• Home
  • About
  • Advertise
  • Contact
  • Policy
  • Guest Post
  • Archive

One Cent At A Time

A Personal finance blog to get rich

  • Email
  • Facebook
  • Pinterest
  • RSS
  • Twitter
  • Beautiful Life
  • Becoming Rich
  • Beginners Guide
  • Extra Income
  • Productivity
  • Saving Money

Should I Buy Land As Investment?

February 4, 2019 2 Comments

Share this:

  • Tweet
  • Email

Finding land for sale is always a balancing act. You must find the right time to do so, and there are many variables at play that will affect whether or not it’s a good time to buy.

Should I Buy Land As Investment?

So, is now a good time to buy land for sale? Should you wait? What’s the forecast for 2019?

The Cyclical Nature of Perth’s Real Estate Market

Before we discuss whether or not you need to get in on buying land for sale immediately, we need to discuss the nature of Perth’s real estate market and how it moves. Like many other areas of Australia, Perth’s real estate market is cyclical.

This is actually true for most of the world – Perth’s cycle is largely driven by mining activity, although there are other forces at play, including tourism, agriculture, and the like. 

Currently, Perth’s real estate market is on the upswing. It’s recovering from the downturn in late 2017 and early 2018. However, not all segments have caught up just yet. The market is hotter for established homes than it is for new land sales.

This is actually a good thing for those seeking land for sale, because it means there’s less demand than there is supply, which indicates that it remains a buyer’s market, rather than a seller’s market.

The Market Type and What You Should Know

So, what does it mean that Perth still enjoys a buyer’s market when it comes to new land sales? What is the difference between a buyer’s market and a seller’s market?

Seller’s Market – In a seller’s market, there is more demand for land than there is supply. This allows sellers to set higher prices than would otherwise be possible. In some cases, buyers may even vie with one another to purchase land, driving the price higher as they go.

Buyer’s Market – A buyer’s market is the opposite of the situation above. In this scenario, there is more supply than demand, meaning that sellers are often forced to sell at lower prices than they would prefer, sometimes even below market value depending on how badly they need to move the property. 

The Various Market Segments Today

At the time of this writing, Perth’s housing market is moving upward, changing from a buyer’s market to more of a seller’s market. However, not all segments are at the same point on that upswing.

For instance, in an article published in Western Suburbs Weekly in late October 2018, Chief executive Allison Hailes of the Urban Development Institute explained that while there was positive activity in the top and middle sectors of established housing (existing homes), new land sales were still sluggish. 

However, because the rest of the market was moving upward, she stated that it would only be a matter of time before new land sales picked up speed, as well.

Reinforcing that is a report from BIS Economics that indicates Australian property rates in general will continue falling slightly over the next few years with an expected decline of about 3 to 5 per cent by the end of the cycle. 

The Effect of Lending Criteria

Another factor that bears on Australia’s real estate market is the tightening of lending criteria. In short, new rules and regulations have made it more challenging for some borrowers to obtain loans.

This is particularly true when it comes to interest-only loans. Coupled with the significant existing supply of properties, it means that sales are slower than they might otherwise be.

The Future Trajectory

So, when will land values rise once more? When might you expect to see the change from buyer’s market to seller’s market? The shift will occur slowly and might not impact 2019 transactions at all. You should definitely look for it to begin in 2020 and will most likely be in full swing by 2021. 

Is Now the Time?

Is now the time for you to be snapping up land for sale in and around Perth?

Yes, now is the time. And, while the buyer’s market is predicted to linger for a little while, the ongoing upward trajectory of the existing housing market will inevitably pull new land sales up as well. Even the best predictions are just that – guesses based on expertise and knowledge, but still guesses. 

There is always the possibility that trends will accelerate and it will become a seller’s market in 2020, or even in late 2019. However, do not mistake that for urgency. There is ample time to make sound, reasoned decisions based on due diligence. 

Moving Forward

So, how should you move forward? The answer is: with confidence. It’s a buyer’s market, and that means the power is in your hands. Take your time and research land for sale, land estates, and other properties around Perth, as well as other areas of Australia.

Once you find the perfect parcel, do not be afraid to negotiate. Again, the power is in your hands, and sellers will be hard-pressed to be too picky given the fact that there is an oversupply of available properties.

In Conclusion

Ultimately, now is a great time to snap up land for sale. It is currently a buyer’s market, and the cyclical shift to seller’s market is not expected to occur for some time, particularly for new land sales, rather than existing homes.

However, do not let that make you complacent. While it remains a buyer’s market, it’s important for you to begin the process of finding the ideal land for sale now, so that you can complete your other due diligence – checking topography, researching amenities, checking into future developments within an estate, and other vital factors essential to making an informed decision.

