VIC Land Banking in rural upcoming suburbs or buying in established suburbs with 1.5M

Greetings Friends,

Need some advice with examples to backup any claims, will really help me in making a good decision.

Have sold my parents property overseas, have approx. 1.5 M in cash. Would like to buy a property for that amount – wouldn’t want to borrow any more money.

Do I go for established suburbs like Thomastown, Fawkner or look at acreage in suburbs like Donnybrook, Lara, Mickleham or any other suburbs (was thinking Mernda but already prices have gone way too high) , the idea is to hold on to the land for few years, I am not too keen on rental returns. Thankyou

 

Hi there,

Holding onto land and then hoping it goes up without worrying about rental returns doesn't sound a great plan to be honest.
If your serviceability permits then with 1.5 M may be you can buy say 2 properties , one closer to CBD(10K or 12K radius) and other one a bit further out.

Cheers

 

It is apretty good idea to hold land for next 8 to 10 years.

The first advantage is that you will get cheaper land a d second, you can gain multifolds in next boom.

Lara and Mickleham are pretty good suburbs for this purpose as well. Both suburbs have there own pros and cons.

Mickleham.is a new suburb and north has huge land banks.

Lara is an established suburb, currently getting extended and the demand will always be there for good properties.

 

Thankyou Ashish, i agree here - that's the intention to hold it for that long. Can you think of any other suburbs apart from the ones i have asked. Or do you think Lara, Mickleham has a good opportunity. Mernda is already at its peak.

 

I have a property in thomastown in RGZ1, 650 sqms selling for 950K, i believe they have reached their potential and may see slower growth

 

Land banking in an environment where the government is looking to release land is a strategy that needs thought. For the amount you are looking at a house/s makes more sense to me, maybe even commercial property is worth a look.

 

How do you know where the Govt is looking to release a land? how do we come to know, are there any upcoming suburbs Gov Website where the Council or Govt proposes their thoughts?

Kindly explain your reasoning for House/s making more sense than land banking please.

 

The last two Federal budgets indicate that this is on their agenda. Last year's Federal budget in particular.

Land with houses are useful and more likely to maintain zoning. Land is a not currently useful and can lose zoning and value more easily.

Communities care about their houses and have more political sway. Communities care less about vacant land.

 

Can't think of much now unless you can find something cheaper around Wallan.
The market has peaked and you would have bought 50% to 100% below market value around 3-4 years back. You have to consider that you would be buying at the peak of the market.

YOu can also wait for next 6 months to see in which direction the market turns. Lara is still going up imho. I am not an expert though.
Regards