Join our investing community

Land

Discussion in 'Real Estate' started by kwakker, 14th Mar, 2012.

  1. kwakker

    kwakker Active Member

    Joined:
    1st Jun, 2011
    Posts:
    30
    Location:
    Sydney, NSW
    Hi,

    I have been looking to invest into propertry for some time and I have come accross various land plots for sale along the coast. While they are relatively cheap, the are classified Zoned Rural 1(a) Non-Urban, which means I cannot build on them.

    I understand Government have reclassified land before, and maybe several years into the future they may be reclassified and be able to be built upon. There are already some houses in the area, so I am hopeful that in the future it will be possible to build. I was wondering if anyone has had any experience with such property?

    Regards,

    kwakker
     
  2. Jacque

    Jacque Team InvestEd

    Joined:
    16th Jun, 2005
    Posts:
    1,885
    Location:
    Sydney
    Hi Kwakker

    Landbanking is a risky strategy and you need to have a sufficiently good cashflow to enable you to hold the property during the waiting process. It can pay off, but in the meantime consider that your finances are tied up and they could have been possibly better employed elsewhere.
    I'd be talking more to the council town planner if I were you- big difference if its 3 yrs or 30! Best of luck.