Long term Dev/Subdivision ~450k options

Hi All,

Posted a fairly detailed message a few weeks back with no bites. I've narrowed further and looking to gain info on where long term development or subdivision strategy in makes sense over 15-20 year horizon.

Budget $450k with $10k left over to tidy up and improve cosmetically.

Large land (800m2+) with house rented out being neutral or close to hold, opportunity for demographics to change, smaller land lots over time, rezoning etc.

NSW (Newcastle however stretching for budget, Wallsend?)
VIC (Corio, Norlane, lower end - yield may not be strong enough)


SEQ :

Ipswich areas (Bellbird park, Redbank plains, Ripley) new Railway & infrastructure, strong pop growth, demographics changing to under 35's age bracket - long term view 2030.

Scarborough - close to water, Kippa Ring railway, not much schools.

RedCliffe close to water, hospitals, (think I am priced out here for >800+m2)

Logan - Haven't done too much research here, my preference is higher OO activity

Anywhere else I can consider or research would be great.

 

Hi @BCR
What are you trying to achieve with this?
Equity? if yes, how much?

What sort of Rental Yields you are looking at?
i believe there still are options giving similar returns and far less headache then you are willing to take.

Regards

 

MeadowBrook, Loganlea (Red zone in Loganlea where the zoning allows townhouses) Beenleigh, are all close to the gold coast express stations. If you considered the milk run stops there are many more suburbs.

 

Thanks for the reply,

Aim is for long term hold for subdivision/development in 15-20 years to assist with debt reduction. May sell off a couple of blocks or complete small town house development selling off one or two and keeping the other,

I am not looking for significant immediate equity (would be nice if I could)

Rather looking for areas that will significantly increase housing density through population increase, younger professionals moving in, infrastructure development etc.Think North west Sydney 15 years ago vs now.

I would be comfortable with gross yields at or above 5%. Ultimately if a great block came about I am willing to build a GF to assist with CF.

Have also been looking around Rocklea with cheap price points close to CBD......

I prefer buying close to water hence Redcliffe & Scarborough which may need the GF built etc.

Geelong is on the radar as well, quite limited to what I can buy though from a block size v yield perspective.

 

Try armstrong creek and area within 15 min drive to it. The area seems like a gold mine considering next 10 years time.

 

Mate if you could stretch your budget I’d be going long jetty (central coast). Gentrifying rapidly with heaps of trendy shops, cafes, gyms popping up and massive blocks with correct zoning. It’s money for jam.

 

Not sure how big development your looking for
Logan has some opportunities
Loganlea and Beenleigh have sites a tad above your budget that are zoned for apartments with a yield of about 3-4%. Main issue with these sites are under currrent market values it is not really that profitable (what happens is 15-20 years may change that)

For something smaller
Marsden has a lot of sub dividable blocks within ure budget and yield between 4-5%. Again not that profitable today but doesnt require a major jump in price to become profitable

 

Have been doing some research around Armstrongs Creek, there seems to be a whole lot of undeveloped land towards that way? Closest Train station and shopping centre is Waurn ponds?

I generally find myself working outside of my budget, this time however I am working to 450k max! I'd go 470k if the yield reduced holding costs further. Are there areas nearby worth researching where infill/rezoning may flow on?

Thanks, this will be my first for 2-4 Townhouse max. Build at the back keep the front etc.. Haven't read too much on Marsden in general however will have a look. Have done a fair bit of reading around Ipswich opportunities and long term council planning which I think may provide some longer term options and a low buy in price.. Or something like a Redcliff corner block where I could KDRB in 15 years being closer to CBD, water, hospitals etc.

 

You target the right area