Doolandella Investment Property, another example of purchasing and building relatively close to Brisbane in a suburb that is set to boom. This area is surrounded by new estates that are selling for around the $500K mark but are on 300 m2 of land. It makes very logical sense that if you can but a property less than 10 years old on 500 m2 of land then that property will receive a significant boost on land value based on the prices of local sales.
As an example, there is a property for sale right now for $491,000 on 375m2 of land with an internal floor size of 170 m2. This sounds like a great buy but not 500 meters away you can purchase a bigger house that is relatively new on 500 m2 of land for the same, if no cheaper.
If you understand real estate and how the value of land works, it makes logical sense that these properties we are purchasing are going to have their land values corrected at some point in the very near future and when that occurs you will see significant growth to your investment property value.