NSW Land Banking in Western Sydney

I was doing my usual search for a PPOR when I came across this.

I've seen it alot in Riverstone, but this is the first time I have seen these lot for sale in Marsden Park.

Tempted to buy it, what are the pitfalls to watch out for?

216 Deleware road Marsden Park NSW 2765 - Residential Land for Sale #201438978 - realestate.com.au

 

No services are provided so there is a cost for a start.
15.25m total frontage - 7.625m each is fairly limiting for building.
Is the subdivision even approved? Or just proposed.
You might end up with one block with no services, would the purchase still be viable?

I'd want a lot of questions answered and my solicitor to read over the contract.

I've never looked at something like this, those are just things that sprung to mind.

 

They have been flogging those for years, I'm sure it will be approved one day but probably not for a decade or so

 

That particular lot you're looking at is located in the high flood risk area in Rivo. High Flood Risk = 1 in 100 years flood zone. You can check Blacktown Council maps with Flood Precinct layering to confirm. Deleware Rd is only 3 blocks away from the Eastern Creek.

Last year in March 2015 when Sydney had a 3/4 days of non-stop rain, Garfield Rd West was closed due to considerable flooding in Eastern Creek. And that's just from run-offs of storm water. In the event of actual flooding from Hawkesbury or Nepean River, this will be a lot worse.

There is a good reason why this land is cheap. Also no service and that particular area is underdeveloped at this stage.

 

Already enquired about these lots with Blacktown Council. They are in the process of planning the area with the State Gov but it is unlikely those said lots will be zoned for residential. It is located within a medium risk flood zone as it is close proximity to the river. The duty planner believes it will be zoned Conservation Lands.

 

Dont let that be you

 

Even with the flood overlays, we are still seeing lots of develpers trying to develop the land!!

 

Trying to develop the land even if flood affected is one thing, if the land isn't zoned by the State Govt to do so is a different story. This land falls within the Marsden Park North Growth Centre and as such planning will be detailed by State Govt.

 

Yes i know lol....i am just saying im surprised at how many developments are near flood areas in NWGC! Hoping their OSDs are adequate lol!

 

Yeah the entire area is surrounded by major riperian corridors, I guess money talks!

I've heard that even certain areas within SWGC are majorly affected by flooding and this has been negated in the planning. I wonder who is liable when entire new estates are underwater lol

 

Well im currently on the boundary to part of the NWGC and about 6 weeks ago, we had two major rainfall events and the road flooded - in the same place - both times - for days.

Currently they are just greenfield sites with as much permeabiliy as you could possibly get yet there will soon be a serious sea of one and two storey multi-dwelling housing developments going in that would literally be underwater and i am not sure its classified as 1:100yr flood zone but it did flood....twice in the space of two weeks!!

 

Just makes you think how overpriced these pieces of land actually are. One decent flooding occurrence and values will plummet, insurance will skyrocket. No amount of OSD can cater for land that should not be developed on.

 

As others have said; I'd avoid it.

I'm sure someone else on PChat mentioned ghis in another thread already, but the interesting thing about floodzones that have '1 in 100 year' flood risk, is that realistically; that risk will amplify as global warming and climate change continue to ramp up.

I.e. if you are holding property in a floodzone like that for say a 20 year buy-and-hold duration, then it is not inconcievable that you might face one (or even more) of these 1 in 100 year floods during your hold phase. Not only that, but you'll have to deal with those higher insurance premiums along the way.