VIC new land estates in melbourne

Hi all,

I am looking for my first IP in Melbourne. I just started researching in buying something in a new estate, either land or a house and land package. I am looking in Melbourne west and North. Can some one help me in suggesting any new land estates preferably in early stages ( 1-3). When I see realestate or domain I can see only atleast two year old estates that are already in mid of their development stages.

Thanks!

 

HI Sasy,

I was about to suggest that you jump in the car and drive out to the estates of interest. But seeing you're from Sydney, the phone will be your best friend.

The H&L market is hot at the moment in outer Melb, many estates sell out their desirable blocks on the day of release. These deals don't even make it to the RE.com etc and land is already out to 2018 title dates in the high demand areas.

Once you pick the areas of interest, make time to go to the area and see whats happening in the market. Get a feel for the areas and speak to the land sales offices. Then you can compare land, sizes, location, price, existing and proposed infrastructure etc...

You're on the right track looking North and West

 

What are the desirable blocks, the ones near/boarding a park? Not closest to the freeway etc... Bigger size?? I see a people on here really loving the small blocks, I always thought they were the worst but turns out its good for build and sell

 

I'm seeing lots of investment activity around Rockbank, Wollert and Mernda. And Clyde North on the other side of Melbourne.

 

Speak to builders salespeople. They will know which land is being released when etc. a house and land package is still two contracts, the builder can't sell you the build without land so they are on top of what's going on. Presenting two contracts to a lender makes the finance easier as well. After you have put a holding deposit on the land/signed a contract it's easy enough to change the build contract if you want. Simple with the original builder, changing builders isn't impossible either, although perhaps losing the first builder soil test/engineering costs.

 

Hi Connor,

Thanks! yes it is tough looking at Meblourne sitting in Sydney. I heard about few land estates selling and that were not yet advertised in RE.

 

hi tobe, Thanks for this. yes builders sales people would be good source.

and, do you mean we can change the builder for a house and land package after signing the land if needed? I thought thats not possible

 

Hi Kate,

Thanks, I will research on those.

 

It's difficult, and you may lose the costs for soul test and engineering, but it's possible.

 

That's exactly what I did but only because I sell house and land packages from Sydney so I need to keep on top of what's happening where. Took me 6 days to visit majority of the estates in Melbourne.

@Sasy areas in the north and south east are in huge demand and prices are getting quite out of reach for many people. I would look at Werribee if I was you as the growth has been good but prices are still affordable compared to other areas. Wyndham Vale estates like Jubliee, Manor Lakes and Lollipop Hill would be another option. If Craigieburn was still affordable then that would be my number 1 area followed by Cranbourne North and Clyde North. For example in Berwick Waters a client of mine purchased a 400m2 lot with a 12.5m frontage for $265k in Dec 2016. The latest release early this month was from $295k for similar land with same size and dimensions. So a 30k increase in 3 months. If you consider a 352m2 land in Aston Craigieburn selling for $281k affordable then you can explore that option. In Aug 2016 a 400m2 land with a 12.5m frontage was selling for $256k. Latest release is from $312k. $56k increase in 7 months. That's the kind of growth a lot of Melbourne suburbs have had.

 

Louis cipher, chief soul tester.

 

Bridgefield Rockbank is releasing a new stage today for sale.

 

@sash might be able to help you as h&l is his home ground

 

A couple of related questions:
1) What does land going on "title" mean exactly? (and is it different in other states?)
2) Say you buy land and for whatever reason sell later without building (at a higher place hopefully). Would your profit not be subject to CGT, given it was never an income producing asset?

 

@gkp once posted a list of new estates in Truganina thread, he may have a big list of all the other areas too.
But you gotta go to Melbourne and Drive around the new suburbs, because most of them don't advertise on RE or Domain.
There are plenty of them around and new ones popping up every now and then.

 

Going on title means actual settlement when you or your bank pays full amount(minus initial deposit) to previous owner. That's when the title is transferred in your name. For new estates time difference between contract exchange and land settlement varies from couple of months to couple of years.

Profit is subject to CGT.

You may not be able to claim interest deductions because for that you have to show ATO your intention to build. Since selling land before build proves your intentions otherwise ATO may reject your claim for interest deduction unless you have strong reason to support your decision to sell.

 

Im lucky i secured one in lollypop as the same blocks are 15k higher in only a month im watching closely all the other developments around the same area and they are flying out the door.. as they are still affordable.. same thing happened in berwick and cranbourne north last few year but now prices in those suburbs have moved too much to jump in IMO

 

That entire western area is on the rise. I secured a block in late Jan. The same estate is now selling them 23k higher!! And you know what? Even at the increased prices, when you look at Werribee/Wyndham Vale, there is still value to be had.

 

Having worked in this space for a while, I'd suggest tempering your expectations of capital growth.

In any market stage two will have advertised prices higher than stage one. In a down or flat market developers can do this with rebates and other nefarious means.

Think about it, how can there be a shortage of supply if your waiting 18 months to 2 years for land release/titles? Because supply is managed by the developers. They don't have to wait until stage one is 'sold' before releasing stage two. All the stages get titled together usually.

There very well may be capital growth in new estates, but don't base your assumptions on what developers price their land at. Get a bank valuation which are only based on recent re sales prices.

Trouble is valuers won't do a val until just before titles now, so a little risky. Outer suburbs seem to be the first to take a hit in any price downturn.