Hey there folks,
Was wondering if anyone has any experience in investing in land in Victoria. Is it a worthwhile investment and what kind of returns can one expect?
Also which suburbs would you recommend to invest in?
Residential Land Investment in Victoria
Comments
residental
oh, ok not sure then, pretty hard market to pick. hopefully someone will come and give away some of their advice for you.
South east, north or west?
Looking into my crystal ball you could expect returns of minus 5% over the next few years.
You can't rent out residential land easily so you're relying on capital growth only.
Are you thinking a large block and then subdividing it into multiple little blocks for sale in the future? Or just holding onto one block of land for an extended period or time then selling it?
Related : What about agricultural land ?
An empty piece of land won't be returning anything while you're sitting in it.
Unless you're certain there's going to be worthwhile capital growth on a block of empty land, you're probably better off getting an old house on a large piece of land for a little more so you can at least rent out the house while you're waiting.
which suburbs
Realistically, you only have suburbs in the outer areas, maybe existing farms. This is a form of land banking. It's only really viable if you have sufficient capital to cover holding costs (since if the land earns no income, banks aren't going to lend you much money to buy it and you can't deduct any of the costs). It's also very speculative.
If you manage to find a vacant block closer to the CBD, then you're better off building something on it to earn an income.
commercial, agricultural or residential?