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Which property is better???

Discussion in 'General Property Chat' started by dan2101, 25th Sep, 2015.

  1. dan2101

    dan2101 Well-Known Member

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    Hi all,

    Just a general question. I've looked at 2 properties. Same suburb. Both good streets. Roughly the same price. Same condition. I'm stumped as to which is better.

    Property one is 3 bed, one bath, double lock up garage on 750sqm block.

    Property toe is 4 bed, 2 bath, double lock up garage on 450sqm block.

    So is property one better as it has higher land value and can add a 4th bed and ensuite later.

    Or is property 2 better as this has already been done.

    I'm thinking the bigger block of land but thought I'd check with the experts!

    Thanks
     
  2. dan2101

    dan2101 Well-Known Member

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    Also forgot to mention the 4 degree on will obviously rent for slightly more.
     
  3. Big Will

    Big Will Well-Known Member

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    Where is the house located on the 750m2 property? If it is at the front or back you can always subdivide it if you are willing to put the work in.

    Also remember land appreciates buildings depreciate.

    Myself personally I would go for the 750m2 property if they are two houses side by side, however without knowing the area or location to infrastructure this is an uneducated choice.
     
  4. Leo2413

    Leo2413 Well-Known Member Premium Member

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    All things being equal i would go for the 3 bedder on 750sqm. If you can add a bedroom then even better. It seems that larger blocks (in that area) don't attract a premium in sale price at the moment? that could change in the future which would be a nice positive for you. If you can negotiate the price down the i would try if you haven't already.
     
  5. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    No enough information.
    How much are these properties to give some indication of build/land component.
    Are they level blocks, with good orientation?
    Is the bigger land going to be develop able in future?
    Where is it, do people like mowing big lawns?

    If the bigger land is of no better future potential, I'd go the bigger dwelling with higher rent.
     
  6. TMNT

    TMNT Well-Known Member

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    i think the suburb will be the ultimate deciding factor
     
  7. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Depends on your investing style/personality too.
     
  8. Leo2413

    Leo2413 Well-Known Member Premium Member

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    Its the same suburb. ;)
     
  9. sumterrence

    sumterrence Well-Known Member

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    i would ask you what so good about each property? ask yourself why does property 1 worth this much and why does property 2 worth this much, write them down and comparer side by side, whichever the list are longer go for it
     
  10. dan2101

    dan2101 Well-Known Member

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    Cheers guys.

    Property on the 750 is in the middle of the block. I do like a Reno so could add a room down the track. Definitely leaning towards the bogger block bit will depend on price.

    Shhhhh Leo! Too
    Much competition on here! Are you psychic or what haha!?
     
  11. dan2101

    dan2101 Well-Known Member

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    Both level blocks. Price under 400k. Neither is an amazing deal but for the price and rent can't really go wrong with a long term hold I feel.
     
  12. York

    York Finance Broker Business Member

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    Based on info provided I'd go with bigger block house. I'm assuming the houses are roughly same age. As mentioned above buildings depreciate and land appreciates. Depending where this is, small 450 blocks are becoming popular thus plentiful. Old style bigger blocks are becoming more and more scarce. Not saying right now, but eventually 750 size blocks will be highly sought because of potential. Where as 450s will always be around and there will be more and more as new sub divisions are built. Like I said earlier depends on where this is too. Just my opinion
     
  13. EN710

    EN710 Well-Known Member

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    Bigger block if that's an option
     
  14. Rixter

    Rixter Well-Known Member

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    Contrary to popular belief and misconceived information being spread around Houses, Villas, Town houses, Apartments or Land size etc etc are all purely a commodity being marketed.

    Ultimately capital growth comes down to the supply and demand ratio for that particular commodity that pushes prices.

    Otherwise a 750m2 block in Frankston would be the same value as same size block Toorak and that's why you also don't see one only particular commodity outstripping all others.

    Hope this helps.
     
    Last edited: 25th Sep, 2015
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  15. FireDragon

    FireDragon Well-Known Member

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    If they are in the same suburb and for long term hold, I will go for the 750sqm one. I am not sure the location of the properties but if there is a zoning change or minimum lot size change in the future, you have higher chance of building townhouses or subdivide the land with the 750sqm one.
     
  16. Ace in the Hole

    Ace in the Hole Well-Known Member Premium Member

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    Everyone seems to be saying go the bigger block, but what if there is no re-zoning in future.
    Wouldn't it be better to take the better house on the smaller block to get a higher rent now, guaranteed?
    This higher rent can offer you more opportunities sooner rather than later.
    Get on that exponential curve ASAP.
     
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  17. FireDragon

    FireDragon Well-Known Member

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    Yes... there is no guarantee about re-zoning... but the OP said the 4 bedrooms one can only rent for slightly more... so I will take the risk in this case... I may change my mind if the 4 bedroom one can rent for a lot more :p

    Edit: I meant no guarantee
     
    Last edited: 25th Sep, 2015
  18. Rixter

    Rixter Well-Known Member

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    Exactly...ultimately what & where to purchase (purchasing criteria) is determined by one's pre-determined investment strategy.

    If you dont what you are looking for all property looks the same - thus the confusion.

    It's the #1 mistake newbies and sometimes not so newbies make.

    Food for thought.
     
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  19. Leo2413

    Leo2413 Well-Known Member Premium Member

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    rezoning isn't the only thing imo. Many families looking to buy in the future may want a home that has larger land for kids to play, pets etc and are willing to pay a premium for it. It also has an emotional impact on buyers that the place is bigger so its better, worth more etc. This does count.

    All things being equal, to me its most likely the larger block will yield a better result, regardless of someone's strategy etc. Price is similar the OP said anyway.
     
  20. Big Will

    Big Will Well-Known Member

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    Everything has to do with supply/demand and picking Frankston compared to Toorak is two different products. The OP was talking about two houses in same location.

    Land has a finite supply where as buildings can be infinite.

    You cant add more land in Toorak (or whichever suburb/town) but you can always add more apartments.