zaph

Zaph's real estate adventures

327 posts in this topic

Place worth more with no house?

 

There's a block of land for sale at $499k near me - looks like it's never had a house on it in it's 35+ years since development. It's 600sqm, which is pretty standard for the area for the development time. But would now be considered a large block worthy of a 45 bedroom Mc Mansion. 

 

Thing is a 3-4 basic house would go for $450k in a condition that may require $50k to bring it up to 'liveable standard'.

 

Is a block of land really worth more than one with a house? 

 

It is if you prefer to build a new home rather than renovate an existing one. I've seen a lot of sold knockdown places over the years around my area, now with a new McMansion in place,

Share this post


Link to post
Share on other sites

Place worth more with no house?

 

There's a block of land for sale at $499k near me - looks like it's never had a house on it in it's 35+ years since development. It's 600sqm, which is pretty standard for the area for the development time. But would now be considered a large block worthy of a 45 bedroom Mc Mansion. 

 

Thing is a 3-4 basic house would go for $450k in a condition that may require $50k to bring it up to 'liveable standard'.

 

Is a block of land really worth more than one with a house? 

 

Demolition costs around 20k I've been told. The only other difference I can think of is taxation treatment... otherwise 50k seems a bit high if the blocks are essentially the same location and same size.

 

Edit: There's an excavator in almost every second street in my area. Demolitions are certainly in vogue.

Edited by Mr Medved

Share this post


Link to post
Share on other sites

Demolition costs around 20k I've been told. The only other difference I can think of is taxation treatment... otherwise 50k seems a bit high if the blocks are essentially the same location and same size.

 

Edit: There's an excavator in almost every second street in my area. Demolitions are certainly in vogue.

 

I think the vacant block is just way overpriced. 

 

No large scale knock downs in the area. There are a few small pockets of rail housing that is being gradually knocked down to build mc mansions, or higher density. 

 

My burb is surrounded by burbs/areas that were developed +10-15 years when the norm of housing changed from a 3-4 bed, 0-2 garage,1-2 bath to your typical Mc Mansion. So in my area there have been not many demolitions, but within the next decade I suspect the trend will be to replace the smaller houses with Mc Mansion's. But will it be by extension or demolition?

Share this post


Link to post
Share on other sites

The Property Features:

*Secured Guest Coat Room

 

If I was spending $4.8m on a house I'd assume my guests weren't going to steal each others coats after a dinner party. Either that, or I'd hire coat staff for my parties. 

1 person likes this

Share this post


Link to post
Share on other sites

"En-suite has double stinks"

 

Perhaps they could flush the loo before an inspection?

 

…unless 'en-suite' here refers to two turds in a row?

Share this post


Link to post
Share on other sites

Not a Zaph adventure but,

 

Have a relative who lives in regional Victoria. They bought an established house about five years ago. The vacant block next door is on the market now for almost exactly what they paid for the house; block is the same size. To me that is just absolutely nutty. Land is advertised for over 250k. What makes it even nuttier is there's a new estate down the road so one would have thought it would drag down prices... but alas, no.

 

Also was told that speculators dived into commercial real estate around the new hospital in Bendigo. Unfortunately for them health specialists don't want to be squeezed by high rents and have moved elsewhere, now rents are declining.

Share this post


Link to post
Share on other sites

Not a Zaph adventure but,

You're more than welcome to join my adventures..

 

Have a relative who lives in regional Victoria. They bought an established house about five years ago. The vacant block next door is on the market now for almost exactly what they paid for the house; block is the same size. To me that is just absolutely nutty. Land is advertised for over 250k. What makes it even nuttier is there's a new estate down the road so one would have thought it would drag down prices... but alas, no.

I've observed that a block with a basic, liveable house on it goes for pretty much the same as a vacant block - this is built suburbia. I'd expect regional areas to be a little different though. 

 

What's land in the new estate going for/asking? Perhaps they're dreaming at $250k?

 

Also was told that speculators dived into commercial real estate around the new hospital in Bendigo. Unfortunately for them health specialists don't want to be squeezed by high rents and have moved elsewhere, now rents are declining.

 

Not sure about specialists, but GPs tend to be 'anchor' tenants. Anchor commercial tenants tend to get low rent/good deals because they attract other tenants. 

Share this post


Link to post
Share on other sites

What's land in the new estate going for/asking? Perhaps they're dreaming at $250k?

