New House and Land package vs older lots

We are look at an IP in Ripley, Qld. Our first. A new house and land package 4 bed 392m2 land size. What are peoples thoughts on the area and value in the area? Have done research and there is planned infrastructure coming to the area but the question is when. Are there other areas to consider?

 

I think the train line will eventually be extended out there. A lot of army people family’s out there to rent. A lot of land to develop out there I wouldn’t buy there to far out even from Springfield.

 

For that kind of land size, how much are you paying for a new H&L package?

Personally I feel it's quite far from everything and as @gerege mentioned there are heaps of land available out there so there is no land scarcity. It'll probably take a while to see some decent CG.

"Planned" infrastructure without a date is called hope...unfortunately that is really not a strategy in my opinion.

I would suggest go as close to Brisbane CBD as possible and buy a house sitting on as big block of land as possible. Simple as that

Cheers,
David

 

I wouldnt touch it with a 10 foot pole. Actually make that 1000 foot pole.

 

When considering an IP, the first question I asked myself was:
Where will my tenants work?

Most renters want to live close to work. People will buy a PPOR in a desired location and put up with a long commute, but most tenants won’t.

So always investigate employment opportunities and public transport to get there, to attract a larger pool of tenants. For me, Ripley fails on both of these criteria.
Marg

 

You can buy half the distance to the CBD in other suburbs for around the same price. Makes no sense to buy in Ripley. And H&L package would imo only make a bad deal terrible.

May Ripley RIP.

 

Hi team,

For investors, house and land packages are usually a bad idea, for three reasons:

1) they are typically on the outskirts of cities where the infrastructure just hasn't arrived yet.
2) There isn't enough population demand in these areas, so you are effectively speculating; and
3) While the developers are involved and releasing the tranches, the prices are determined by the developer and not by the market. ie they usually rise initially artificially, and then flatten or drop for some years. Ie.if you buy into the first few releases you will feel like you are making money, but once it is all sold and the developers move on, the values often languish or flatten.

It is really another form of hot-spotting, and the newness of the construction is often very enticing. However this is for young families, not for investors.

Hope this helps.

John

 

There are some investors in this forum who have done extremely well with H&L stocks. But they choose their own builder, not the standard H&L package offered by volume builders. It is more to do with how you do it than just the product type imo.

 

Good point. Thank you Hieund85.