Hi everyone,
I am a first home buyer in ACT and have been house hunting for a while. I have seen houses in one particular situation, which one side of a house is built right on the boundary with next door. To put it simple, neighbours could use a ball to hit the wall or they could put a clothes line on the wall.
I would like to know whether this kind of situation will reduce the house value if reselling in the future? Thank you for any inputs.
PS: real estate agents still call this kind of property is a free standing one because two properties are on separate lands and have no common walls.
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This topic was modified 7 years, 5 months ago by
happygirl.
I would like to know whether this kind of situation will reduce the house value if reselling in the future? Thank you for any inputs.
The current situation affects the current price and unless changed, I dare say it will affect the future price as well. The above is true for pretty much every situation.
In other words, you’re buying it relatively cheap now due to the above and you’ll probably sell it relatively cheap due to same.
Hope this makes sense? 👍😎
Ethan Timor | Aligned Finance Pty Ltd
http://www.alignedfinance.com.au/
Email Me | Phone MeActive Investor & Broker; Based in Northern NSW, servicing Australia wide; Author of '34 Proven Ways to Maximise Your Borrowing Power' (download free from our website)
Hi Happygirl,
This sounds like a Duplex to me. These are reasonably common and yes, their value is lower than a house that sits alone on a block. There are a few savings made to build them, the land sizes are typically smaller, thus they are lower-priced.
I think a Duplex is less marketable than a house – so reselling would be to a smaller buying group. Not everyone wants to live so close to their neighbour !!
Ethan has made a very salient point there.
Benny
Hi Ethan,
Thank you for the points and I will avoid this kind of situation. I will keep your points in mind.Hi Benny,
The situation is still called a free standing house not a duplex one because two properties don’t share a common wall and the building type is “detached house” in a property report.Another situation is the gap between two walls from two separate properties could be less than one inch. I asked a friend and was told this could have something to do with zone in ACT.
Thank you again, Ethan and Benny.
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This reply was modified 7 years, 5 months ago by happygirl.
Hi Happygirl,
Another situation is the gap between two walls from two separate properties could be less than one inch.
Hmm, I have never heard of or seen anything like that, but then I am not familiar with Canberra. Perhaps @jamie-m can shed some light on this?
In wondering “Why” this could be, are these perhaps built on really small blocks – like 300m2 or less? It might be one way to maximise urban in-fill. And the local Council gets to charge a second lot of Rates from the same 600m2 block. Nice !!
If they are really small blocks, then just keep in mind that it is the LAND that goes up in value over time, while houses depreciate in value. As such, a small block won’t gain in value so much, thus affecting its resale value just as Ethan had warned.
Benny
PS But then, much of Canberra is Leasehold land isn’t it? So will the “land value” be impacted as much as it would if Freehold? Hmmm – hollering…..Jamie !!!!
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This reply was modified 7 years, 5 months ago by Benny. Reason: Adding the PS
Currently there are some blocks selling in Throsby (Canberra’s Gungahlin region) that are 250 sqm. I have also had customers put a 4 bedroom home on a 315 sqm block. But then again they are paying around $1000 per sqm just for the land.
Tim Mardiyants, MBA, DipProperty (Agency Mngt) | BLOCK Real Estate - Canberra
http://www.blockrealestate.com.au
Email MeSales. Property Management. Buyers Agent.
Seek advise – I’m planning to sell my investment property and buy another investment property. The first IP has a capital gain, can I transfer the capital gain to the second one so that I don’t have to pay the CGT in the current financial year. The second IP, I’m planning to buy is around 450K which is about half the value of the first. Any idea if this can be done?
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This topic was modified 7 years, 5 months ago by
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