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Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of BamboocowBamboocow
    Participant
    @bamboocow
    Join Date: 2011
    Post Count: 2
    October 12, 2011 - 1:13 am

    Hi All,

    I am currently weighing up future investing opportunities.
    The one at the top of the list at the moment is buying a block in a suburb current not too high on everyones wish list. Because despite it being close to all amenities, train stations, hospitals, parks, freeways and the CBD (~10kms), it currently contains a high amount of state housing and has been given a bad wrap for years. The government decided a while ago to spread out state housing amongst the suburbs and as such, in my opinion, the suburb will only get better in the coming years as state housing progressively leaves the area.

    So im thinking whilst land prices are still cheap (350k ish for ~750sqrm) and zoning is R40 there is a good potential to buy a block with existing house now, rent out for a few years, then subdivide when the suburb is more desireable and prices increase accordingly.
    Does this sound like a suitable option?

    Cheers.

    Profile photo of Blue Ridge HomesBlue Ridge Homes
    Participant
    @blue-ridge-homes
    Join Date: 2010
    Post Count: 32
    October 14, 2011 - 11:24 am

    Hi Bamboocow,
    You don't say which city but I'm guessing Perth (from the R40 zoning)?
    You could be onto something, or you could end up holding this (could be less than desirable tenants, if the area is) for longer than you intend.  What is going to change in the area to bring this suburb up; is there new infrastructure coming, jobs, push of prices into the area by neighbouring suburbs? 
    Perhaps look into Terry Ryder's 'Hotspotting' thoughts for the area…
    All the best
    Meg

    Profile photo of BamboocowBamboocow
    Participant
    @bamboocow
    Join Date: 2011
    Post Count: 2
    October 19, 2011 - 5:55 am

    Whoops, yep I meant Perth.

    The fact that state housing is moving out of the area, it is slowly bringing the suburb back to life. Money is being injected into the area and better tenents / owners are moving in.
    There is also talk of a light rail loop going through the area.

    Ill have a look for the info suggested.

    Thanks Meg.

    Cheers

    Profile photo of bjsaustbjsaust
    Participant
    @bjsaust
    Join Date: 2009
    Post Count: 141
    October 21, 2011 - 4:34 am

    Are you sure they're decreasing public housing in that suburb, and not just focusing elsewhere for new public housing?

    Profile photo of Ultra PropertyUltra Property
    Member
    @ultra-property
    Join Date: 2011
    Post Count: 54
    October 25, 2011 - 4:55 am

    If you can pick it up at a fair price than it good to buy property with a twist or add value. As you mention the property has development potential and could be worth more depending of the density allowable to be built.

    Just do your research for any possible restriction or issues that may come with the site.

Viewing 5 posts - 1 through 5 (of 5 total)

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