If you own a block of land in one of the 23 unsewered towns between inverloch and wilson prom (vic coast) it is most likey that your block has dropped in value from around 100k to abt 6k (yes 95pct drop) in the last 1 week.
councli will no longer allow you to build a house on vacant blocks due to the problems with septic tanks and soil degredation in the area. the only way around it is to build a town sewer which could take years..
this just shows the market has many forces outside the underlying supply/demand fundamentals.
ouch!
OUCH!!!!
Man, those poor investors are really in the crapper aren’t they?????
Jo
jo – especially due this is the fastest growing area in victoria. huge growth last 4 years and heaps of speculators buying blocks keeping them for a year and then off loading them. blocks in these areas were wrth 20k 4 years ago. last week they were wrth 100k and now back to vrtually nothing.
what a rollercoaster. if you have an established house however you will probably see the value go up due to decreased supply..
On the other side though, what does it mean for already established blocks?
Surely supply v. demand must force those prices higher!
Interesting… great post aussierogue!
Steve McKnight
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yep established houses cld go up in value. Phew for me!!! i just got in!
btw if youve got some excess cashflow maybe a time to buy some cheap blocks and hold on to them until town sewerage is up and running. its not a matter of ‘if’ but ‘when’. def gonna happen mostly due to environmental concerns
I really feel sorry for those investors in the lurch, I can’t imagine buying properties at $100K and having my dreams destroyed like that….[glum2]
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