Oh and should've also said
Eight McDonalds. Gee, no wonder there's some many chubbies around.
Eight McDonalds. Gee, no wonder there's some many chubbies around.
Where Bunnings builds, I buy.
- Thread starter Gordon Gekko
- Start date
Historically, I always followed Woolies and I suppose Bunnings would be the same.....
I have my own criteria that includes food shops in the equation...
http://users.tpg.com.au/kisseys/Criteria Sheet.doc
I have my own criteria that includes food shops in the equation...
http://users.tpg.com.au/kisseys/Criteria Sheet.doc
Get in before the bunnings stores are opening and the other homes should get cleaned up because of the new availability of materiels, ie paint, fencing so you would have a value add process going on in the local areas as well as renters, there is about 100 staff at these outlets, and the local councils, add stop lights , roundabouts, etc,
Great thinking
Great thinking
http://www.bunnings.com.au/discover-our-stores_new-store-openings.aspx
this may help those contributing to this thread
this may help those contributing to this thread
http://www.bunnings.com.au/discover-our-stores_new-store-openings.aspx
this may help those contributing to this thread
Sure does great link for those with money ATM,
well done Belu
The world expert on this is the late Sam Walton, founder of Walmart, the world's biggest retailer.
In the 1960s/70s he used a light plane to scout out real estate for his Walmart Stores, buying dirt-cheap vacant land on the outskirts of towns. Suburban sprawl now means there is a Walmart near most Americans.
In the 1960s/70s he used a light plane to scout out real estate for his Walmart Stores, buying dirt-cheap vacant land on the outskirts of towns. Suburban sprawl now means there is a Walmart near most Americans.
I'd rather be following Woolworths, they have been cloning Walmart for decades.
As soon as large residential land blocks are released, they're out there looking for a location. But i would keep an eye on openings in small towns with no chain supermarket. Should be easy to research the effect.
And btw Sam Walton:Made in America is one of my fav of the >500 books I've read.
If you run a business, specially retail, it's a must.
And don't forget chapter 7 of Wealth Magic
As soon as large residential land blocks are released, they're out there looking for a location. But i would keep an eye on openings in small towns with no chain supermarket. Should be easy to research the effect.
And btw Sam Walton:Made in America is one of my fav of the >500 books I've read.
If you run a business, specially retail, it's a must.
And don't forget chapter 7 of Wealth Magic
Whilst I see Woolies etc as a valid strategy, if you were using this strategy I'd be more inclined to follow the destination centres. eg. Cinemas like I mentioned (check out Marion, Norwood etc in SA), or off the top of my head Westfield's, Officeworks and Bunnings to a degree I agree as well etc. A Woolies supermarket isn't exactly the same as a WalMart store.
They'll put Woolies everywhere, wherever they're building new suburbs or infills - they have them within 5km's of each other and often less, so not really as good an indicator in my view. Big W may be the better one to watch in this regard, requires larger catchment etc.
(PS I'm referring to areas within capital cities, not a rural town that's getting it's first Woolies - that would be quite a good indicator I assume)
They'll put Woolies everywhere, wherever they're building new suburbs or infills - they have them within 5km's of each other and often less, so not really as good an indicator in my view. Big W may be the better one to watch in this regard, requires larger catchment etc.
(PS I'm referring to areas within capital cities, not a rural town that's getting it's first Woolies - that would be quite a good indicator I assume)
That's all good and fine for people whose strategies are more on the fringe outer suburbs area.
What about for people who like inner/middle suburbs? Will new higher end businesses (David Jones, Fitness First etc) opening shops there be a good indicator that the area is moving up in term of demographic so the potential is good? I have a friend who was in finance dept of FF and she said they put a significant amount of research each area to make sure that they can get good ROI before opening new gyms.
What about for people who like inner/middle suburbs? Will new higher end businesses (David Jones, Fitness First etc) opening shops there be a good indicator that the area is moving up in term of demographic so the potential is good? I have a friend who was in finance dept of FF and she said they put a significant amount of research each area to make sure that they can get good ROI before opening new gyms.
