House and Land Packages Hand-picked with healthy returns
Hand-picked house and land packages in emerging areas offer strong projected growth and healthy rental returns, making them the most popular strategy for Vestr. clients in today’s market.
We work with builders who are land developers too, so they control what goes into the estate, which means there’s a balance to the estate’s aesthetics and a 25 per cent cap of investment properties in each estate. The remaining properties are sold to owner-occupiers.
Return and Growth
Each state offers different capital growth and different rental returns. From our experience, Queensland has one of the strongest returns with a typical house and land package offering 4.4 to 4.9 per cent return, based on the area and the purchase price.
In Sydney and its surrounds, the returns are less than the Queensland market and they range from 3.5 to 3.6 per cent.
In the Melbourne market, returns of around the 3.5 to 4 per cent are achievable in a variety of areas.
These returns are based on a typical four-bedroom, two-bathroom, two living areas and double garage configuration, with an internal floorspace of 180 to 200 square metres.
From our experience, Queensland has one of the strongest returns with a typical house and land package offering 4.2 to 4.6 per cent return, based on the area and the purchase price.
Location
Our preference when placing clients into house and land packages is to secure property in emerging areas.
We look to place our clients, where possible, in the early stages of land releases, so they benefit from the land price increase as each stage is released. These are estates that will grow off the back of continued development from both the residential properties constructed around them and the completion of infrastructure that will support them, such a schools, transport and shopping precincts.
The Numbers
As an example, a Brisbane house and land package located 35 kilometres from the CBD would yield a weekly rent in the vicinity of $520 in the market as at May 2022.
Similarly, the purchase price of that property will be in the vicinity of $650,000, giving you a rental return of 4.16 per cent.