takes a while after the new units are sold, then perhaps the best time would be to buy one of the older units once the new units are for sale (and less interest in the older ones).

of course you should determine whether this new development will increase the prices in the area, i wouldnt be banking the decision purely on it (you'd still want it to be a good decision regardless of what else is happening)