This Australian Family Refused to Sell Their Home, Now the Property Is Surrounded by a Suburb and Could Be Worth $33 Million — Here’s Why Land Is Still the Ultimate Hold

Nothing says “stick it to the man” quite like holding on to your precious property — despite it being worth millions of dollars — as developers build an entire suburb around you.

That’s exactly what one Australian family seems to have done.

The Zammit Family’s Valuable Land

The Zammit family reportedly refused to sell their five acres of land, even as rows and rows of new homes popped up around them. One real estate agent estimated the Zammit property value to be just shy of $50 million Australian dollars ($33 million) in new developments, Australia’s 7News reported in March of last year.

The home is located about a 40-minute drive from the center of Sydney, the country’s largest city, on what once was “farmland dotted with little red-brick homes and cottages,” Diane Zammit told the Daily Mail. Today, however, it’s dominated by two-storey houses situated so close together that many of them are separated by mere inches.

Most of the neighboring lots sold in 2012 according to the New York Post, when the Zammits could have received about $4.75 million for their home. Real estate agent Taylor Bredin told 7News the family’s land could possibly fit 40 to 50, 3,200-square-foot homes. Each home would be worth $1 million Australian dollars, or almost $700,000.

However, Bredin commended the family for holding out.

Some of the Zammits’ neighbors felt the same way. One told the Daily Mail they were “very happy” the family wouldn’t sell.

Why Real Estate Is a Great Investment

Real estate is a tangible asset that typically appreciates over time, making it one of the more popular investment classes for building wealth. The Zammit family’s situation is a unique example of how holding on to property can pay off.

Besides the potential for appreciation, there are other benefits to holding onto your home. As you pay off your mortgage over time, you’ll build home equity. This means you’ll likely come away with more cash when you do eventually sell — and you can use those profits to increase your down payment and get better mortgage terms for your next real-estate venture.

Additionally, as you build home equity, you become eligible for a home equity line of credit (HELOC), which generally offers a better interest rate compared to other forms of borrowing.

If you choose to rent part of your home or use it as an investment property, your rental income may help pay for your mortgage, other real estate investments, or broader financial goals.

The benefits of buying and holding on to physical property are vast — but if that’s not possible for you, there are other ways you can invest in real estate.

How to Invest in Real Estate

If the challenge of buying, maintaining, and holding on to physical property doesn’t appeal to you, there are easy ways to invest in real estate without all the hassle.

Today, there are simple online platforms that allow you to invest in real estate investment trusts (REITs) and crowdfunding deals.

Real Estate Investment Trusts (REITs)

REITs are publicly traded companies that own income-producing properties such as apartment buildings, shopping centers, and office towers. They collect rent from tenants and pass a portion of that income to shareholders in the form of regular dividend payments.

Investing in REITs can help you dip your toe into commercial real estate, which has outperformed the S&P 500 over a 25-year period. Until recently, this option was only available to those with millions to invest.

However, it’s important to note that shares in a REIT can’t be sold quickly like average stocks, and the price can change drastically based on factors such as interest rate hikes. The Fed hiked the rate again on July 26, which could lead to a drop in REIT share prices due to decreased demand. Despite this, a REIT can still offer a cheaper option for entering the market.

Real Estate Crowdfunding

Real estate crowdfunding is a relatively new way to invest in real estate. It uses the internet and social media to raise capital by collecting small sums of money from a large group of individuals and businesses to collectively invest in a real estate acquisition. Although it offers a relatively low entry point to become a shareholder, it can be risky.

Conclusion

The Zammit family’s refusal to sell their home despite its increasing value is a testament to the potential benefits of holding on to real estate. Real estate is a tangible asset that appreciates over time, allowing homeowners to build home equity and potentially profit from future sales.

If buying and holding physical property is not feasible for you, there are alternative ways to invest in real estate, such as investing in REITs or participating in real estate crowdfunding. These options provide opportunities to enter the real estate market without the responsibilities and hassles of property ownership.

Regardless of the chosen investment method, real estate remains a viable option for building wealth and diversifying investment portfolios.

This article provides information only and should not be construed as advice. It is provided without warranty of any kind.