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Value of battle-axe block on one title vs separate titles

Discussion in 'General Property Chat' started by Excalibur1, 19th Sep, 2016.

  1. Excalibur1

    Excalibur1 Well-Known Member

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    Hi all

    Just wanted to see what everyone's approximates are around this.

    A block of land that was split to look like battle-axe, both houses have their own titles
    vs
    A block that is like battle-axe but both houses are on one title.

    I know you can get more if you sold with separate titles, but just wanted to see how much you would be loosing (%) if you sold them as one title?

    Cheers
     
  2. thatbum

    thatbum Well-Known Member

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    Anywhere from nothing to maybe 50%.
     
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  3. bashworth

    bashworth Well-Known Member

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    At a minimum, the cost of a subdivision.
     
  4. Jess Peletier

    Jess Peletier Mortgage Broker - Australia Wide Business Member

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    Add to that the reduced pool of potential buyers - not everyone wants to buy two houses, so by keeping them on one title you're ruling out everyone who just wants one house.
     
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  5. Excalibur1

    Excalibur1 Well-Known Member

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    Thanks for the feedback guys! :)

    I have thought you would get around 25% less than if it was separated. As @Jess Peletier suggested its eliminating a large pool of buyers too. Best is to keep it as it is until its time to sell. Then do subdivision :)
     
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  6. Azazel

    Azazel Well-Known Member

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    Yep, when I see them for sale I assume there's a reason they haven't already done it themselves and move on to the next one.
     
  7. sanj

    sanj Well-Known Member

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    You are asking a question that is impossible to answer with any accuracy whatsoever
     
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  8. Scott No Mates

    Scott No Mates Well-Known Member

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    Yes. No.. Maybe?
     
  9. Azazel

    Azazel Well-Known Member

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    Sounds like a song or something...
    Still worth having a discussion about it to get some more ideas.
     
  10. Connor

    Connor Well-Known Member

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    If looking at purchasing a battle axe property with 2 dwellings on the 1 title, it'd be a good idea to check that both dwellings are seperately metered for electricity, water etc, and that the correct infrastructure is in place for a straight forward subdivision..
    While this is usually the case, as is generally required by planning permits, I've come across a few older buildings that this has not been done, hence doing a sub div for sepraerte titles would have been a huge expense.
     
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  11. Excalibur1

    Excalibur1 Well-Known Member

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    Thanks for the feedback. I'm not after exact figures... just wanted to see what best guesstimates are. I think its good keeping it on one title until it's time to sell. I just wanted to see out of curiosity how much of a difference it would make.
     
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  12. willair

    willair Well-Known Member Premium Member

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    It would be hard to work out depending on the site -land area-zoning,but i get letters each month from companies that show how much more title holders get value after tax wise dollar wise if they sell large blocks that are ready split on the title with the house in the middle of the title plan,that's what developers target and pay a high price..
     
  13. New Town

    New Town Well-Known Member

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    If you were to keep there is probably a saving on rates, water, and insurance having the one property with 2 houses compared to the 2 separate lots? Not sure.

    If selling both it would definitely be better to have separate lots.

    Though as a land use I almost prefer a granny flat than a battle axe block house?
     
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  14. theperthurbanist

    theperthurbanist Well-Known Member

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    Who would approve a subdivision (or mores the point endorse the deposited plan/issue titles) that resulted in two lots with half a house on each? Or have I missed something...
     
  15. theperthurbanist

    theperthurbanist Well-Known Member

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    Also worth considering that if you want to refinance/draw down equity the bank will almost certainly value your assets higher if subdivided as two lots.
     
  16. willair

    willair Well-Known Member Premium Member

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    That's what they did in inner Brisbane in the 1950's -1960's,812sqm's are split into 2 street number's on the title but with the house sits in the middle of the title plan,a lot of the older inner southside titles from west end too moorooka were set like that ,hard to find now ..
     
  17. theperthurbanist

    theperthurbanist Well-Known Member

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    Ha! Classic. Good luck trying to do that these days (at least in WA). You could possibly get the subdivision approved but one of the conditions you would need to clear before titles were issued would be sorting out the house split between the two lots.
     
  18. willair

    willair Well-Known Member Premium Member

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    What most people do with blocks like the ones i'm talking about is,they level the house within 48 hours and sell off the blocks,some make a very good after tax living off a simple system like this..