$40m investor. 50% is new house and land. Here's what you could do.

Ask most buyers agents about new house and land and you’ll usually get a one word answer. Don’t.

Ali Hallak has been hearing it for years. He grew up in a housing commission flat in Riverwood, in Sydney’s south west, with his mum and four siblings. Today, at 29, the Buyers Club CEO holds more than 60 properties worth just over $40 million, and one of them is the home he bought his mum.

Around half of the portfolio is brand new house and land.He isn’t blind to the bad deals. Buyers Club rejects roughly 90 per cent of the house and land it reviews.

“Most people have only seen the horror stories, so they don’t know what good looks like,” he says. “BUT....never, ever villainise a property asset. I’ve made millions in house and land and millions in established. I’ve lost money on both. It comes down to how you buy and what you buy.”

Why 90 per cent don’t make it

Every deal goes through three tests, and most fail at least one.

The first is price against established.

“If it’s not at or below what second hand homes are selling for, we don’t touch it.”

Build size has to be compared like for like. Two recent resales near one of his properties sold for $875,000 and $950,000. The gap came down to 130 square metres versus 190.

The second is the builder.

Hallak calls the property managers who look after that builder’s homes and asks about maintenance and repairs. He checks how long they’ve operated, how many homes they build a year and how often staff turn over. “If they got through COVID, that’s a good sign.”

The third is specs.

No luxury finishes that overcapitalise, and no bare bones builds either. His minimums are 2.55 metre ceilings, ceiling fans in every room plus air conditioning, and a flexible floor plan.

Then the location needs a reason to grow: scarcity, new infrastructure and a strong owner occupier base.

$605,000 in equity on one new house and land deal

In May 2024 Hallak bought a block in Flagstone, south of Brisbane. Two and a half years later, it’s worth $605,000 more than he paid.

Affordable on the way in. Land was $320,000 and the duplex build $475,000. That’s $795,000 all in for two dwellings.

Cash flow from day one. Two rents bring in around $1,000 a week combined.

Big growth on the way out. It was recently revalued at $1.4 million.

Why it worked

A neighbouring master planned community was bought by a major developer, and land there jumped $100,000 to $150,000 almost overnight.

Flagstone sat five to ten minutes away at a far lower price, with new schools and amenities coming and strict covenants protecting values. As the area filled up, it was always going to catch up.

“Two and a half years ago people told me not to buy there. Now buyers are flooding in.”

Equity on day one in Hervey Bay

In February 2025, Buyers Club members bought the last four blocks in a 40 lot infill estate in Pialba. Land and build came in at $690,000, while second hand homes nearby were selling for $700,000 to $720,000.

So they were ahead the day they signed. Twenty months later, comparable homes sell for $900,000 to $950,000. That’s up to $260,000 in equity on a property that cost less than what was already there, and it’s renting for about $670 a week.

But...isn't new riskier?

"Only if you skip the checks" Hallak says. A poorly chosen established home carries the same risk.

Don’t you pay a premium for new?
That’s what the first test is for. If it costs more than comparable established stock, it fails.

What if the builder goes under? That’s why the builder is vetted before the land is even considered.

Shouldn’t I wait for the bottom of the market? “

Stop waiting for the bottom of the market. If you buy today or in the next three months, chances are it won’t make much difference.” For a flip, he says it’s probably not the time. For a five to ten year hold, low confidence is when the best deals appear.

The opportunity in the Budget, you could be get in on.

“Everyone thinks the Government helped first home buyers,” Hallak says. “It’s actually helped first time investors.”

Under the changes announced in the May Budget, established homes bought after Budget night lose the ability to negatively gear against wage income from 1 July 2027. Eligible new builds keep it in full.

Hallak says the result has been less investor competition, rising rents and softer prices in some markets. In Redbank Plains, townhouses that sold for $710,000 and rented for $500 a week can now be picked up for around $630,000 renting at $650.

“Yields have gone from 3.5 or 4 per cent to 5 or 6. You couldn’t get that a few years ago.”

With new builds now the main path to negative gearing, he says choosing the right one matters more than ever.

“Units used to get villainised. Now buyers agents buy them. I reckon house and land is next. I’m an investor first and a buyers agent second, and good house and land is about selection.”

Hear more from Ali Hallak on The SPI Show. To have Buyers Club run a house and land deal through the three tests, book a strategy call at buyersclub.com.au.

This article is general information only and does not take into account your objectives, financial situation or needs. Seek independent financial and tax advice before acting. Past performance is not an indicator of future performance.