I have been researching a couple of areas for development over the past few months… head down bum up etc… what I’m finding is that the best deals come from those areas that can’t service the ubits or townhouses that you wish to build. ie -sewage, water treatment, etc etc…
I’m looking at a couple of areas on the increase at the moment and basing some decisions on future projections. Some deals are being looked at to buy and hold for approx 2 years when councils will have established enough sewage tracks or water availability. I base most desisions on the results of surrounding areas and the steady increase in industry in the area. (shops, schools, new gfactory…. jobs etc.)
Does anybody have any other prominent signs to look for when judging whether a desired area will flourish for development or positive gearing???[^]Sounds too much like guess work to me and hoping councils will develop sewerage pipes etc. Are you sure its only 2 yrs? These things can drag on alot adding to your holding costs.
isnt this like the tasmania post?
I rather know than not know, councils change their minds, and I dont fancy a fight in land and environment court.
Guess work… Yeah sometimes, if the risk is feesible. You’d never base your decision on the hope that council was going to do something to convenience you…
The example came from a place i looked at up the coast… 100% developable and subdevision already approved but only for a certain amount of sub-devides. Pending the completion of water-treatment and sewage lines the property was going to be able to be sub-devided another 12 ways.
I think I’m still; guessing with a lot of what I do but I belive doing it over and over again will strengthen my ability to decrease the risk. Good point[
]If you find a suitable lot and the vendor is not in a hurry to sell, you might consider securing a land option [contract] subject to the council implementing required utilities/infrastructure.
Negotiate a refundable deposit [held with a legal representative] and include a sunset clause whereby the contract terminates and deposit is refunded [+ bank interest] after x months.
Otherwise, visit the local city council and request a copy of their district plan, which should outline areas that will be re-zoned over an extended period [if any].
If the area of interest demonstrates an increase in commercial or high density zoning, then this is likely to be the preferential location for development.
— Michael
Cheers Michael, Options are definately the way to go when looking to seal a coupleof deals a t a time and are something I work with.
I’m talking with a council today, I’ll request a dstrict plan while I’m there
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