I’m looking at the potential of building an investment property. Simple formula really
:resale value is higher than ( land + building + landscaping costs + associated sale fees + building and selling time interest payments).Because of the scarcity of land, anything flat in a new subdivision or main street frontage is selling for ridiculous amounts, and there is little or no potential for any capital gain on the resale. Therefore, I’m considering a flat battleaxe block that is selling for a nice price. There’s a nice private road for about 30 metres, opening into these two flat battleaxe lots.
Does anyone have any experience or knowledge to impart on battleaxe lots in general?
Do they achieve comparable resale to main street frontage lots?
Do they take longer to sell? Do they sometimes not sell at all?I’m realistic, and I know that to I would achieve a higher resale price for the same house and block if it were on the street frontage, and it make take longer to sell…But to what scale? 10% 20%.. half the price. Is there any general rule of thumb?
It’s very hard to get unbiased opinions from realestate agents, so I thought I would come here to ask.
I’d appreciate any thoughts or opinions. Can I also politely ask that if someone plans on simply posting, “don’t do it, it’s a stupid idea”, please explain their reasoning. Thankyou kindly in advance.
Hi zopm
All I know is that they have different building requirements. They can be problem matic to subdivide / develop.
If you are in Perth check out the R-Codes – email me and I will email you a copy. If you are in another state search for “building codes (state)”
Celeste
I have heard from real estate agents that battleaxe block properties are similar to busy road properties in that they are harder to sell, and buyers will pay less than a comparable property in a quiet street with a street frontage.
However, having said that, they should also be cheaper to buy so as long as you pay less than for a similar property with a frontage, and as long as you keep in mind that when it comes time to sell you will have less people prepared to buy, you should be okay.
We plan to divide a block into a battleaxe arrangement, and know that we will be faced with the same issues down the track, so will bear this in mind when we do our homework.
The other issue is that with battleaxe blocks there are more stringent privacy and overlooking issues if you want to build but a good architect or designer should be able to design specifically for your block and overcome these issues.
Wylie
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