iam looking to buy in a town with a population of around 20 000, PARTLY ( not just ) driven by the fact that a big developement company is building brand new properties there and i figured if i can pick up a bargain around the same area for less than half the price they are selling for, it shouldnt be a bad buy…
just wondering if there are any facts developers base their choice on where to buy land because all in all its not an area thats really booming because of mining or similar
i know the numbers have to stack up for the developers …price of land, return etc but they wouldnt choose an area that has no real growth perpective ? just because the numbers look good for them but they cant sell in the end
Most of the developers won't invest into areas with a population of less than 500,000. At least not the larger national groups. Not unless, as you say, there is some mining or resources type activity there that would attract a larger population increase than the norm. Ynotnow is correct, just because the numbers may look good means not a lot in the end if you haven't got, or can't get, buyers for the end product willing to pay the asking price. This again would be dependent on the activity in the region, but as you say, there is none in the area you're speaking of. So ultimately, not much point in buying land there unless you plan on building and living on it yourself.
good point matt thanks…..going to buy a cheap prop-house and land, not just land to build on,planning to hold on longterm, hopefully without to much outgoings and noticed av jennings developments around and not that its my problem but i cant for the hell of it ,figure out how av jennings is going to sell heaps of 450k properties in the same area houses are barely sold for less than half the price because there is nothing around to attract people to invest or move there ….the numbers wouldnt stack up for investors to go cashflow pos if you pay 450k for a house, let alone capital gain and i dont know what people would do re work in a small town if they look to move there , apart from retiring ….thats was prompted me to ask the question what developers generally base there choice of area on but i guess only av jennings could answer it and they are probably able to sell these properties with some shiny add…nothing against av jennings got no clue if they are good
Profit …
D
sure they are after profit and they probably bought the land cheap and didnt spend that much on developments, compared to what they are looking to achieve on sales but as i stated above ,from my point of view it must be pretty difficult to find buyers because there is no real incentive to buy 450k properties in that area…
from what i gather now, it doesnt matter to some developers where they buy as long as the land is cheap, they will always find someone to buy the overpriced shiny new houses
because when i first saw development company building in the area, i assumed that must be a pos. sign, they would only invest in an area, they consider to have rising demand for properties
" if you build it they will come ……." ?
maybe it is a retirement town.
As an example Warrnambool Victoria has low employment but is by the seaside and since 2000 has had people retiring to it.
The level of development has been amazing. a new home maker center and new housing estates being built.
in 2006 the population was around 28,500 mark and it is predicted to expand to 40,000 residents by 2030.All from retirees
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