Buying part of a neighbour's block

[HappyCamper]

Haven't been here for a while...

I'm thinking about approaching a neighbour to buy about 180 sqm of their adjoining block to build a driveway to access my backyard. My backyard currently has no vehicular access as the block is only about 8m wide. Being able to access my backyard would enable me to build a 60 sqm granny flat with its own driveway battle-axe style.

His block is 30m x 18m and my estimate of the land value is $550-600k.

Land: $180k
Granny flat build: $150k
Driveway: $20k (???)
Sub-division: ???
Potential rent of granny flat: $500/week

Hmm, just typing this post up might have answered my own question. Am I better off putting my money in a house + granny flat in Western Sydney?

 

[DaveM]

Check that you dont end up with a subdivided title that is not big enough to be anythinig but a patch of grass under planning regulations.

 

[Rolf Latham]

Haven't been here for a while...

I'm thinking about approaching a neighbour to buy about 180 sqm of their adjoining block to build a driveway to access my backyard. My backyard currently has no vehicular access as the block is only about 8m wide. Being able to access my backyard would enable me to build a 60 sqm granny flat with its own driveway battle-axe style.

His block is 30m x 18m and my estimate of the land value is $550-600k.

Land: $180k
Granny flat build: $150k
Driveway: $20k (???)
Sub-division: ???
Potential rent of granny flat: $500/week

Hmm, just typing this post up might have answered my own question. Am I better off putting my money in a house + granny flat in Western Sydney?

180 k for a driveway

suppose it depends on if you will get the a subsequent increase in value of at least 400 k, which in my experience is unlikely.

400 k geared into existing grannies will possibly yield a better end result ?

t
arolf

 

[HappyCamper]

suppose it depends on if you will get the a subsequent increase in value of at least 400 k, which in my experience is unlikely.

Agreed. It would make mine the most expensive house in the suburb! Which it can't possibly be!

 

[matto_]

are there other things you could do with the 180k? Are there other potential purchases/options, where you dont need to buy this small-ish piece of land?