At RRIA, we value land as an asset class above all others. As it is a real asset, land will always go up in value over the medium-to-long term, making it one of the most stable asset classes to invest in. This is because it is in limited supply – they aren’t making any more of it.
As the population increases over time, so does the demand for land. In Australia in particular, we have historically had relatively high population growth, not only through natural growth (births exceeding deaths), but because we have a high immigration rate.
Basically, people want to move to Australia for the opportunities it presents – be it financial or lifestyle. Of course, immigration all but ceased in 2020, but there are strong indications that immigration will increase to previous levels, if not beyond, when border restrictions ease.
As the population increases, so does the demand for land. With current mortgage interest rates at historical lows, and likely to stay that way for some time, borrowing becomes easier, driving demand even higher. Add in the emotional premium owner-occupiers will pay for their dream home in the perfect location, and demand is driven even higher.
We have formulated a simple process for selecting land options that we like to call our ‘8-Point Strategy’. Our property and investment experts analyse 8 specific factors to determine whether a parcel of land meets our strict criteria for investing – and we pass our results on to you.
For any proposed development opportunity in a particular region, our analysts examine:
Our portfolio recommendations are driven by these 8 factors, factors that we believe are key to making sound judgements on the suitability of a parcel of land for investment.