Buying the original house on a subdivision

[holtk5]

Hi all

We are currently looking for our first PPOR, to then begin our property investing. We have found a few nice houses that are the original house on a subdivided block with a unit out the back.
In regards to the (original) house increasing in price, would this take longer than say a similar house with no subdivision?

I realise this is not investing related, but i am hoping to get some good advice anyhow!

Thankyou
Kate

 

[steveadl]

Of course it's investing related!

It depends on the prices you are talking about. For example, if the price for the old house on the already subdivided block is $250k and another house next door that hasn't been subdivided is selling for $350k - I'd still prefer the house with more land.

Also depends on your personal financial situation, and what exactly it is you are looking for in an IP. eg. the old house on the cut block may offer a better yield as you're not paying as much for the land.