Hi Guys,
Just starting out doing some research for first investment property. I can see at least one advantage of buying a corner block, being that it has 2 frontages, especially if it is large enough to sub divide or develop. Can anyone tell me if the sale price on a corner block is usually higher than a regular block with one frontage. Are there any other benefits of a corner block, or red flags to watch out for.
Cheers,
Hi THGH,
The short answer is, not always! Corner blocks are not necessarily priced higher. Sometimes if the real estate agent is on the ball and its a growth area ripe with developments everywhere they will highlight the corner block for development and market it that way specifically with a higher price tag. Sometimes, however you can get a corner block for the regular price of any other similar sized block in the area.
I looked at a corner block recently in Ipswich. My dad and I were looking at it for what appeared to be a fairly simple sub-division… (as simple as they come for rookies anyway)
As you would expect, the price was slightly higher than other neighbouring houses (with comparable characteristics, condition, and configuration).
But when I checked with the council though about the possibility of sub-dividing, they advised me of two potential problems.
1. The size of the block was 850sqm… Ipswich council prefers to make blocks a minimum of 450sqm…. that's not to say that it couldn't be done, or that they would definately reject it, but it is another point in the 'risk' column.
2. While it wasn't shown on the plans I could muster, the council indicated a major storm water elbow travelled right under the 'back yard' which would need to be relocated before approval for any dwellings could go up (and possibly before they approved the sub-division)…. I don't even know how much it would cost to dig up and relocate a council storm water drain, and I dare say it would have been quite off-putting to potential buyers had I left it there…
We figured that for our first sub-division we probably didn't want to take something like that on, even if it turned out to be cost effective, so we didn't take it any further.
My point is, if it is a corner block and the sale price is increased to highlight the 'development potential'…. that doesn't necessarily mean it's viable to develop or sub-divide that particular block.
There may be other advantages though…
e.g. If there is a garage connected to the house at the front, you could possibly turn it into another living space, rumpus, or bedroom without too much hassle. But the benefit of a corner block is that you still have access and space for a double lockup in the back yard with alternate street access… You could even put a carport out the front to double your parking, and increase your floor area for considerably less cost than an extension.
Unfortunately, the example I was considering above had none of these things.
One disadvantage though, is that you'll be hard pressed finding a private space in your back yard that isn't 'overlooked' by passing traffic (foot and vehicle)… which means pants become mandatory at all times… that would definately be off-putting to some of the tenants I have had before, and likewise the value of the street ; )
Hey Grimnar,
Thanks for your response, I was aware there are minimum subdivide quotas in ipswich and that they like a minimum 900 block. Just looking at getting in on the ground level before Ipswich turns into Brisbane, and people subdividing any property above 809m. Pleanty of large property’s still left in ipswich but I notice that all the new houses are on only like 500m blocks. Me thinks maybe in 5 years blocks of 1200-1500m will be hard to find. let alone cheap ones.
In Melbourne outer suburbs small apartment blocks (under 12 apts) are going in on blocks sized around 900sqm. Inner suburbs are getting them on 700-800sqm. Buy up all the land. It doesn't matter if you don't do anything on it, it just goes up. Crazy days we will be living in.
D
DWolfe | www.homestagers.com.au
http://www.homestagers.com.au
Email Medont put aside mid st blocks. I was lucky enough to pick up 2 places back to back.. ! 2024 sm total, we can subdivide to a battle axe with dual occupany in the middle block easliy as we have 4.5-4.7m from the side boundry to the eaves… our council has a min of 3.5m for driveways on battle aex so its a no brainer. the min block size is 450sm but 650 for a battle axe blk so we can onlhy get 3 blocks but we can do dual occupanies so its 4 rents for price of 2 plus building
Never thought I would score a deal like that
)) but i did just by checking out all the properties for sale even after I had palced the 1st offer, naturally didnt tell the agent I had secured 1 blk hahahhaa the 1st agent knew as he was family friend as was thrilled we got a break
and I am just an average investor.. these bring my total to 5 so hang in there…. it will happen for you too if u believe it in
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