Would buying the laneway add value to a rural property?

[Candy]

Hi again

Have a rural property, and lease over government laneways that run through the property. The laneways are of a nature that they could never be sold as stand alone land for houses or as their own block.

The lease is very (very) cheap, but I was wondering if purchasing the laneway would be a way of adding value to our property?

Purchasing the land area would increase our 'owned' land area by 35%. But it doesn't increase the area in reality because you have use of it anyway, and if you were ever to sell the place, the lease gets transfered to the new owner.

Then again the property size (over 2 titles) does, at least on paper, increase by 35%. Wouldn't this be good for valuations, selling power etc?

 

[steveadl]

Just thinking out loud here, so I could be wrong...

If those lane way easements are still to remain - whether you own them or the council - nothing could be done on them as far as building and subdividing goes (not that you want to do that, but just for illustration) so not sure how much value it would add?

 

[Candy]

Yep, that's why haven't bothered to buy them at this stage. But am not used to looking at home from an investment point of view, so wasn't sure if it would make a difference to value.

eg I was wondering:
At the moment, the property must be represented as (pulling a simple figure out of the air here) 100ha.
If laneways were purchased, theoretically I *think* you could represent it as being 135ha over 2 titles.

*Theoretically*, would that increase the value and therefore equity in our place?

Or am I way off? I don't know how where to go to check this kind of technicality?

 

[Propertunity]

I don't know how where to go to check this kind of technicality?

A valuer who values rural land.

 

[bespoke]

Would the value of the property be increased more than the cost of buying the laneways
eg purchase for 20k, value increased by 50k.

If you purchased them would you still have to give access to them if wanted by whomever has a legal right to access?

 

[Candy]

See it sounds so obvious when you give such logical answers

Ok so the only way I know to access a rural valuer here is to pay $$ and go through the bank, are there other alternatives just to get an indicative idea first?

No Bespoke, the only property with access rights on the laneways is already ours.

 

[Propertunity]

Ok so the only way I know to access a rural valuer here is to pay $$ and go through the bank, are there other alternatives just to get an indicative idea first?.

Ms Candy, you must think more laterally

Ring said bank and ask who they use to value rural property. Then make the call to said valuer and ask for his 'opinion'.

 

[INVSTOR]

Why don't you speak to the Town Planner at the council and see if they want to offload it. I know a couple of people who were offered laneways in WA for free as council didn't want to mow them etc. (Quite a few years ago) Do you have to take care of it as part of your lease? I tried to buy part of one beside my property. The council valued it at $15,000 although it meant I would be able to build another house on my property. (apparently it's commen to offer less though) Then it went to a council meeting and council voted on it and they decided not to sell it to us. I couple of years after that i was at the council talking to TP and he was suggesting to me to buy it and see if I can get the neighbour behind my property to buy the bit beside them also. Now the latest is they are thinking of turning the laneway into a road and aquiring either part or all of some of the adjoining properites.
So it may be best to speak to TP first to get an idea of what their plans are also.

 

[bespoke]

. Now the latest is they are thinking of turning the laneway into a road and aquiring either part or all of some of the adjoining properites.

Ouch!!!

The property they are thinking of aquiring wouldn't be yours would it?

 

[INVSTOR]

It looks like it to me! The person on the other side of the laneway is a councillor for the local council and has two houses on the one block. We've only got one. I was just going to let the land sit but I want to develop it ASAP now to three houses. (it would double the current value of the land) Their plan is to consider making a road in 10yrs time - it may not happen, but I've seen too many people have land /$$ taken off them to wait around and find out.

 

[bespoke]

yes invstor

How common is that- person gets the gig as a councillor in local council and then proceeds to feather their own nest.

 

[jrc]

Buy. Eliminates people's right to access. Future governments may change policies. You're paying rates on them anyway.

Are you sure you've got the area right. if the roads are about a third of your properties, that is not typical. On a hundred hectares, these unused roads would normally constitute a few hectares.

It's a fairly drawn out procedure so the sooner you start the better.

Your latest valuation notice from the State Valuation office will give you a rough idea of value per hectare.