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DIFFERENCE BETWEEN A BIGGER PROPERTY VS A SMALLER ONE

There are selling advantages and disadvantages to buying a larger sized property over a smaller sized property.

Please note, the price of the property is not being evaluated here. This is purely what the size of a property will do for your sale price when you go to sell or buy.

Say you find a property that is on a 700sqm2 block of land. The property is lowset. The second property you look at, is a double storey property on a 400sqm2 piece of land. In five years time, which property will have increased in value (in the right market)? 

The 700sqmproperty. 

It does not matter if the house on the smaller block is newer. The actual property itself devalues overtime. The land is what increases the property's value. The more land you have, the higher the chance the property value will increase at a higher % over time. 

In new estates, you will find that property land sizes are smaller and closer together. There is a reason for this- the builders make more money by slotting as many houses as they can in. The idea is that they have provided local parks and green areas nearby, so you do not need a back yard.

Many Australians are now finding that having a back yard is a luxury. A back yard is great or entertaining. You have space for a pet to run around in, or even sit outside and read a book, or look at the stars with your child at night. It especially suits the Aussie BBQ dinner past time.

Other benefits of having bigger land is less noise from the neighbours when there is space, and less household stress as you can literally relax outside. If you do want a backyard, you can have a larger, more spacious sized rooms inside.

Not only is lifestyle at play, when the time comes to sell you can be thankful that your land valuation will be higher than the small toilet block that sits across from you. Although it is always best to not buy the biggest block in the neighbourhood. Do look for good sizeable land, to ensure you get a higher yield when you do decide it is time to sell.

Found the perfect place to buy? Call our awesome team at Australian Mortgage Managers on 1300 799 266 or email: This email address is being protected from spambots. You need JavaScript enabled to view it.

 

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