Starting out as a Property Developer can be very confusing - so many choices to make! One of the questions I get asked the most around this is "which Council should I choose?"
And it's a very good question! Some Councils are going to get ruled out straight away because they obviously don't match your preferred strategy. You're highly unlikely to find a greenfields development site with hundreds of lots in the heart of a city!
But there are some easy to follow guidelines for narrowing down your choices.
Targeting Growth Areas
As a very first step, check out your state infrastructure plan. They all have different names, but a Google search for "yourstate infrastructure plan" is a good place to start. Try strategy instead of plan if you don't get the correct result first time around.
The information contained in these documents is gold. Basically they lay out all the planned growth for the state in the next couple of decades. You can immediately see where development is going to be focussed, both in terms of infrastructure and population.
Next, it's time to focus in on the capital city you're interested in. Try searching for something like "capitalcity growth strategy" and you should strike gold. If you want to go with a major regional centre, chances are the same search will work for you, but that depends on how enthusiastic your state is about growth in regional areas.
Putting both of these documents together gives you a clear picture of areas that are likely to boom over the next few years. This is what you're looking for.
Some flashing big lights drawing your attention to areas of growth include:
In fact, if you can grit your teeth and read both reports from first word to last, it's all laid out there in front of you in excruciating detail. You certainly don't need to guess!
Proximity
Now you know where the areas earmarked for growth are, pick one that's close to you. I know your immediate thought is "but shouldn't I pick the BEST one?"
Well, for starters the idea of "BEST" is quite vague, and is going to be different for every person. And it’s true - maybe you could do a little better if you choose an area that's two hours away.
But in reality? When you need to meet consultants on site, or there's an issue with something and you need to check it, that four hour round trip is going to feel REALLY long. And may even make it impossible to do those things in a reasonable timeframe.
Be kind to yourself and make it easier - choose a Council that's reasonably close to you. At least for your first deal or two.
Strategy
This is another crucial thing to think about. If your strategy is to build infill housing, then choosing a Council where the opportunities are all large greenfield housing estates isn't much good to you.
Although many of the infrastructure plans are geared towards city expansion, there are also areas within capital cities that have been earmarked as development hubs. Look for those.
As an example, Melbourne has National Employment and Innovation Clusters in specific locations such as Monash, Latrobe and Werribee. There are also Metropolitan Activity Centres, generally centred around major train stations. Add in Health and Education precincts, and that's a lot of potential growth areas within the suburbs of Melbourne.
So you should be able to find a Council pinpointed for increased development near you that matches your criteria.
Price
You've done the research, you've identified a suitable Council, and now there's one more major thing to think about - price.
There's a rule of thumb that says you should buy in the most expensive suburb you can comfortably afford, and hopefully that's the case with the Council you've chosen.
But what if the location you've chosen is way outside your budget? Does that mean you have no choice but to do the 2 hour drive to somewhere you can afford?
Well, one of my favourite sayings is "Don't let your lack of resources stop you from being resourceful". I've done a lot of content around low and no money down deals, doing JVs, utilising money partners etc. I'd recommend you spend some time going through that, and don't let the price of your chosen area stop you from finding deals there.
The bottom line is, don't fall into the trap of trying to find the "right" Council. Find a Council that's reasonably close, earmarked for growth and provides the opportunities you're looking for. Because for you, that is the right Council.
And it's a very good question! Some Councils are going to get ruled out straight away because they obviously don't match your preferred strategy. You're highly unlikely to find a greenfields development site with hundreds of lots in the heart of a city!
But there are some easy to follow guidelines for narrowing down your choices.
Targeting Growth Areas
As a very first step, check out your state infrastructure plan. They all have different names, but a Google search for "yourstate infrastructure plan" is a good place to start. Try strategy instead of plan if you don't get the correct result first time around.
The information contained in these documents is gold. Basically they lay out all the planned growth for the state in the next couple of decades. You can immediately see where development is going to be focussed, both in terms of infrastructure and population.
Next, it's time to focus in on the capital city you're interested in. Try searching for something like "capitalcity growth strategy" and you should strike gold. If you want to go with a major regional centre, chances are the same search will work for you, but that depends on how enthusiastic your state is about growth in regional areas.
Putting both of these documents together gives you a clear picture of areas that are likely to boom over the next few years. This is what you're looking for.
Some flashing big lights drawing your attention to areas of growth include:
- major infrastructure projects (eg a new hospital)
- expansion of transport (eg a new railway line)
- development hubs
- land highlighted for development
In fact, if you can grit your teeth and read both reports from first word to last, it's all laid out there in front of you in excruciating detail. You certainly don't need to guess!
Proximity
Now you know where the areas earmarked for growth are, pick one that's close to you. I know your immediate thought is "but shouldn't I pick the BEST one?"
Well, for starters the idea of "BEST" is quite vague, and is going to be different for every person. And it’s true - maybe you could do a little better if you choose an area that's two hours away.
But in reality? When you need to meet consultants on site, or there's an issue with something and you need to check it, that four hour round trip is going to feel REALLY long. And may even make it impossible to do those things in a reasonable timeframe.
Be kind to yourself and make it easier - choose a Council that's reasonably close to you. At least for your first deal or two.
Strategy
This is another crucial thing to think about. If your strategy is to build infill housing, then choosing a Council where the opportunities are all large greenfield housing estates isn't much good to you.
Although many of the infrastructure plans are geared towards city expansion, there are also areas within capital cities that have been earmarked as development hubs. Look for those.As an example, Melbourne has National Employment and Innovation Clusters in specific locations such as Monash, Latrobe and Werribee. There are also Metropolitan Activity Centres, generally centred around major train stations. Add in Health and Education precincts, and that's a lot of potential growth areas within the suburbs of Melbourne.
So you should be able to find a Council pinpointed for increased development near you that matches your criteria.
Price
You've done the research, you've identified a suitable Council, and now there's one more major thing to think about - price.
There's a rule of thumb that says you should buy in the most expensive suburb you can comfortably afford, and hopefully that's the case with the Council you've chosen.
But what if the location you've chosen is way outside your budget? Does that mean you have no choice but to do the 2 hour drive to somewhere you can afford?
Well, one of my favourite sayings is "Don't let your lack of resources stop you from being resourceful". I've done a lot of content around low and no money down deals, doing JVs, utilising money partners etc. I'd recommend you spend some time going through that, and don't let the price of your chosen area stop you from finding deals there.
The bottom line is, don't fall into the trap of trying to find the "right" Council. Find a Council that's reasonably close, earmarked for growth and provides the opportunities you're looking for. Because for you, that is the right Council.
