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Is Buying Land a Good investment?
Buying land as an investment in Australia is one of the smartest and safest investments you can make.
Whether you're looking to build your dream home or simply acquire some property for future development opportunities, buying land is a great way to diversify your portfolio and secure your financial future.
With a 15% increase in Melbourne and Geelong housing sales in Q2 2023, there's never been a better time to purchase.
In this blog post, we'll explore the reasons why buying land is a good investment choice.
1. Land is a limited resource
One of the main reasons why land is a good investment is because it is a limited resource. No matter how much we advance technologically, we can't create more.
As the population continues to grow, the demand for land will also increase, which will in turn, drive up prices. In fact, 73% of buyers who purchased in Q2 2023 bought land only.
Despite rising interest rates, 2,146 land lots were sold last quarter, the first increase since September 2021. Highlighting why buying land now can lead to greater future value appreciation.
2. Affordability
If you have a limited budget but want to buy in your dream location, land is the best option.
More affordable than a package, you can secure your ideal land size in a growing suburb and build later, especially if you purchase untitled land*. This is a great way to spread out the cost over time and help guarantee a good return, especially when you secure land in a thriving neighbourhood like Wollert.
Right now, the median lot price for a 350m2 block in Wollert is $399,000. Only 43km from Melbourne's CBD and surrounded by established amenities, Wollert is the best place to buy.
With affordable land for sale in Wollert priced from just $309,000, purchasing within Arramont Estate is a wise investment.
*Ensure you speak to your agent about the building timeframe within your contract. At Arramont, purchasers have 24 months before building must commence.
3. Customisation & control
When you purchase land, you have much more control over what happens in comparison to investing in existing property.
You can choose to develop it in a way that is most beneficial to you. Build your dream home design suited to you and your family needs to live in or construct a rental property for additional income. You also have the power to decide when to sell the property and who to sell it to.
4. It's a good long-term investment
Because land is a limited resource, it doesn't generally depreciate. It's more likely to increase in value, especially when buying in a growing area.
Location matters a lot when buying a home, especially as an investment. If you buy land in an up-and-coming neighbourhood, like Wollert, which is new but growing with infrastructure and amenities, there's a bigger chance of a high return.
Only 1.5km from Craigieburn Station and 4 minutes to the Hume Freeway, Wollert is one of the best locations to buy investment property. Did you know sales in Wollert went up 13% this quarter?
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Buying land is an excellent way to diversify your investment portfolio while securing your financial future. It's a tangible asset that never loses its value and a limited resource that will always be in demand.
If you're looking for the ideal spot for an investment property in Melbourne, Arramont offers a range of land for sale in Wollert that could be perfect for you. Contact our team today to find out more on 0425 741 891 or email us at Arramont@rpmgrp.com.au.
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