Hi Guys,
I have just bought a block of land that I plan to divide.
Has anyone got a sure fire way of determining a value for the blocks?
Is there a web site where you can find out the land value per sq mt?
The block is in Preston Melb.Thanks in advance
FrankThe way one values land is its residual value when put to its highest and best use.
In other words if you can build 3 dwellings on it, its worth more than if you can only get 2 units on it.
As opposed to houses, which are valued using he comparable sales method- comparing it to other similar sales and allowing for the differences.
On the other hand commercial property is valued by its yield amongst other things.
No there is no web site that I am aware of that will give you the values of “land” – you have to do your homework
Michael Yardney
METROPOLE PROPERTIES
Author of Australia’s leading property e-magazine.
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FREE subscription http://www.PropertyUpdate.com.auAs M.Y points out there are many ways to value land especially its potential yield.
There is also the location factor, a 100 lot rezoned subdivision in a major CBD location will have a higher value than the same 100 lot subdivision in a country town.
Supply and demand also plays a huge part, you must build what is in demand for that area or you can lose your shirt.
Yes commersial property is valued on yield so why shouldn’t residential property be valued the same, would you buy a property yielding 2% when you can buy a small commersial office suite yielding 7%.
Too many people IMHO are focused on residential, you should ask your self “how much can i afford” and “what else can i do that could give me greater returns”
Use the rule of 72.
D
Hi Guys,
I spoke to the land valuer at the council and he was able to give me a value.
The block has an easement running through it and it apeared undervalued, after speaking to the valuer He filled me in.Thanks for your input
Frank
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