Established house(bigger land) vs new built house(smaller land)

Let's say I found 2 houses at the same suburb and around the same price. The only difference is the land size 700sqm vs 380sqm.

Which one is better for capital growth?

 

@propertyaulover

They aren't making more land.

What do you think is the reason for 700sqm land being priced as the 380sqm?

How is the location of the properties?
Does the bigger block offer future development opportunities e.g. duplex?
How old is the house? Does it require much work?
Is it for owner occupied or investment?

The smaller the blocks the higher the price per sqm.

Check if the bigger block has easements? This will influence future development potential.

Would be good if you shared more info.

What is YOUR analysis and why would you prefer one over the other?

 

Thank you for your reply. You have some good questions there!

What do you think is the reason for 700sqm land being priced as the 380sqm?
I guess the smaller new house looks more fancy?

How is the location of the properties?
I think both are at good location, that's the reason I am checking that area.

Does the bigger block offer future development opportunities e.g. duplex?
I have no detail insight about this but looks like there are more & more subdivision in that area. I guess it have future development opportunities.

How old is the house? Does it require much work?
Around 40 years old house but it is renovated. Looks OK but I not sure about the building structure.

Is it for owner occupied or investment?
My plan is looking for a property to live and use equity to purchase an Investment Property.

Example
Old Property
https://www.realestate.com.au/property-house-sa-modbury+heights-133140522

New Property
https://www.realestate.com.au/property-house-sa-modbury+heights-132021762


How can I check if the bigger block has easements?

Actually I want to get into property investment but don't know how. I made a costly mistake by purchase an apartment and now I can't find buyer and the value is dropping. Even refinancing is a trouble for me!

 

the dining and family in the older house look like a later built extension - the dining is similar size to a single garage
a building inspection should be careful about how the extension works - roofline, etc

i cannot see much short/medium term growth in the newer house, no development potential at all, possibly similar to a lot of recent subdivisions of older lots - i would only be interested if i wanted to live there

 

@propertyaulover - Ask the council - where you can find easements diagram. In NSW this is on the purchase contract - Section 149

 

Typically land appreciates while buildings depreciate.
The newer house might look shiny and nice right now, what about in 5 -10 years time? The older house looks much better, pool, gardens, yard space, larger kitchen, neighbours not looking in on you etc.
I would personally go with the property that has a larger land content, just my two cents.

 

If I was you, 700sqm house any day over 380sqm