Hi, all,
I am new in the property investment. I am in the process of purchasing a block of land or 2. But donot know what to do?
I saw blocks in a new development area, there are duplex blocks, cottage blocks and large blocks. I assume duplex block $160k, cottage block $120k, large block $140k. I was thinking buying a duplex. But after talking to the builder, I found it might not a good idea (from profit point of view).
Can you please use your experience to give me some advice: 1 duplex or 2 cottage blocks or 2 large blocks?
Very much appreciated!
Hi,
I think the terms being used to describe the size of block are a marketing use of those terms and so may be a little misleading.I think what is termed a “duplex” block is old-school property talk to refer to a block that is 800 – 1000square metres, large 600-800 and cottage 300-600. These are just sizes I’ve picked up in my research. The actual allowed usage of the block has nothing to do with the names (it used to is some places) and I think you’ll find they all come with a covenant saying “one residential dwelling only”. Having said that, in general teh more land you’ve got the better. That is only in general and doesn’t take into account your particular needs or use.
To work out which will grow in value better for your time frame you’ll need to know what the local demographic wants. If it is near hospital and or university then a smaller block is probably going to return faster. If it is in a fairly well developed location with family homes a larger block may be better.
You’ll have to go over those details yourself.
I would also ignore those terms and look at the land size and ask the local Council myself. For example, a “duplex” block is not a duplex block unless it is approved by Council. Approval is never guaranteed!
TMA
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First Home Buyer WebsiteThanks TMA and Surrey.
It is in a new development area. Duplex – you can put two on it (even it is a small block 550m2). A cottage block is 300-400m2 with lane way access. Traditional – you have another house oppoiste your backyard.
They do have some differences – that is why I seek some advice – which way to get better return (profit?).
Thank you for more advice. I really want to buy one on the new release.
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