In the 1978 movie “Superman”, the Lex Luthor explained his master plan, wherein he essentially drew the line between real estate and a wasteland. He laid down a red line between the cities of California and the deserts of Arizona. Everything to the left of the line was the priciest and most sought after properties in the USA. Meanwhile, everything to the right of the line was the sandy desert.
Valuing House and Land Packages in Perth and Other Cities
The same can be said for some parts of Australia. If somebody drew a line across the 94, everything to the left of that line would be some of the best real estate in the country: Perth, Albany, Rockingham, and Bunbury. Meanwhile, everything to the right of that line is miles of Outback. Apart from serving as space for nature reserves, the vast stretches of land contribute little in terms of property value.
This is one of the many factors property developers like redinkhomes.com.au use to determine land value. This is why a 50 square metre flat in the city is sometimes pricier than a lot three times its size. Investors look at the appearance, functionality, and cost of maintenance of a property. These things help them decide whether a lot is worth developing or not. These are significant factors regarding the value of the house and lot packages offered in Perth and other places in the Land Down Under.
The Outback Investment
The creation of Brasilia proved that given enough resources, a country can build an entire city out of scratch. In the US, Las Vegas proved that even the middle of nowhere can turn into an economic and business hub.
The reason Australia cannot build a city in the middle of nowhere, however, is natural consequences. Developing large swathes of land requires permanently diverting massive amounts of natural resources. This could severely alter the lifestyle of the native wildlife. It is a dangerous gamble that will cost money, and even then, buyer interest still is not a sure thing. It is much safer to stick with proven ground, even if there is more competition.
There will always be significant value in land, but some will always be more valuable than others are. The key is to consult trusted agents who are experienced in the industry so you can make the best investment decision.