Buy and hold more houses in 1 row of a street?

Context: buy and hold
Location: Stafford, Brisbane 4053
Current zoning: LMR

Here is a hypothetical question.
If you already own 2 of the 4 block title house on the same row in the street. If another remaining property come on sale.
Would you buy it become available?

 

Not sure about the zoning there, usually 20 m frontage allows for 3 storeys and to achieve 4 storeys or more they need 30 m, or preferably 40 m frontage? This was required for Osborne Rd, Mitchelton. Developers usually count the total GFA the lots allow for pricing your land. So acquiring more lots to optimize the zoning requirement makes sense

But then again, is the product for the redevelopment (units or townhouses) selling well?? If not, you would need a long time for the market to catch on

 

Not unless 1+1=3

 

Sometimes houses in a row dont assist potential as well as they could. The homes to the rear can be more valuable if each house has its own frontage. It can increase potential use without absorbing so much land in access roadways etc eg a four lot grid has good depth, width and two road access options.

Also consider such strategies can be attacked by the ATO. Its hard to argue you have CGT assets when you acquire with intention to develop like this. Even if they are owned and rented for many years. There have been tax cases like this where someone acquired rows and later gave up on the concept. ATO disagred sale of the land was a CGT event and say it was a development intention and so is isolated profit making profit and no discount applies. Twice the tax bill. Worse examples they clear the land and sell the cleared land with DA. So more tax and GST.

 

Oh wow, something to consider.

 

yes definitely, easier to negotiate with one seller even if selling to a developer....if that possibility is there!