Industrial unserviced land

Hello all.

Came across an unserviced industrial land. Are there any benefits or disadvantages buying this? Why will someone choose to buy this or not buy this?

 

No immediate tax deduction as the property doesn't earn an income.

If there's demand, possibly erect a chainwire fence to stop dumping of rubbish & get a transport company to park their trucks on it.

 

Imagine the maintenance costs
(lack of)

 

Am guessing it is just land tax, rates and fire service levy costs to be worried about?

 

rent to the trucks?

 

is this waiting for rezoning to residential and hope a developer buys it of you?

 

I used to have a tenant paying $50k for 1 parking space.

 

I have a block like this. Owned for 14 years now and just used to park trucks earthmoving equipment as well as lots of heavy industrial materials. Tenant has put in probably close to 50k worth of gravel as well.

Could be developed but I don't see any real advantage at present.

 

Does this type of land appreciates much? What are the holding costs that I should be aware of?

Thanks.

 

Land rates, water rates, probably land tax.

If it doesn't have proper fencing (mesh and barbed wire) you will struggle to lease it, same applies if it isn't hard compacted ground, most would want a water connection (and possibly sewer) and possibly power so connecting these would add to your cost base.

I know of one being splitoff at the moment, owner is clearing the site, hard fill compacting it and fencing it at their own cost and giving the tenant the first 6 months free (on a 3 year lease) just to get someone in, and they will run at a loss for most of this initial lease.....

If the access/road out the front bitumen kerb and drainage?
If not it is likely classed as a "private" road, and should council ever want to bitumen kerb and drain it the adjoining land owners will get an invoice for their portion.

 

Yes, the land will appreciate and it's all about the lease terms.

 

Surprising how much demand there is for this!