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NSW Price due to new Sub divisions?

Discussion in 'Where to Buy' started by Rison, 14th Aug, 2015.

  1. Rison

    Rison Member

    Joined:
    24th Jul, 2015
    Posts:
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    Location:
    Sydney, NSW
    Hi All,

    Long time lurker of SS and have recently moved over to PC. I am now in the position to look at buying my first property as a PPOR for the first few years and then possibly changing it to IP in 3-5 years.

    I am looking on the Central Coast (I will be working up that way for a few years at least) and more specifically around the Tuggerah area. I found a property that we like and are inspecting it tomorrow. I signed up to Planning alerts and last night got an email of a brand new sub division with 9 houses directly next to it. The company that is doing it looks to be well funded etc so I think that these will definitely be going ahead.

    My question is will something like this affect the value of the property? The Property I am looking at is still fairly new and was built around 2010 I believe. Also I was also wondering if it is normal to contact the developers at such early stage and inquire about the property. Would a developer give up information like price, plan details etc if a prospective buyer contacted them so early?

    There is also a few large subdivisions (100+ Lots) in the very early stage just a few minutes away is this likely to affect the price too?

    This will be my first property purchase so just wanting to do as much research etc as possible.

    Cheers,
    Matt
     
  2. Scott No Mates

    Scott No Mates Well-Known Member

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    Location:
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    Small one will have no noticeable effect. Larger one will probably bump prices upwards
     
  3. Rison

    Rison Member

    Joined:
    24th Jul, 2015
    Posts:
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    Location:
    Sydney, NSW
    Thanks for your reply,

    I would be interested to hear why you think that the Larger developments will bump the price? There is quite a few of them going to be completing in the next 1-3 years and worry about an over supply.

    Cheers,
    Matt
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
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    Location:
    Sydney or NSW or Australia
    New land releases are rarely cheaper than previous releases unless the location is much worse or the blocks are noticibly smaller.

    So H&L packages on new releases will generally be more expensive than existing stock.
     
  5. Rison

    Rison Member

    Joined:
    24th Jul, 2015
    Posts:
    6
    Location:
    Sydney, NSW
    Thanks, I thought that might be the case.

    Does anyone have any experience about contacting a developer at an early stage?

    Matt