Researching Infrastructure Development Plans for an Investment Property

You would have heard it a thousand times before but when it comes to an investment property one key piece of the puzzle (cliché) is location, location, location. When searching for the right investment property it is essential to ensure there is real demand for rental properties in the area and they have the potential to yield good rental returns. One great indicator for this type of demand is infrastructure and amenities in the area (current and planned) which this post aims to give you some research tips on seeking out.

Infrastructure and amenities can have a significant impact on the economy of an area. The actually construction of some infrastructure is enough to stimulate the economy through employment opportunities in the area, which in turn leads to wealth distribution through other local business (e.g. new port). But dependent on what the project is the outcomes will be varied, for instance a new road or train line that significantly reduces a commuter’s transit time to a metropolitan area typically will improve the residential interest in the area.

Growth will be found if you can identify areas where there is emerging infrastructure spend, however to do this you need to put in the groundwork and validate the developments will actually come to fruition (i.e. you need to be viewing reliable sources such as town plans and government reports to be validating any media speculation). When researching the area you also need to consider the infrastructure/amenities that are being built and the investment property type you are looking for and other considerations such as investment term i.e. a new university will attract a potential tenant and future purchaser pool different to a new school.

Some infrastructure, services and amenities developments to keep abreast of that all can be easily researched and are aimed at meeting community needs:

– Schools, Universities, TAFEs and other international facilities (also look into those that tailor to international students);
– Government agencies;
– Commercial office buildings;
– Hospitals;
– Sporting grounds, parks, nature reserves;
– Cafes, Restaurants, Shopping centres;
– Age care homes, Senior citizen centres;
– Public transport routes;
– Electricity and water supplies;
– Road, Rail upgrades and expansions; and
– Major industry developments (mine, port etc.)

The above list is obviously far from exhaustive, and you also need to be mindful of developments that would be a negative to the area e.g. Treatment plant.

Find below a few links that will help to validate some of the above developments:

Infrastructure Partnerships Australia – http://www.infrastructure.gov.au/infrastructure/
Nation Building Program – http://www.nationbuildingprogram.gov.au/
Australian Local Government Association – http://www.alga.asn.au
Also don’t forget to check out local council and regional government sites.

Last Tip: To get an indicator of where to start looking (if you are at a loss for where to start on the map) you can always look at where some of the publically listed companies are investing e.g. Watpac (ASX: WTP)

If using a Buyers Agent or Buyers Advocate they will be able to take all the time and stress out of the above groundwork for you. I will touch on town zoning and land release in a future post that also plays a key role in finding the right property, and another knowledge area where Buyers Agents will excel.

About the Author: David is an avid web, finance and property geek who decided to combine these interests and found BAG in his spare time. If you have thoughts, issues or questions you can find him at LinkedIn, Google+ or alternatively drop him an email david at buyersagentguide.com.au

One thought on “Researching Infrastructure Development Plans for an Investment Property

  1. HPSBA says:

    This is great information and is so important when buying an investment property/ies, there is so much to think about and having a website which puts this information up for buyers is fantastic.

    Any buyers looking on the Northside of Brisbane around Kedron / Chermside may wish to look at this link.
    http://www.couriermail.com.au/questnews/north/preferred-northern-busway-route-released/story-fn8m0rl4-1226170387100
    and
    http://www.tmr.qld.gov.au/~/media/3001fc80-ad0f-4063-99aa-927d70fad22a/northernbuswaykedrontobrackenridgenewsletter1011.pdf

Leave a Reply