Investing in an Infill Estate? Here’s everything you need to know…

Have you heard of an infill estate?

No? Well, today’s your lucky day – because we’ll give you the full run down, to ensure you’re not missing out on any opportunity when it comes to property investment.

Yes, you have heard of infill estates? Well, it’s also your lucky day! Let’s run through all the intricacies, including reasons why they can be a great option for prospective property investors!

But first of all, What is infill property?

It’s probably safe to say that this is a good place to start when it comes to chatting about any concept in the property world.

To put it simply, an infill area is an allotment of property, typically around 10-20 lots (so pretty small), that forms an estate in an existing area. For example, recently, we’ve had some great opportunities arise for our investors, finding infill locations in suburban areas within 25 minutes of Brisbane’s CBD, in quality areas primed for growth.

Typically, we like to focus upon infill areas that have allotments of property that can build freestanding homes, given the fact we LOVE houses for property investment

Why are Infill Estates a great option for property investors?

1. Proximity to infrastructure and amenities

   When looking at any investment property, one of the driving factors in our decision making is always the quality and presence of surrounding infrastructure and amenities.

   Why? Well, what would you rather – move to a place with bad roads, no public transport, and no supermarket or parks?

   OR, would you rather have everything there, ready to enjoy?

   It’s probably a pretty safe bet that you’d prefer the second option – and this is the same for the vast majority of the population.

   Infrastructure and amenities bring demand, and demand is a great thing for a property investor, as it brings both short term rental demand, as well as long term equity gain associated with price growth.

   So, because infill estates are located in existing areas, it’s almost guaranteed that there is quality infrastructure closeby.

   For more info on how to find the right location for your investment property, check out the BLOG!

2. Traditionally Owner-Occupier areas

   Especially when the infill estate is focused on houses, rather than apartments, it’s very common for the surrounding area (usually suburban or city outskirts) to be a high proportion of owner occupiers.

   And the thing is, we know that another great way to bring demand to an area is ensuring that it is predominantly owner-occupier, meaning that people that own the properties, actually live in them.

   As an investor, this is a great thing, because it means that people buy there to live there – because it’s a great place to live. Alongside this, plenty of permanent owner occupiers makes the area feel more homey, increasing the want for families to settle down in the area – even if they are renting.

3. Lower demand and awareness = Lower prices

   Typically, you won’t find these infill estates popping up on Domain or Realestate.com. Usually this is because the developer is operating as a wholesaler, or the estate isn’t large enough to warrant a huge amount of marketing to the general public.

   Ultimately, both of these things are great news for savvy investors!

   Because of this decreased promotion and awareness, there are naturally fewer eyes on the property, meaning that demand isn’t as high, and prices therefore don’t tend to match the local median prices.

   Alongside this, the scarcity of infill estates means that people very rarely hunt for them, making the opportunity far greater for those with industry connections and wholesale opportunities.

All in all, this makes for a great potential opportunity for prospective investors, given the different circumstances in which infill estates present themselves in the market – they really are an underrated form of property for investment!

Whilst it’s super important to appreciate and acknowledge the benefits of infill property investment, it’s also important for us to chat about the potential disadvantages:

• Land Zoning must be considered when planning an infill location. Often, as the land isn’t brand new, old overlays may exist, which makes it all the more important to ensure that everything is looked over prior to getting started, in order to minimise wasted time and money.

• Council Permits and Approvals are another key element to ensuring the success of an infill project – particularly in the initial stages. Having these set in place as early as possible will help limit project timelines dragging out. At the end of the day, we’re here to help you navigate the property investment journey each and every step of the way. From overseeing the permits and zoning, to ensuring the final inspection is perfect – we’ve got your back.

Interested in learning more about getting started on your Propell property investment journey? Not sure where to start?

Give us a call on 1300 776 735 or get in contact HERE – we’d love to help!