Maximising “effortless advantage” in residential property investment

Many wise economists and investors often refer to concepts like maximising the “effortless advantage”, or looking to capture “value uplift” when it comes to property investment and development.

Simplistically, these concepts refer to a process whereby the resultant values generated from improvements in infrastructure, such as a new transport network, are capitalised into surrounding land values.

Maximising these opportunities is appealing and often referred to as “effortless”, as private land owners generally become the greatest beneficiaries, often unearned, from public sector investment into infrastructure improvements.

This is a key factor as to why Brisbane and South-East Queensland represents an appealing market for property investment and development, given its strong vision for the future and commitment to invest in critical infrastructure that will continue to transform the city.

Invest near key infrastructure, like public transport hubs

In order to maximise the “effortless advantage” for their clients and partners, one key component of Mosaic’s strategy is to consistently identify existing and proposed future infrastructure projects in SEQ and acquire sites in close proximity.

In effect, the existing “effortless advantage” should be demonstrated by the unimproved land value (UCV) for a site. The UCV is the value a site is deemed to be worth without any improvements on it, like buildings or structures.

On this basis, greater locational advantage and better proximity to existing infrastructure will be reflected in a higher UCV for a site. Mosaic’s strategy to acquire sites with a high UCV thus maximises the “effortless advantage” for our clients and key referral partners.