You know, I read articles like the one below and think to myself “how is it that so called leaders of the industry fail to actually provide accurate information in this day and age of tighter legislation.”
I say this based on the fact that the writer suggests that what she is doing is “Investing”, it’s an argument I have had with property “investment” training companies for years, doing what is talked about above is not Investing.
What this person is talking about is speculating, working or developing….not investing.
The fact that she is counting on developing the site, waiting for a zoning change and basically “working” her strategy means it is not an investment.
Sure she can make money from it but if we use the analogy of the share market she is speculating, waiting for a stock split or trading….not buying and sitting back allowing the investment to go up in value and taking some income from the dividends or in this case rent.
Sure it’s a little pet peeve, much like reminding people that when they are drinking sparkling wine that just because it has bubbles in it doesn’t mean it’s champagne.
Here’s some of the article, it does make sense and I can see the strategy making money but do expect to do some work.
Those who do a little extra research could soon find their properties easily outperform the market, creating more equity or, for those who choose to sell, more profit.The capital city markets are rising across Australia. It’s an exciting scenario and, with interest rates so low, a fantastic time and opportunity for many of us to buy.There’s an extra bonus when it comes to buying in Brisbane – a market which hasn’t yet quite taken off at the same rate as Sydney or Melbourne, but one that’s definitely rising.At the moment, a draft new City Plan has been sent to the Queensland Government for final approval. It could take several months but once it’s given the go ahead, the plan will be returned to council and a commencement date will be set.This plan has now been changed quite a few times. Initially, anyone who owned a block about 400 metres from a train station or shopping centre had the capacity to develop their block, with low density housing lots proposed to change from 400 square metres to 300 square metres, provided there was a development application.The big secret is now this: only blocks within 200 metres of a shopping precinct that’s more than 2000 square metres can potentially have a zoning change from 400 square metres to 300 square metres in an area deemed low density residential. Gone are the train stations and bus stops – in future it will be about where the little hubs with the newsagencies and bakeries are placed.