 

Blocks about a 1/3 to 1/4 of the size are advertised at around $180k - and they are less than a quarter acre. So in that context it is not a surprise, but we're not talking urban fringe - we're talking regional area.

Share this post


Link to post
Share on other sites

There's a house in my street that's been advertised for rent for around 10 weeks. It's not the best house, but the asking rent reflects that - they may be asking a little too much but not hugely too much. I wonder why it's not renting? 

Share this post


Link to post
Share on other sites

Have a relative who lives in regional Victoria. They bought an established house about five years ago. The vacant block next door is on the market now for almost exactly what they paid for the house; block is the same size. To me that is just absolutely nutty. Land is advertised for over 250k. What makes it even nuttier is there's a new estate down the road so one would have thought it would drag down prices... but alas, no.

 

The place is still on the market (over 4 months later). No drop in price.

Share this post


Link to post
Share on other sites

The place is still on the market (over 4 months later). No drop in price.

People are really stubborn with selling prices. 

Share this post


Link to post
Share on other sites

A place around the corner that I looked at when I bought my place is up for sale again at $585k+. Sold for $425k 06/11.

 

The only improvement is to the description - the downstairs bench is now described as a second kitchen. Bad Engrish is still the go... " 2 multi-function rooms spit over both floors"

 

I haven't been following RE prices that much lately in my burb, but this seems ~$50k+ overpriced. 

Edited by zaph

Share this post


Link to post
Share on other sites

"generous bathroom upstairs has a shower"

Wow! A bathroom with a shower - that's going to make me buy it.

1 person likes this

Share this post


Link to post
Share on other sites

There's a house in my street that's been advertised for rent for around 10 weeks. It's not the best house, but the asking rent reflects that - they may be asking a little too much but not hugely too much. I wonder why it's not renting? 

Another two weeks and still not rented - that's gotta hurt the LL. It was put up for rent while still occupied, so has probably been empty for around two months. The front is starting to look (more) overgrown. 

 

They've dropped the rent from $410pw to $395. Lazy agent - no inspections scheduled? Or dumb ass owner?

 

Last sold  12/2010 for $385k. 

 

If I had the means I'd offer to take the property off their hands for $350k. Spend a few grand and a couple of weekends on the garden and sell it for $425k or rent it for $430pw. 

Share this post


Link to post
Share on other sites

Another two weeks and still not rented - that's gotta hurt the LL. It was put up for rent while still occupied, so has probably been empty for around two months. The front is starting to look (more) overgrown. 

 

They've dropped the rent from $410pw to $395. Lazy agent - no inspections scheduled? Or dumb ass owner?

 

Last sold  12/2010 for $385k. 

 

If I had the means I'd offer to take the property off their hands for $350k. Spend a few grand and a couple of weekends on the garden and sell it for $425k or rent it for $430pw. 

Still vacant. Now $390

Share this post


Link to post
Share on other sites

I like to browse the property ads in the local rag. Many agents don't have English as their first language and therefore the copy can be amusing at times. 

 

"exquisite conundrum" to describe a house?

Share this post


Link to post
Share on other sites

I like to browse the property ads in the local rag. Many agents don't have English as their first language and therefore the copy can be amusing at times. 

 

"exquisite conundrum" to describe a house?

 

Sounds like an extract from one of the chinglish joke emails I get from time to time.

Share this post


Link to post
Share on other sites

When I bought this place I went for a largish 4 bed so my sister and niece would have somewhere as well. She immediately shacked up with a bloke. She paid some rent for a year and only stayed here a few nights - the best flatmate I never had!

 

Thinking of selling and buying something more suitable for a single. I've been renting out the spare rooms and are sick of it.

 

I've seen it all...

  • A guy who stayed a week and then vanished, leaving all his possessions here. I suspect he may be at the bottom of the Brisbane river.
  • A Christian girl who quit work to go to bible college - Hillsong. She moved her BF in. God did not provide the rent money. There were enough condoms in the room after she left to keep Australia's population growth negative for decades. 
  • A guy who wanted to rent the room for a few hours for a quite place to do a job interview.
  • A guy, his wife, and two adult kids who wanted to rent a room. Yes, one room with a single bed.
  • An English couple who left a $50 deposit and then called a couple of hours later and had decided they were going fruit picking in Darwin. 
  • A girl who was busted by another flatmate phucking on the lounge (I admit that is not the first time that lounge has seen action!)
  • Various non payment of rent and excuses

