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From: Mike .
Ratio of improvements vs land value
From: NW
Date: 05 Oct 2000
Time: 15:07:08
A question for you seasoned campaigners.
What do you regard as a good ratio for value of house vs underlying land value? Also, does the answer differ when you've got land you intend to build a house on?
Ie what priced new house should you put on a block with land value of X?
To give some context to the question: the present situation is that I've got a house on a corner block which is subdividable etc. The new block would then fetch say $80-$100K (at present) leaving the house as is on about 16 perch. Property is in one of the eastern suburbs of Brisbane which is undergoing a degree of "gentrification" from old housing commission status.
Replica Queenslander style houses are going for $220k-$270K around this area - often on quite narrow (ie about 10m frontage blocks) - ridiculous I know! (Although you Sydney/Melbourne siders probably think this is dirt cheap!)
Given that my proposed new block will have more street frontage due to the corner position should I build a replica on it myself, preparatory to cashing in on this "greater fools" scenario re replica's on small blocks or should I just flog the land and retain the nice rental house on remaining block?
Appreciate your general and specific comments, rules of thumb and experience.
Cheers N.
Ratio of improvements vs land value
From: NW
Date: 05 Oct 2000
Time: 15:07:08
A question for you seasoned campaigners.
What do you regard as a good ratio for value of house vs underlying land value? Also, does the answer differ when you've got land you intend to build a house on?
Ie what priced new house should you put on a block with land value of X?
To give some context to the question: the present situation is that I've got a house on a corner block which is subdividable etc. The new block would then fetch say $80-$100K (at present) leaving the house as is on about 16 perch. Property is in one of the eastern suburbs of Brisbane which is undergoing a degree of "gentrification" from old housing commission status.
Replica Queenslander style houses are going for $220k-$270K around this area - often on quite narrow (ie about 10m frontage blocks) - ridiculous I know! (Although you Sydney/Melbourne siders probably think this is dirt cheap!)
Given that my proposed new block will have more street frontage due to the corner position should I build a replica on it myself, preparatory to cashing in on this "greater fools" scenario re replica's on small blocks or should I just flog the land and retain the nice rental house on remaining block?
Appreciate your general and specific comments, rules of thumb and experience.
Cheers N.
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