Why Land Availability Doesn't Affect Property Prices Like You Might Think!

🛑 Why Land Availability Doesn't Affect Property Prices Like You Might Think!
InvestorKit - Buyers Agency Of The Year 2023 🥇
🎬 I'm sure you've heard this before, "Available land is terrible for capital growth!"
That somehow if an area has more available land, you should stay away and invest in an area without available land instead.
But like some of the other myths that we've torn apart in previous episodes, today will be no different!
I want to show you why this sentiment is not backed up by the data and could be hindering the success of your portfolio.
We'll show you that there's far more available land in Australia than you might realise, even in those densely populated cities of Sydney.
We'll then compare two suburbs within the same area, one with lots of available land and one without - to see if there's any major difference in capital growth over the last 10 years.
So if you're looking to sharpen your skills and start to spot areas before they grow or you're curious about which parts of the country look set for growth, this episode is just what you've been looking for!
CHAPTERS:
00:00 - Introduction and Overview
01:37 - Does Available Land Make a Difference to Growth Rates?
04:28 - Examples of Sydney Suburbs with Available Land and their Growth Rates
07:29 - Examples of Bendigo Suburbs with Available Land and their Growth Rates
09:21 - Examples of Bundaberg Suburbs with Available Land and their Growth Rates
10:20 - Factors to Consider Beyond Available Land and Building Approvals
14:23 - The Impact of Asset Selection on Growth Rates
18:28 - Examples of Canberra Suburbs with High Building Approvals
19:21 - Examples of Townsville Suburbs with Available Land and their Growth Rates
21:37 - The Importance of Holistic Investment Analysis and Risk Measurement
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Disclaimer: The information provided in this podcast is general in nature and should not be considered as personal financial advice. The podcast host, guests, and contributors are not licensed financial advisors. Please seek professional financial advice that is tailored to your situation and circumstances before making any financial decisions.
#propertyinvesting #buyingland #land

[@samhadden382]

Hey Arjun loving your approach and analysis, and this is an incredibly underrated topic and point you have brought up, I work as a property investment specialist in a company in Perth and we love new builds in good up and coming areas and I get sick to death of common story pushed by buyers agents and real estate agents that new land estates don’t grow in value, when as you’ve shown there’s countless examples that prove that’s not the case. I have personal investment proof and proof with my clients also we’ve made great money over the years. Thanks for posting

[@investorkit]

Thank you mate, really appreciate it.
“Overall terms” those buyers agents are right, where established houses outperform new house and lands.
However, that’s not to say there aren’t countless examples of new places doing better or as good in case by case scenarios.
Our approach has been that we don’t invest in new house and land as there isn’t enough data for us to make data driven decisions on the property in a new pocket.
What we did see though is that, Local house and land specialists are much better at that as they can track and measure $psqm of each lot to the detail, know upcoming stages for prices, and foresight of types of builds coming into estates and how many are powering through pre sales with good outcomes on Val’s.
Most Buyers agents and educators instead just throw a blanket rule over due to lack of knowledge there which is where your point is coming in.
It is fair due to macro data on it but also unfair because they simply don’t know what those locals of house and lands would know.
So in summary whilst not our area of focus, it can still go well with the right knowledge as you’re pointing out.

[@eaturbeef]

Hey Arjun - but if stockland or landcom were to develop in the developable land, won't that increase the SOM that directly impacts price growth?

[@investorkit]

Hey, it’s a good question, however it’s not that simple otherwise building approvals would have a clear correlation price with price growth or decline which they do not have. As per this video this needs to be holistically analysed alongside established supply available, price variance between new build and established builds ($psqm2) and also demand for those builds and established dwellings.