DON’T LOSE MONEY ON INVESTMENT PROPERTY PART 2

Expanding on the part 1. I want to look at a simple, however a little more complex model. As you will begin to understand the seemingly random sprawl of how and why cities in both the Main State CBD’s and the suburban CBD’s develop.

Australian history shows us that all our major towns and cities were located on sea ports as the world then was dependant on shipping for almost everything we needed. Even major towns were located on rivers allowing supplies and goods so as to remain viable.
Let’s look at another map of developing and looking at CBD development

06/12/18

In this example, we are assuming that the city is still basically revolving around the CBD. We can see the City Fringe breaking down from a uniform pattern to different corridors.

THE TRANSATION ZONE is changing dramatically also.

In early settlement, we could suggest that the area 2 located at approximately 7 o clock would be the port area at its extremity a warehousing as the next area with business that feed of the CBD closest to area1.
From the 10- 11 O Clock area of section 2 can be used for manufacturing and industrial allowing close access to the ports for import, export and local consumption
From the 10- 11 O Clock area of section 2 can be used for manufacturing and industrial allowing close access to the ports for import, export and local consumption.

CITY FRINGE

Consisting of housing, small business and remaining close to the CBD. The of 12 – 1. O Clock segment can be the start of an urban movement of the growing population and the need to have transport close to or live with availability to their work.
Note: how sections 2 & 3 border each other. This still happens today as our cities become clogged with vehicles and public transport is falling behind the population requirements.
The 3 zone at 1-5 O Clock represents city and city fringe living. The older homes will give way to developers as the CBD expands.
The outlying 8-10 O Clock represents rural areas and farming of all types. This also is dictated by soil type, rainfall as to the type of farming.
I hope this brief interpretation of how our cities develop makes some sense to you. In the next blog I shall give you a more complex look at City development and a further explanation of why this information is important to me when looking to select Investment properties for my clients.