Land value for an established property

Discussion in 'Investment Strategy' started by simplevalues, 9th Jan, 2021.

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  1. simplevalues

    simplevalues Well-Known Member

    Joined:
    4th Nov, 2020
    Posts:
    257
    Location:
    Sydney
    Hi PC experts,

    We are about to finalize a deal for an established property 14kms from Brisbane CBD in north.
    We are getting the deal for 550k and it’s a nice renovated 3B 1B 1G on a 640m2 block.
    The question is - How do I know what exactly is the land value for the specific deal. I can see there were few vacant plots which sold for between 360 to 400k few months back within the age
    I just want to know from some experts here on what the normal breakdown should be for land and house value while buying an established property.Is there any formula or technique to derive this .

    Looking forward to hear some tips on this.

    thanks.
     
    simplevalues, 9th Jan, 2021
    #1
  2. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
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    6,421
    Location:
    Qld
    Recent sales of nearby vacant land is the best indicator, hard in inner city areas.
     
    Marg4000, 9th Jan, 2021
    #2
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  3. Property Twins

    Property Twins Mortgage Brokers & Buyers Agents Business Member

    Joined:
    31st May, 2016
    Posts:
    2,738
    Location:
    Australia
    Your bank valuation (if its a full valuation) will reflect the breakdown.

    I understand for a decent property (house), typically land value is at least 65% to 70% of the purchase price / value. It would just depend on the area.
     
    Property Twins, 9th Jan, 2021
    #3
    simplevalues likes this.