How Much Do You Consider Future Infrastructure Projects When Property Investing?
How much do you consider future infrastructure developments when choosing which properties to invest in and how do you find out about these future developments.
Hey guys, sorry, came into this late, crazy busy day. You may have answered this already, but how much do you use future infrastructure projects compared combined with your other, I guess you all the stats as a positive indicator. So how much when you’re looking at an area do you consider future infrastructure projects?
Um, it’s one of the major indicators that I use. I, I look at the Queensland government’s and Australian government’s infrastructure plans for the next five years and I make purchasing decisions based around that. So if you look at property price rises in Sydney, Melbourne, and Brisbane in the last 20 years, every single time a train line opened up in the five years preceding that train line, opening up, the average property in that area outperformed the market average of the wider area by 20 percent in five years on top of whatever normal growth that would do. Like if you understand that or if you want to stand walk scores in the parent bank, close to that infrastructure or new infrastructure and how every one percent better. A Walk score is results.
In Brisbane, I have the time over a 10 year period of about two and a half thousand dollars more in extra capital growth. If you can choose a place with a walk score of 70 to 80 percent versus a walk score of 50 percent, the likelihood or the potential for future capital growth is just much higher. So infrastructure is absolutely everything. If you can follow hospitals, universities, train lines, major arterial roads, shopping centers. I’m new, like piggyback off new estates, but you know, not be in the newest state. There’s so much potential to be made.
Yeah, well that’s the thing like even at where I live in Virginia beach, there’s new estates have opened in [inaudible] springs but then they’re adding like all that sort of all the shopping centers and the pharmacies and all that sort of stuff and then that like big hospital that’s going on down on the south end of the sunshine coast, but there’s a lot of different infrastructure stuff that happens that can be positive not just for the particular suburb. That infrastructure happens in buffer surrounding suburbs as well because it means those surrounding suburbs are closest to that stuff as well.
The hospital on the university, like the big hospital project that’s just gone in at Virginia, has added at least 200 to 250 grand worth of value to the landing every suburb within a three kilometer radius of it in the last three years. That’s one infrastructure project. You know what I mean? It’s not even a train station or a main road. So it’s so powerful if you can just piggyback on them and getting there before everyone else does.
Yeah. And I guess the question would be then how do you find out about this sort of stuff?
Um, I don’t know the website off the top of my head, but you can literally Google Australian government or whichever state that you’re targeting plus infrastructure plans and they have a five to 15 or 25 year infrastructure plan and then you can also see which projects are actively running in any state at one time. And what projects are planned and have already been signed off on. And it’s just about identifying what’s happening in the marketplace that you’re following, and then, you know, choosing the suburb that doesn’t have a train station that’s going to get one or the suburb that doesn’t have access to a main road like some of the stuff in Sydney southwest or a freeway that now does or choosing the place that’s going to be next to but not impacted by a new airport like the southwestern side of Melbourne or the southwestern side of city. It’s really easy to find that information on Google for free. Yup.
Cool. So hopefully that helps. Um, I thought that was really, really good answer, Ben, and really helpful to anyone who’s thinking about infrastructure and looking at suburbs as well. Well, I hope you enjoyed the answer to this question with Ben Everingham from pumped on property. We’re really having a blast doing these q and a sessions with you guys. So keep the questions coming. If you’re at the point now where you’re ready to purchase an investment property, but you think you might need some help, then ben is offering free strategy sessions to on-property listeners. Simply go to on-property dot com dot EU forwards our session, and you can book a time with them.
Then you can go through where you’re at, where you want to be, and what your next steps are to get there. So again, that’s on property dot. You forward slash session. Thanks so much for watching. Until next time, stay positive.