Western Australia has been experiencing a boom in new home construction. Figures from WA Housing Forecasting Group showed that 28,966 new homes were built from June 2013 to 2014—a 20% jump in new home construction compared to the year before, and the trend continues to be on the upswing.
Whether you’re buying for yourself or for investment purposes, choose a block that will generate capital growth. Even as you choose a location where many investors are buying land and house packages in Perth, which might soon flood the market with new homes for rent, a good house and land investment could still give you winner, whether the times favour a rental market or not.
If the block is located in an area where structures are built similar to one another, the potential for capital growth could be lower. However, if the lot is located near the river, an ocean, or other points of interest, the potential for capital growth is more than certain.
Blocks in a new housing development located across a park or near a school, on a quiet street, will certainly appreciate in value at a much faster rate. Pay close attention as well to the housing estate. Many home buyers look for lush, rolling estates with parks and gardens, walkways, and impressive facades.
Since block measurements have been decreasing in size, determine the value by comparing the measurement in square metres to blocks located in similar housing developments.