It's not all bad. I've had some good tenants. I currently have a long-term Indian guy, and more recently his cousin and his wife. They are excellent. The long-term Indian guy stresses if I'm not home on rent day. He's normally knocking on my door at 4am after his taxi shift to pay rent! The recently arrived couple are straight off the farm and not very western. They both watched the washing machine for it's entire cycle the first time they used it - amazed how you can clean clothes without a river or a rock. She was very impressed with the electric broom. He's a trolley boy and she says she's doing an MBA. But I've seen no evidence she is studying and her English is so bad I don't see how she could be studying. Their English seems to be textbook rather than experiential. I was dressed for dinner (and aftershave) - he told me I looked gorgeous and I had a nice odour. 

1 person likes this

Share this post


Link to post
Share on other sites

I currently have a long-term Indian guy, and more recently his cousin and his wife. They are excellent. The long-term Indian guy stresses if I'm not home on rent day. He's normally knocking on my door at 4am after his taxi shift to pay rent! The recently arrived couple are straight off the farm and not very western. They both watched the washing machine for it's entire cycle the first time they used it - amazed how you can clean clothes without a river or a rock. She was very impressed with the electric broom. He's a trolley boy and she says she's doing an MBA. But I've seen no evidence she is studying and her English is so bad I don't see how she could be studying. Their English seems to be textbook rather than experiential. I was dressed for dinner (and aftershave) - he told me I looked gorgeous and I had a nice odour. 

Immigration:

 

Not sure how the taxi driving tenant got residency.

My parents have an Indian tenant in their granny flat. She got in by being a vampire (phlebotomist). She says it's common for Indians with a degree from the Indian Kelloggs uni to get into an Australian uni for a higher degree. That gives them a couple of years to tick all the boxes and work on a permanent residence application. They pay an immigration agent to coach them. 

Share this post


Link to post
Share on other sites

The taxi driver boarder is trying to get me to pimp out a friend or relative so his cousin can get residency. A sham marriage is worth around $20k apparently. A full-service package would be a lot extra I imagine.

 

I offered. It was immediately declined. Seems that even in the world of sham marriages the Indians have standards and won't accept a sham homosexual relationship. I might have to reduce my asking price if I want to make money from this scam. The benefit is you get an indentured servant for two years before they can leave you. 

Share this post


Link to post
Share on other sites

The taxi driver boarder is trying to get me to pimp out a friend or relative so his cousin can get residency. A sham marriage is worth around $20k apparently. A full-service package would be a lot extra I imagine.

 

I offered. It was immediately declined. Seems that even in the world of sham marriages the Indians have standards and won't accept a sham homosexual relationship. I might have to reduce my asking price if I want to make money from this scam. The benefit is you get an indentured servant for two years before they can leave you. 

 

Wouldn't a same sex de facto partner visa application be easier to get? Otherwise it could be seen as discrimination.

 

You need to have been in a relationship for 12 months before applying, though. So it means 3 years of conjugal duty before permanent residency can be awarded.

Share this post


Link to post
Share on other sites

Wouldn't a same sex de facto partner visa application be easier to get? Otherwise it could be seen as discrimination

Might be. You're picking on me because I'm black/gay/woman/etc card can pay off. I doubt it when it comes to importing a partner. Gay, or straight, a piece of paper certifies a relationship. For Australians that easy certification for homos is not available atm. 

 

A friend genuinely got his BF residency based on their relationship. There was a lot of proof required, and being social media whores it was easy. He got me to write a 'reference' about their relationship to add to the folio he needed. 

 

You need to have been in a relationship for 12 months before applying, though. So it means 3 years of conjugal duty before permanent residency can be awarded.

 

From memory with my experience of my friend there needs to be a sexual or romanic relationship for poofs. Getting a girl in for a hetro only requires a promise of marriage. I defintely remember that hets can import a partner without ever having met them. Not available for gays. 

Share this post


Link to post
Share on other sites

Enough bitching about boarders, for now....

 

I haven't been following RE prices in the area but I reckon they've jumped another 10%. So 20% increase in five years. I'm rich! Where's my doubling every 7-10 years? 2-5 years and it will happen. 

 

What hasn't changed is rents. The area still has cheap rents and a yield below 3.5%. Unless capital prices double next week it's a pretty sh*tty investment in my area. 

Share this post


Link to post
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!


Register a new account

Sign in

Already have an account? Sign in here.


Sign In Now