I was doing due diligence on a property i want to buy. It is a run down fibro house on 650+ sqm 10 minutes walk from station.
I was reading some websites and have discovered there is a DA currently at council to build 3 substantial unit blocks near by ( within 4 streets ).
This area has had no other unit blocks built to date so i was mulling over wether this could be viewed as a good thing or a bad thing.Good :- Shows there is high interest in the area if private developers feel the need to develop large unit complex. Would the value of your house rise given there is less and less land available in the immediate area as unit complexes go up.
Bad :- Could a large unit complex several streets away be viewed as an eye sore and actually depreciate the value of your house.
Looking deeper into the DA’s i see the proponent is ” housing NSW “. Which im guessing means, housing nsw is party wishing to build the units which would mean they would be all housing commision units ?
Which if the case i would view the unit complex’s as depreciating surrounding houses value.so in short
1) Unit complexes building up around your IP good or bad ?
2) If the unit complexes were housing commision good or bad ?
3) Does the term proponent on DA’s mean the party that lodged the application and wishes to build the houses ? In this case housing NSW ?
Thanks guys.
Does the property that you are looking at have the same zoning as the unit blocks? If so if you could also purchase neighbouring blocks, you could be sitting on a gold mine. Then you get a DA and find a developer to buy it off you.
Marshes,
as is usually the case, the answer is 'it depends'. If the proposed unit blocks were 'luxury apartments', meaning of a highers standard than the existing, presumably older properties in the area, then that could lift values. I have seen this happening in the area where I live. Three new unit/townhouse developments in the street, RE agents claim this has lifted property values by about 15% in the last 12 months.If, however the proposed unit blocks are indeed housing commission blocks, then that would most likely not have a positive effect on property values in the area. Why don't you find out from the council if they are indeed housing commission, what the zoning is, if the council is planning to change the zoning on your property in the future, and also if you can object to the proposed development. That way you know what your options are.
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