how important is LAND?

Hi folks

Weird question id like to throw out there to you all...

how important is LAND to you?

Assuming NO subdivision. Do you prefer to buy places with decent sized land? or is this irrelevant, so long as the numbers stack up?

Also - does the size of the land contribute to potential growth of the property?

to illustrate. would u buy an ip. say costing $450k, renting $360p/wk, 3 bedda, garage, etc. but land is only 300sqm? or even 250sqm!! ?

Cheers
 
Hi folks

Weird question id like to throw out there to you all...

how important is LAND to you?

Assuming NO subdivision. Do you prefer to buy places with decent sized land? or is this irrelevant, so long as the numbers stack up?

Also - does the size of the land contribute to potential growth of the property?

to illustrate. would u buy an ip. say costing $450k, renting $360p/wk, 3 bedda, garage, etc. but land is only 300sqm? or even 250sqm!! ?

Cheers

IMO, land is an important component if there is any future development potential....if not..then its all about Location, Demand, Gentrification....
 
Hi folks

Weird question id like to throw out there to you all...

how important is LAND to you?

Hi skuzy,

This reminded me of the time I was on the deck of a small runabout, way out offshore on some horrific misguided fishing trip that I'd been sucked into. I was turning green and the swell was verging on barf limits.

One of the guys opened up a slimy can of putrid fish guts near my face....and that combined with the diesel fumes sent me right over the edge.

Knowing I wasn't going to get any better, and this irrelevant fishing trip (yes Boatboy they do exist) was going to last another four hours, I offered the skipper $ 200 to take me back to Land. He simply laughed and flatly refused.

In that exact moment - LAND - was extremely important to me.
 
Hi skuzy,

This reminded me of the time I was on the deck of a small runabout, way out offshore on some horrific misguided fishing trip that I'd been sucked into. I was turning green and the swell was verging on barf limits.

One of the guys opened up a slimy can of putrid fish guts near my face....and that combined with the diesel fumes sent me right over the edge.

Knowing I wasn't going to get any better, and this irrelevant fishing trip (yes Boatboy they do exist) was going to last another four hours, I offered the skipper $ 200 to take me back to Land. He simply laughed and flatly refused.

In that exact moment - LAND - was extremely important to me.

Hi Daz,

I must have been on the same fishing trip! Once you get past Rotto you know your stuck for another 3-4 hours. I just grabbed another beer;)

Cheers,

Bazza
 
Everything else being equal obviously more land contributes to more growth. But you can't judge the relative importance/value of land without taking location into account, I'll take a small 250sqm in inner capital city rather than a big block of land in the middle of nowehere.
 
Skuzy, even if the property can't be developed - the more land the higher the value. For example 2 very similar houses, one on 300m2 and one on 400m2 - the 400 will generally get a higher value.
 
With the current market conditions being that in most areas rental yields are CRAP, you need to adjust your strategy and try to maximise the factors of the investment.

Buying something that is on subdivideable land, and can have value added through renos and subdivision, and some nice depreciation as well will do the trick.

So, for me, more now than ever, LAND has to be there, and in a favourable location.
 
Land increases in value while buildings depreciate.

Cheers,

Bazza

Exactly. And if you're buying in an 'in demand' suburb, remember, that suburb is, and will only ever be a set size. So the more land you have, the more of thing in demand you have.
 
I understand the importance of land. But.. it usually has to go up against other features like location & transport & tax incentives on newer properties. And at the end of the day you won't get anywhere without the property fitting your budget

In a perfect world a big piece of land in an inner city suburb will suit me fine. But for budget buying <350k i'll take a newer inner townhouse > outter land & crappy house because i need good consistent growth and the depreciation to help me move forward in my portfolio.

Plus i don't have the portfolio size to be able to get funds together for worthwhile developments. At the moment, I'm concentrating on acquiring good, new, maintenance free properties, that are easily rented and are in decent metro areas.

So I guess LAND will mean different things to us individually, depending on our circumstances and current strategies.
 
As you here and see evidence of OO and renters making the adjustment to higher density living eg apartment, townhouses or units, the value of these properties will continue to become more mainstream. Therefore, the land on which these developments are built on will become even more valuable.
 
it's important but then so is location and streetscape. You wouldn't buy a huge block of land in the middle of nowhere.

I like little estates, culdesacs, nice street scapes where it's safe for kids to play withe the neighbours on the street.

land prices havereally soared in brisbane as resported here. $60k CG n 3 mths on land..it's amazing and there's still growth left.
 
Not to mention, it all comes down to price. Would you rather buy an undervalued unit or a wildly overvalued house and land?
Alex
 
Land appreciates and buildings depreciates over time.

The location of the land is just as important.

If you purchased on the north side of Brisbane last year you would have seen around 50% growth in land alone. Where as houses have gone up by around 10%.
 
Here is another take on this, I did post it already in another thread but valuers seem to be taking another view!

Interesting debate on land size. I have an independent valuers report including comparative sales in Melton that was prepared in August 2007. At that time the property being evaluated was a 3 bed dble garage h/l package on 412sqm which came in with a value of $260,000. Comparative sales included 4 properties on the same estate on land between 586sqm and 630sqm with a price range between $246,000 and $263,000. Therefore the land size didn't appear to be an issue.

Cottage blocks are becoming more and more common, especally over in WA but a few blocks away from my home in NSW there is a 205sqm block on the market for $250,000. I think a lot of people these days are happy to have a patio area as they don't have the time any more for gardening and I know from my own children that computers, playstations and texting is taking over from outdoor games - how often do you see beautiful parks with not a child in sight these days? The times they are a'changing!

Also another thought that came to mind is if you are building to rent there are plenty of tenants who prefer not to look after lawns and gardens and plenty who just plain don't!


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Here is another take on this, I did post it already in another thread but valuers seem to be taking another view!

Interesting debate on land size. I have an independent valuers report including comparative sales in Melton that was prepared in August 2007. At that time the property being evaluated was a 3 bed dble garage h/l package on 412sqm which came in with a value of $260,000. Comparative sales included 4 properties on the same estate on land between 586sqm and 630sqm with a price range between $246,000 and $263,000. Therefore the land size didn't appear to be an issue.

Cottage blocks are becoming more and more common, especally over in WA but a few blocks away from my home in NSW there is a 205sqm block on the market for $250,000. I think a lot of people these days are happy to have a patio area as they don't have the time any more for gardening and I know from my own children that computers, playstations and texting is taking over from outdoor games - how often do you see beautiful parks with not a child in sight these days? The times they are a'changing!

Also another thought that came to mind is if you are building to rent there are plenty of tenants who prefer not to look after lawns and gardens and plenty who just plain don't!


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No way that can be correct. There's no way that people will pay for a SMALLER block than a bigger block. Its like saying people will pay MORE for half a mars bar! Probably a difference between actual sales and valuations. If you have two identical houses in the same area, and all else being equal except one is on more land, the one on the bigger bit of land will always be more expensive.

Land appreciates and buildings depreciates over time.

The location of the land is just as important.

If you purchased on the north side of Brisbane last year you would have seen around 50% growth in land alone. Where as houses have gone up by around 10%.

Exactly. CG is about investing in land. All the house does is provide rent, which helps pay the loan. Otherwise, it would be too hard for many of us to hold much land that wasnt paying for itself.
 
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