What to look for when buying house and land packages
New housing estates often have very effective marketing and can seem like the ideal investment – so how can you sort through the spin and make sure you're getting a good deal?
Blogger: Julie Beck, Hatch Property
There are so many opportunities being marketed for new housing estates, and compelling arguments that support the location and the growth potential of the particular offering. So what is important to know in order to to make a successful selection??
The fundamentals are simple. If you stick to the fundamentals, you are more likely to make a successful buying decision.
• How is the estate being marketed?
• How many lots are available and are there further stages to be released.
• What is the mix of owner occupiers to investors?
• What is the calibre of the owner occupier homes being built in the area?
• What are the inclusions and finishes like and can you see a display home?
• Is it being offered by a “one stop shop” who provide everything ..finance, legal, property management?
• Who is the builder and how are they recognised within the industry?
• What is the vacancy rate in the area?
• What is the current yield in the area for the type of property you are considering?
• How many other estates are there in the vicinity with available packages?
• What are the current and emerging employment opportunities?
• What is the median household income of the area and what is its movement?
• What are the education facilities in the area?
• What are the shopping, transport and recreational facilities in the area?
• What is access to major arterial roads like?
• What public transport is available
• Where are the health care facilities?
• What is the age demographic of the area?
These are some of the questions you need to have in mind when shopping for an investment house and land package. Look to purchase in a predominantly owner occupier estate, with homes of an equivalent and enhanced value. If the estate is being widely marketed by marketing promoters it is likely there will be a high percentage of investors in the estate. Ensure you are clear on the standard and level of finishes within the proposed home and inspect a display built by the developer to ensure the quality reflects the promise. Be cautious if you are offered finance, legal and property management services as part of the total service package. Often external advice from a service provider can offer a perspective on the purchase you may have missed.
Do your own research to establish the vacancy rates and anticipated yield. Speak to independent property managers and ask general questions about the area. Become informed about the employment growth opportunities, schools, and general amenity and infrastructure in the area, current and in the pipeline. If it is in the pipeline, it approved or on a longstanding wish list??
There are many sound reasons for buying a house and land package off the plan. Take personal responsibility for becoming informed above and beyond what the marketing agent is telling you and be aware and involved in the process. If you don’t understand something, ask someone who is qualified to assist you. Qualified advice can save you a great deal of stress and money.
Happy hunting!
About Julie Beck
Based in Canberra, Julie has been actively working in the property arena for over 12 years in diverse roles ranging from Shopping Center Manager and Commercial Property Manager to a qualified Investment Property Buyers’ Agent with a focus and expertise in the Brisbane market. Her experience in such mixed roles has given her a unique and broad property experience where she has identified opportunities within niche areas in the residential and commercial markets and developed services to meet those needs. Julie is a qualified property investment adviser (QPIA) accredited by PIPA, a licensed Real Estate agent in ACT and Queensland. Julie is a board member of REIACT.
For more information visit www.hatchproperty.com.au