- SanParticipant@santnairJoin Date: 2016Post Count: 36
A company has floated shares for a 30 acre land bought 3 km away from new proposed Western Sydney Airport. There are 2800 shares with each share costing $5k and minimum required investment for $50K. The company’s plan is buy and hold for 5-8 years and then sell. The directors keeping 40 shares as profit and no other thing in prospectus.
What do you think of this? Is it a good opportunity? Have anyone invested in such investments?
SanBennyModerator@bennyJoin Date: 2002Post Count: 1,304
My initial reaction was “WHO would want to live 3Km from a major airport?” Of course, that was a kneejerk reaction from a residential property investor.
A better thought would be to consider commercial rather than residential – i.e. sell the land to a hotel chain, to an industry for warehousing, a rental car company, etc, etc…..
Having got that off my chest, I can’t help any more – but I hope others swing by who may have been involved in landbanking in other situations. Good question btw,
BennyJaxonParticipant@jaxonaJoin Date: 2014Post Count: 271
30 acres = 120,000m2
2800 x $5000 = 14mil
$116 per square meter
=$81,000 for an 700m2 block.
this investment has no return bar the perceived return upon sale. but does seem cheap depending on the location of the land and a variety of things.
my simple answer is the Warren buffett, which boils down to investing in things that go up in value, but more importantly invest in things with on going returns.
your essentially buying dirt, now yes it can and will go up, but it returns nothing for the next ??years??
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