Buy backyard neighbour's house

[charliey]

Hi all,

Usually we buy next door neighbour's house which is horizonal (assume). What about buy back yard neighbour's house which is vertical?

One of the issues I can think of is easement at back (normally). You can not build anything on it.

Is there any benifit of doing so?

Thanks
Charliey

 

[wylie]

We have bought the back neighbour's house of an IP which has given us 72 perches with 15 metre frontage and two street access and enough room to put a driveway down either block and put one or two houses or three townhouses in the back yards.

We may never do the development, but the option is there. Whilst doing such a type of split is not ideal, it is an option down the track, and council has given us a "should be okay" nod.

Wylie

 

[Barracuda]

Hi all,

Usually we buy next door neighbour's house which is horizonal (assume). What about buy back yard neighbour's house which is vertical?

Is there any benifit of doing so?

Thanks
Charliey

It depends on factors like where it is, what are your plans, what is your timeframe and most importantly - what else could you do with that money in the meantime (opportunity cost).

We have an opportunity to do the same at the moment - would probably give us over 4000m2 in North Wahroonga - but we wouldn't be likely to do anything with it for many years and N Wahroonga is unlikely to achieve the same capital growth as other places closer to the CBD that we are likely to purchase with that money instead. So, for my situation, I think it is more sensible to place that money down on something more likely to achieve good solid growth in the short-medium term instead of securing an otherwise ordinary property with mediocre growth and low rental for a 'what-if' scenario for 'one-day'.

Besides - if it's a 'one-day' proposition, why not buy it next time around with the money and experience gained in the better investment.

Now, if you happen to live near the CDB, close to water....

Cheers,