Moorooka house - small block - relative growth prospects

Discussion in 'What to buy' started by cfsuarc, 19th Jun, 2021.

Join Australia's most dynamic and respected property investment community
Tags:
  1. cfsuarc

    cfsuarc Active Member

    Joined:
    16th May, 2021
    Posts:
    29
    Location:
    Sydney
    Moorooka 5br house pretty much on the border with Salisbury. My issue is the block’s only 400m2.

    Would a small block in Moorooka (surrounding ones are 7-800m2 I think) be benefitting in full from the overall price growth in the suburb?

    I guess it might depend on the reasons for the growth:
    • If the reason is general land scarity/development, would a 400m2 grow by 5% for each 5% appreciation in a 800m2 block?
    • If the reason is around gentrification that hopefully happens later/under way now, would that percentage be in line as well?
    Sorry if it’s a simple question, I am trying to learn.

    Many thanks!
     
    cfsuarc, 19th Jun, 2021
    #1
  2. boganfromlogan

    boganfromlogan Well-Known Member

    Joined:
    10th Jan, 2017
    Posts:
    3,332
    Location:
    Brisbane
    Larger block is better over longer term.
     
    boganfromlogan, 19th Jun, 2021
    #2
    cfsuarc likes this.
  3. Rich2011

    Rich2011 Well-Known Member

    Joined:
    9th Aug, 2015
    Posts:
    1,315
    Location:
    Brisbane
    If you can afford the larger land size I'd definitely go for it. 400m2 is a bit restrictive for extending houses or adding sheds/carports/garages or even subdividing in the future. If 700-800m2 is the norm in the area then 400 will be less desirable when you go to sell.
     
    Rich2011, 20th Jun, 2021
    #3
    Sackie, cfsuarc and wylie like this.
  4. willair

    willair Well-Known Member Premium Member

    Joined:
    19th Jun, 2015
    Posts:
    6,795
    Location:
    ....UKI nth nsw ....
    If the location is on the border with Salisbury then it would first pay to view the recent changes to the flood overlay mapping for that property or contact council on 3403-8888 as they can be very helpful..

    With the value range as it will come down too the location and zoning for the property as 400sqm's is quite normal for those streets near the pizza hut or on the edge of Rocklea x Salisbury ..

    Will the price value wise compared to the very few that are left above 812sqm's near Salisbury and Rocklea then as we control several within that area ,i would say yes but the location is the most important longterm factor..
     
    willair, 20th Jun, 2021
    #4
  5. Firefly99

    Firefly99 Well-Known Member

    Joined:
    24th Jul, 2020
    Posts:
    1,734
    Location:
    Qld
    I think the location and usability of the block is more important than block size (once block size is below a subdivision size). If there is already a 5 bed house on the block it’s not likely that someone would want to do an extension. Is it double story? Is the yard size decent?
     
    Firefly99, 20th Jun, 2021
    #5
  6. cfsuarc

    cfsuarc Active Member

    Joined:
    16th May, 2021
    Posts:
    29
    Location:
    Sydney
    yes I think it's a decent yard maybe 100m2, nice and useable. Double storey yes.

    LDR is the zoning. Surrounding properties/streets are all LDR I think.
     
    Last edited: 20th Jun, 2021
    cfsuarc, 20th Jun, 2021
    #6
  7. cfsuarc

    cfsuarc Active Member

    Joined:
    16th May, 2021
    Posts:
    29
    Location:
    Sydney
    So 812 is the min subdividable size here, I assume that's what you're referring to? Yea makes sense.. once that principal 'difference' is gone, it's the more straightforward 700ms vs 400ms appeal - the usability for OO/tenants. Except the factor of home extension still remains and reduces the appeal of 400 vs 700.
     
    cfsuarc, 20th Jun, 2021
    #7
  8. samiam

    samiam Well-Known Member

    Joined:
    5th Sep, 2015
    Posts:
    2,131
    Location:
    on my way
    samiam, 23rd Sep, 2021
    #8
    cfsuarc and petewargent like this.