Will you keen to buy the house next to yours, to create a large block?

[Aulyna]

A bit confused, would like to know your opinions:

The house next door is selling. Want to buy just because the land is connected with mine, and both blocks are in core area, and multiple units can be built later on.

I clearly know I would not buy it if it is not connected with my block, as

1. have been thinking of retirement, do not want to buy anymore.
2. uncertain of housing market

What do you guys think?

 

[spludgey]

If you don't want to buy, don't buy. No matter how good the numbers, if you don't want it, then it's a bad investment.

Your first point is sound, but I don't think with your second one you have much to worry about. People will have to live somewhere and I don't see rents in good areas falling any time soon.

But if you're wanting to retire, do you really want to buy, move, demolish both houses, build and then sell or manage? Doesn't really sound like retirement to me.

Personally I like real estate, I find it exciting and while I spend at least 20 hours a week on it, I don't really consider it work.
In your case though, it seems that you don't really want to be any more involved in real estate than you already are.

 

[Aaron_C]

If you are near retirement - take it easy

 

[wylie]

We bought the house behind an IP with the thought of building in the middle. We went to an town planner who told us what we could do the the big block but we are too lazy to do it , not to mention our concern that we are clueless about building from scratch.

One day a developer may offer us good money for this double block but meanwhile each block is 907sqm with good houses on each block, which rent well and are worthwhile as "keepers". People value such blocks as there is room for a major extension and pool.

If you are close to retirement and don't want to buy it and then wait for the developer who sees potential in the double block, why not see if you can list them as "buy two and develop". Of course that is only if you plan on moving when you retire.

 

[luckyone]

Maybe it would be a good project for you during your retirement?

 

[Ed Barton]

We bought the house behind an IP with the thought of building in the middle. We went to an town planner who told us what we could do the the big block but we are too lazy to do it , not to mention our concern that we are clueless about building from scratch.

One day a developer may offer us good money for this double block but meanwhile each block is 907sqm with good houses on each block, which rent well and are worthwhile as "keepers". People value such blocks as there is room for a major extension and pool.

If you are close to retirement and don't want to buy it and then wait for the developer who sees potential in the double block, why not see if you can list them as "buy two and develop". Of course that is only if you plan on moving when you retire.

That's a lot of combined land area for the area you invest in. With the right zoning you (or the developer who buys) could whack up a mass of units. What's the zoning like? The zoning may have, and probably will, become more favourable over the decades you own it.

You're right, each block is desirable to build a huge house and pool on. Good play.

Any problems with demolition control (I have some pet termites you can baby sit if necessary)?

 

[wylie]

Any problems with demolition control (I have some pet termites you can baby sit if necessary)?

LOL. Both houses DCP, whole street DCP but good solid houses that would have to be worked around.

But... house in our DCP street and one opposite one of these IPs (both pre-war) have managed to be taken off the blocks. The town planner we saw could see no real problem with a developer having at least one of them removed.

I believe a developer would have better hope of it than us.

Send me your termites .

 

[sanj]

We bought the house behind an IP with the thought of building in the middle. We went to an town planner who told us what we could do the the big block but we are too lazy to do it , not to mention our concern that we are clueless about building from scratch.

One day a developer may offer us good money for this double block but meanwhile each block is 907sqm with good houses on each block, which rent well and are worthwhile as "keepers". People value such blocks as there is room for a major extension and pool.

If you are close to retirement and don't want to buy it and then wait for the developer who sees potential in the double block, why not see if you can list them as "buy two and develop". Of course that is only if you plan on moving when you retire.

Have you considered getting plans approved for your block and flicking it on as brisbane market improves?


To the OP, personally i would probably buy it if zoning allows an extra unit to be built due to the larger size. Eg on each block you can build 2 but together you can build 5

 

[Aulyna]

Thanks for all the replies... appreciated ; -)

Have been thinking of retirement from a few year ago... not sure when I can make up my mind...

I am bit worried about housing over supply soon in Canberra, as too many new suburbs/houses/units are under construction at the moment. The rental market seems dropped much...

The house I bought two years ago, next to the one I am talking about, has 100m2 bigger block, but was 5k cheaper. It rented $480/w from two years ago...I have not increased the rent, as similar houses nearby on the market starts from $380/w.

ACT housing down, and no quick fix: http://www.canberratimes.com.au/act-news/act-housing-down-and-no-quick-fix-20130313-2g14x.html

Any comments on Canberra's market, or whole au market?