We think alike Piston, I've read that as well.
Walmart was advising Woolworths in the 1990s, there have been rumors for a long time the Walmart will but Woolworths.
These a new Woolworths at Plainland, between Brisbane & Toowoomba. Looks like its in the middle of nowhere until you see all the new acreage housing estates being built west of Brisbane
New Ikea is going to open in St Peters, Sydney. Supposed to be the biggest in the southern hemisphere (which is the dud hemisphere, admittedly).
My wife loves Ikea.
The place will be a 10 minute drive away.
It's enough to make me move away.
Scott
My wife loves Ikea.
The place will be a 10 minute drive away.
It's enough to make me move away.
Scott
That's pretty much what I was referring to with cinemas Willfong. In hindsight it's easy to say an area was always going to do well eg. Norwood in Adelaide. But people couldn't see it back then. Low and behold Hoyts put in a 6 cinema complex back in about 1992ish (?). Norwood has been gentrifying further and further as each year progresses.
This is an exact example of where Woolies know what they are doing. Even before the Plainland/Hatton Vale subdivisions, there were plenty of people around there. By the time Woolies opened was too late. We were looking at the acreages and in retrospect we should have bought...
Great idea. I guess the same applies to McDonalds. McDonalds, Bunnings and other chanins do a lot of demographic work before committing to a particular area. Places they go to rarely fail. If only we knew where they were next going to build.....
An link is made here between population growth and capital growth which may apply for certain types of investment but not necessarily for all.
While sharply declining population of a country town is a bad sign for the investor with property in the area, the reverse, ie a sharply increasing population in a fringe suburban area is not necessarily a good sign of exceptional capital growth (unless blocks are selling quickly and you own the next parcel along the highway).
Imagine if you were a scalper outside a footy game. One game is being held in a small stadium of 1000 but there are 4000 people outside waiting. Another game is being held in a large stadium of 10000 but there are 5000 people outside. The first would likely return the highest profits as there is much more demand than supply.
High-prestige suburbs often do not have high population growth (as they are fully developed) but they still have heaps of people outside the gates wanting to live there. Hence they're like the small stadium/large crowd above.
If you have a big lot of land near an outer growth area, it probably doesn't matter much the composition of the growth. Rather the most important thing is that its happening. The decisions of McDonalds, etc to develop there are clearly beneficial to getting a market.
But for established houses in established suburbs it might be different. Instead of raw numbers you're thinking more about composition and trying to profit from same.
Slightly inland from here there's a whole heap of fast food joints (plus a mega hardware and large pub) clustered around a major intersection. Buying a commercial property around there might indeed be smart.
But that area is remote from the beach, the train, supermarket and most other services. All these services are nearer the beach where there are NO McDonalds, KFCs etc. There's plenty of food places but it's all cafes and independent eateries.
For the growth prospects of an established home, the second option would be the better choice, and this has indeed proved to be the case, even if the housing stock is a bit older on average.
Some types of land development might just require population growth within a given catchment area. A big chain, no matter the demographics of the clientele is good, as it indicates likely population growth - purely a numbers game - bums in the door, on seats and decent conversion rates.
But if you're trying to chart the gentrification of a suburb and cash in on the increasing demand (but not necessarily an increasing population) then more 'upmarket' services like high-end cafes, clothiers and bookshops, service industries for the time-poor, yuppie health food shops, exotic homeware & furniture etc might be better indicators. And to make room for these, the closing down of salvage yards, op-shops, payday lenders, two dollar shops, etc might indicate the area is moving up.
So if this is your market a Maccas moving in isn't necessarily be good news.
Gentrification, yes. That sounds great. Beachside value-investments like Frankston & Seaford come to mind here. The final approval from the Premier's office means that the Marina will be built for sure (the progressive mayor expects construction to start as early as this year) and that will attract a different sort of resident. As the area improves, a wealthier class of resident will move in and this may well be the gentrification you refer to.