LIKE THIS POST?
I agree to have my personal information transfered to MailChimp ( more information )
Join our community of 8000+ subscribers to increase your net worth and build wealth
We hate spam. Your email address will not be sold or shared with anyone else.

Share this:

  • Tweet
  • Email
The tool that changed the way I manage my personal finance - Personal Capital, The Best Free Personal Finance Tool

Want to start a WordPress blog now? The onecentatatime.com blog is hosted by Siteground Web Hosting. For only $3.95 a month, Siteground can help you set up and host your website/blog quickly and easily.

About the Blogger Hi I am SB, a personal finance enthusiast with a career in software development. I am an immigrant to the USA since 2005, after being born and brought up in India. This 40 something technocrat lives and breathes personal finance whenever he gets time from the day job, job as a husband and a dad

Some links on this page may be affiliate links, if you make a purchase following the links, I may earn a commission. Read affiliate disclosure here
« How Much Life Insurance Do You Need?
Using Your Resume to Get That High Paying Job »

Comments

  1. Ali says

    March 6, 2019 at 3:41 AM

    This is my first time i visit here. I discovered such a large number of fascinating stuff in your web journal particularly its examination. From the huge amounts of remarks on your articles, I figure I am not by any means the only one having all the happiness here! keep doing awesome

    Reply
  2. Greyson Harper says

    June 24, 2019 at 4:00 AM

    Whether it is land or housing, property is one of the best investments you can make.

    Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.



Create your own blog in 20 minutes and $20

Personal Capital, a free tool to change your financial health today

I use and suggest Upstart, for your personal loan need

CreditKarma, a free tool to check your credit scorey

I use Coinbase, for my crypto investments

101 Cents at a Time

101 Ways to Earn Extra Money on the Side
201 Frugal and Perfect Birthday Gifts
101 Ways to Save Money Everyday
101 Ways to be Better and Successful at Work
101 Ways to Save Environment and Energy
101 Frugal and Romantic Anniversary Ideas
101 Low-Cost Men's Fashion Ideas
101 Personal Finance Tips
101 Ways to Reuse Household Stuff
101 Things to Do, When Nothing to Do
101 College Graduation Gift Ideas
100 Tips for Ecommerce Startup
101 Ways to Enjoy Indoor During Winter
101 Ways to Beat Procrastination

Popular Posts

Quick Cash - How to make $100 legally, in a day
Living well on less than $15,000 a Year
Top survey sites for side income
What to do when auto repair goes wrong
Where should I invest my money now?
20 Ways to be productive and happy at work
51 Ways to get out of debt
Be a better person in 15 days, 15 ways
Income ideas for retirees and senior citizens
51 side jobs for college students
Urgently need a large amount of money?
Should I buy or should I rent?
Best Personal loan providers
25 Ways to save environment
25 DIY car repairs to save money
How to decorate office cubicle
How to show your wife you care
50 Financial Rules for Success
51 Frugal weekend family activity ideas
Become Rich By Saving 1 Hour Of Daily Wage
How much do I need to save for retirement?
How to negotiate your salary

Follow us on FaceBook

About Author

SB

Blogger by choice and IT manager by profession. Finance is my passion and gardening is my greatest satisfaction. Born in India, settled in US, Husband and a father. I created this blog in 2011 with a vision to help others. Thanks for your patronage. More info on my "about" page.

View all posts


Subscribe

Join our community of 5000+ subscribers to increase net worth and build wealth

Advertisements

Personal Stories

How I got a new HP computer replaced
Was COVID circulating in USA in fall of 2019?
How my credit score went up 800+
Why I didn’t invest in Bitcoins
How I controlled impulses to buy things
Why this blog is named One Cent at a Time

Subscribe via Email

Site Disclaimer

Disclosure of Material Connection: Some of the links in this web site are “affiliate links.” This means if you click on the link and purchase the item, I will receive an affiliate commission. Regardless, I only recommend products or services I use personally and believe will add value to my readers. I am disclosing this in accordance with the Federal Trade Commission’s 16 CFR, Part 255: “Guides Concerning the Use of Endorsements and Testimonials in Advertising.”
Read full Affiliate disclosure


One Cent at a Time is published by SB. The opinions expressed herein by him are his own and not those of his employer or anyone else. All content on One Cent at a Time is for entertainment purposes only. By reading this blog, you agree that SB and/or One Cent at a Time is not responsible for any actions taken after reading this blog. For the full disclaimer, click here .

Major Media Mention

One Cent at a Time Media Appearances

Copyright © 2023 One Cent At A Time · Designed by Nuts and Bolts Media