HOW TO LOSE MONEY ON AN INVESTMENT PROPERTY PART 3

GENERALISATION OF A MODERN CITY STRUCTURE

 

Source: Larry S Bourne Internal Structure of the City

 

Some examples of Sydney this Century

A TRANSITION ZONE

This shows which direction a city moving into and what types of construction is taking place.

SYDNEY CBD
THE CASINO
The old and empty wharfs opposite the new Casino are now multimillion-dollar apartments. They also have excellent access to the main CBD area via a foot bridge & light rail.

TRAMS
Construction of trams through the CBD to offer pedestrian traffic easy access and eliminating domestic transport. (Good or Bad welcome comments) they work well in Melbourne; however, the streets are much wider allowing all vehicle entry.

SUBURBAN CITIES.
LIVERPOOL CITY AS AN EXAMPLE
All excited about the new airport however, that doesn’t relate to immediate jobs. Long term great, BUT it will be some time before construction begins in earnest. It has had an immediate impact on land pricing and a building frenzy in the south west Sydney area.

 

INFRASTRUCTURE

TRAFFIC
Crawling pace at peak times from the south west freeway and other major thoroughfares.
With all the industry an airport attracts the road system will become a parking lot leading to public pressure on all those councils.

RAIL
Stations with parking for 600 cars minimum is the only way to ease the burden on the road system. Rail instead of toll roads has to be considered to direct people to use public transport to reduce the strain on roads.

PARKING
Really bad now, so much so that I prefer to meet outside Liverpool rather than have the hassle of parking at shopping centres and walking. One councillor told me that its not a problem as no one will own cars in the future we will call up driverless car to take us wherever we wish. WOW and where are they going to park??

HIGH RISE APARTMENTS
While councils love these, we get back to the transport and parking problem. People are not content to eat, sleep and live in one location. Public transport etc needs to be regular and reliable. Liverpool & Parramatta are two examples.

MEDICAL
Liverpool Hospital is the largest hospital in the western corridor and getting expanded, has virtually nil parking and no plans for automated parking stations anywhere.

RESTAURAUNTS
Whilst there are some excellent places to eat in Liverpool it boils down to time of day and whether you can park at a suitable distance to your venue.

RECREATIONAL
Community parks, walking tracks, fitness stations and picnic seating are now all expected facilities as housing lots have virtually no yard for kids to play in. Fortunately, some new developments take this into their planning of new estates.

EMPLOYMENT
With cities becoming so population dense we do not like to spend hours travelling to and from our work place. Example it used to take me 20minutes to travel to Parramatta. Now that time is between 40 + 50 minutes depending on traffic. Then you do a day’s work then you travel home
Sydney CBD, I drive 30 minutes to a train station and a 35-minute train ride. By car that is a minimum of 1.3 – 1.5 hours plus very high parking costs.

THE HOME BUILDING BLOCK
A common building block is around 230sqm. In fact, some duplexes have more outside space than a single-story house and land.

SAD – SAD FACT
Prisoners spend more time outside in exercise yards than children. We now give kids vitamin D tablets. As they do not get enough sunlight on their bodies.

ROADS IN NEW ESTATES
The roads are so narrow that with cars parked on both sides’ emergency service vehicles; Fire, Ambulance and some Police units cannot drive down them. There is one suburb that the Garbage Truck does not pick up bins. People wheel them to neighbouring streets.

Next week. Where I show you how we apply this strategy to our clients.