Opinions on IP with odd shaped land.

Discussion in 'What to buy' started by RealesateEveryday, 10th Jun, 2018.

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  1. RealesateEveryday

    RealesateEveryday Member

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    Hi Guys,

    I am new to property investment and is thinking to invest in properties that has a bigger size of land compared to the house.

    I found one that has a good amount of land but the land shape is triangular. Please share any experience/advice you have on properties with odd land shape like this. What are the drawbacks of it?

    Thanks guys.
     

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  2. bob shovel

    bob shovel Well-Known Member

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    Triangles are good strong shapes ;)

    Convert the shed to a granny flat. Would work well
     
  3. dabbler

    dabbler Well-Known Member

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    It is an odd shape.
     
  4. Illusivedreams

    Illusivedreams Well-Known Member

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    What are your intentions ?

    This will determine advice.
     
  5. Scott No Mates

    Scott No Mates Well-Known Member

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    I thought it was even. :cool:
     
  6. Sasim

    Sasim Well-Known Member

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    Snap! I have one that exact shape.

    I would recommend checking your R codes and local planning policies against the land size and work back from there what you can do with the block.

    In my experience the triangle catches you out on a few design/compliance issues but at the same time, a benefit is wasting less set back and being a decent size, may allow something extra in that corner.

    If you are not developing - then all good with the triangle - creates a bit of interest.
     
  7. RealesateEveryday

    RealesateEveryday Member

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    I intend to buy it and rent it out. After that, I will hold it for a while to get some savings and develop 3 properties on it.

    The other route in my mind would be to use the capital growth to refinance to buy a another IP. I was thinking that a bigger piece of land 1000m would attract developers and might push the price up in the future. However the triangular shape is the main concern for me because it might turn off investors/developers.

    The property : 9 Diane Close Pakenham Vic 3810 - House for Sale #128489658 - realestate.com.au
     
  8. RealesateEveryday

    RealesateEveryday Member

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    From your experiences do you know if a triangular piece of land turns off developers? I am hoping to get capital growth from both homeowners and investors/developers. It might be a bad IP if it turns off developers.

    Thanks for sharing your knowledge. Much appreciated! Cheers
     
  9. RealesateEveryday

    RealesateEveryday Member

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    I heard granny flat have a higher chance of attracting bad tenants. What are your thoughts on this?
     
  10. neK

    neK Well-Known Member

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    It doesn't matter what shape you buy, if you are creative, you can make it work.
    If you are simply using it as a buy and hold with a view to on sell to someone else (so they can develop in the future), then anything but a rectangle will impact the price.
     
  11. RealesateEveryday

    RealesateEveryday Member

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    Just to clarify on your last point. The impact on the price you meant was negative impact right?
     
  12. Sasim

    Sasim Well-Known Member

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    Hi,

    Not sure as yet - haven't tried to take it to market. I agree with NeK that rectangle is obviously the preferred but I am thinking if you are you seeing something in it that is attracting you, is that same thing going to attract someone else down the track?

    For us the +1000 sqm block was a well above average block size in the area, that was the attraction. We did unfortunately get caught out with a change of zoning rules just after purchase (negative change) - this is all in WA.

    Is this block offering more land than others in the area for the same price? Does the larger size allow you (or another developer) to do more with it? If you could get a rectangle block the same size for the same price then no real value ... sorry not being really helpful.

    Got to say the house on yours is MUCH nicer than our IP - yours looks likes it would be an easy cosmetic reno and stage. Do the figures work to keep existing home and put another out the back or sell the back block?
    :)
     
  13. neK

    neK Well-Known Member

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    Yes. Rectangle blocks are standard. Anything other than rectangle is substandard.
     
  14. Propertunity

    Propertunity Well-Known Member

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    My thoughts on this - absolute BS.

    You have a PM to vet tenants. The vetting process, if done properly, eliminates bad tenants for any property, not just granny flats.
     
    neK likes this.
  15. John_BridgeToBricks

    John_BridgeToBricks Buyer's Agent Business Member

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    Hi Realestate Everyday,

    Thanks for reaching out to the forum. Lots of good minds in this chat room.

    If you have any aspiration at all to develop, my suggestion would be to not purchase a property with a triangle shaped piece of land. It does and will affect your ability to get the most out of its potential.

    Property is expensive, and you only get a few shots at a develop-able parcel of land. This property will make your life more difficult, and it is just not worth the acrobatics of trying to get this to work for development when that time comes.

    Keep it simple, buy on a rectangular block if possible.

    Hope this helps,
    John
     
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  16. Aaron Sice

    Aaron Sice Well-Known Member

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    Wait - this in in WA? That aerial looks like something out of suburban NY state.

    Questions - what do you want to do with it? Are you wanting to subdivide? Are you wanting to extend and make a 3x1 a 4x2 then subdivide with the equity?
     
  17. sidharth

    sidharth Member

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    I'd avoid it. Its a lot of hassle to get council approvals. Sometimes even bank valuations come low and financing and CG will get harder in that case and defeat your goals. @john@bridgetobricks is very right in his observations.

    Do you know if there are easements on the lot, what kind of density is permitted, any noticeable fall on the lot?

    A friend of mine purchased a lot with a bad fall (bad research work)...2.7 m and no builder would touch it, except for custom builders who were asking for $600,000 to build a 30 squares house. That's the extreme case but there was also a standard corner block we tried to get a house built on and there too had few issues with getting approvals from council...builder had to do custom plan and that increased the price...Bank valuations came low due to a nearby transformer line...and so on...

    So, really hosts of issues in the game. Best is stick to stock standard and you can do much better, unless there are really good reasons for this buy.
     
  18. RealesateEveryday

    RealesateEveryday Member

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    Hmm you have a good point, a good PM would solve it
    Here is the property 9 Diane Close Pakenham Vic 3810 - House for Sale #128489658 - realestate.com.au

    I was thinking of buying and holding it, then developing 3 houses in the future when I have some cash
     
  19. Aaron Sice

    Aaron Sice Well-Known Member

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    Is it R3?

    Min frontage requirement, I think.
     
  20. RealesateEveryday

    RealesateEveryday Member

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    I am new to property investment. May I know what is R3? Thanks for your help
     

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