Investors find other avenues for capital growth

Investors find other avenues for capital growth

Posted on Friday, January 27 2012 at 9:45 AM

It’s natural for property prices to take a breather as they move through the property cycle, but that doesn’t mean investors can’t brainstorm ways to create their own growth in the meantime.

Knowing where the rezoning is happening might be the solution, according to Gavin Hegney of Hegney Property Group.

Suburbs proposed for rezoning to allow higher density dwellings is high on Hegney’s list when researching properties for investors.

In this current market the property investor needs to be more astute and more strategic, even as far as researching where the rezoning will be happening and when, Hegney said.

Buyers agent Damian Collins of Momentum Wealth said he’s a big believer in this strategy too and has bought many properties for investors in areas that saw seven to eight per cent growth when the rest of the market was sliding backwards, simply by buying and holding in areas before they were officially rezoned.

“In times like this the development site is where the money is more likely to be made,” he said.

Hot Property Specialists buyers agent Liz Wilcox said she often helps clients buy properties in the areas to be rezoned for higher density dwellings for the purpose of seeing faster growth once the rezoning occurs.

Wilcox said one of her projects next month, when the Toowoomba Regional Council’s new rezoning plans are released, is to study it carefully for the best buying opportunities for one particular client.

Wilcox’ colleague, Zoran Solano, also a buyers agent, said he’s also closely watching the Brisbane rezoning announcements, however he said the council is increasingly making it difficult to capture these opportunities.

“Council wants to preserve the tin and timber so it’s doing what it can to restrict the number of houses from being rezoned,” said Solano.

“However it doesn’t mean these opportunities no longer exist.”

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