House for sale next to my IP

I got an IP (a single BR house) in Melbourne. There is not much land in that as almost the whole land is occupied by the one br home. The house adjoining is an identical house ( like sister houses) and is for sale. The price is 100,000 more than what I paid for mine 4 years ago.
Should I be purchasing this property too? Or should I be selling my one now?
What would be the expert advice?

 

Does total land move you into development ability?

How has your one been going? Moving you toward your goals or further away?

 

Just thinking if the two are joint to make one bigger house,
Or putting down one and extending the other to a two br house with a larger garden space .
The one I own is rented and have no difficulties so far in occupancy.

 

Maybe just look at the odd's of this happening in your investing lifetime,where you can buy next door as the future growth opportunities combined both lots side by side may well be undervalued ..imho..

 

Only if 1 + 1 = 3 (or more).

 

You are assuming that the buyer will pay 100k more just because that's the price slapped on there. If they look at the sale of your property I suspect they might negotiate that down. Wait and see if it sells and for how much unless there's a good reason to sell or buy now anyway.

 

$100,000 was paid 4 year prior if reading OP post is correct.

 

I don't know if there is a right or wrong answer to this conundrum.

You can adopt a strategy of eventually buying all your neighbours' properties. In the end you'll have some mean bragging rights on top of a spectacular portfolio.

I heard a story of a fellow in Mt Druitt who lived in a houso place and had all his relo's obtain the two adjoining houso properties on compassionate grounds.

He eventually bought the three on the cheap and on sold them a few years later. He made a motza. He's now doing a stretch in Silverwater but he's happy because he could afford a good legal team.

 

100k in for 4 years for that style of property is quite a hike.

 

With the way Melb has performed over the past few years.....
$100k rise isnt too bad
If its the sister property you will have a better insight to its construction/condition
You also dont have to offer the full amount, try to negotiate from a lesser amount.
@datto is this like "a friend of mine", or do you have phone access
The Druitt has done well, as have you

 

No, no. I wouldn't know him from a bar of soap. Mind you, where he is now you'd want a good grip on your soap lol.

 

If there is no development potential, I would think that 2 x separate houses (although small) are worth more in value and rent then if they were combined into a larger home. The exception to this would be if it was in a certain premium location.

 

My guess is Yes ..... Melb in last 4 years has been booming