Problems with purchasing large properties?

[propernewb]

Hi All,

I am currently looking for an investment property and I am eyeing a few that have particularly large land sizes i.e. >1500 m2. The houses on these properties are relatively small - 3/4 bedroom with 1/2 bathrooms.

My plan is to lease the property once acquired, although I am unsure of the additional costs/problems that would be associated with such a large property. The first that comes to mind is the cost of regular garden/landscaping maintenance fees. Another is the higher likelihood of vermin/pests being located on the property - although the house can be secured to avoid them troubling the tenants.

Are there any other costs/problems that I should be aware of?

Cheers

 

[Phiber]

Tenants do not like to take care of lawns and backyards. A bigger property requires more work and will put some people off. You may want to look at including the lawn maintenance as part of the rent, but obviously this comes at a cost to you and the bigger the land, the bigger the cost.
On the plus side, plenty of space for the pets to run around.

 

[hugh72]

Potentially lower yields as more of the value is in the land component and this may mean land tax. Plenty of positives though regarding possible development or subdivision. You may need to include lawn mowing.
Where is the property as we could then provide a more informed answer

 

[propernewb]

Thank-you for the replies.

I am looking to purchase in the Blue Mountains area, namely Leura and Wentworth Falls.
I figured that lawn mowing would have to be included, but that this would be a minor cost compared to the potential involved in a large plot of land.

Bushfires are also a concern, and I would imagine insurance would therefore be a problem.

Here is one example that I am thinking of:

http://www.realestate.com.au/property-house-nsw-wentworth+falls-119185095