Weighing up size matters for WA homebuyers

Older property on a large block or a newer property on a small block; which to choose?

With both having their pros and cons, it ultimately comes down to your individual needs, according to The Agency Property Partner Jack Wormington and Realestate 88 Sales Executive Dane Craig.

“It is important for buyers to consider their long-term plans and how they live on a daily basis,” Mr Wormington said.

For Mr Craig, this consideration should extend to the idea of your new home as an investment.

“Buyers need to consider their plans for the next five years, how the purchase will impact them moving forward and potential resale value when considering proximity to amenities,” he said.

Buying an older house on a large block can be a risk when it comes to the structure of the home and pose the need for a lot of work where outdated design is concerned, but larger lots can provide a lot of opportunity for growth and development, according to Mr Craig.

“An older house can come with unexpected renovation and structural issue costs which can blow out, but on the other hand it has great potential to demolish and redevelop or potentially subdivide,” he said. “Depending on the location and size of the property, the majority of the value is in the land itself.

Mr Wormington said larger blocks were not solely tempting to investors, however.

“A large block allows space for growing families and provides more privacy,” he said.

While the continued reduction in size of blocks in WA’s newer estates might seem less tempting to homebuyers, Mr Craig said the smaller footprint had its advantages.

“A small block means lower maintenance – no need to spend your weekends mowing lawns and pulling weeds,” he said. “It can be the more affordable option and there are more location options to choose from.

“Of course it does mean that there tends to be less space between you and your neighbours and the home has a lower resale value compared to a large block of land.”

Mr Wormington said smaller blocks offered an array of benefits upfront.

“A newer home on a smaller block generally means the buyer can simply move in and do nothing, with minimal need for renovations and repairs,” he said. “However, a smaller block means less space for growing families.”

Mr Craig and Mr Wormington both said they had noticed a trend in buyers of different age groups and which way they leaned in relation to different types of properties and land size.

“First homebuyers tend to gravitate towards the more affordable option, which is a newer house on a smaller block, and the more experienced homebuyers are purchasing on larger blocks with the intention to ‘flip’ or create a ‘forever home’ to maximise return on investment,” Mr Craig said.

Mr Wormington said smaller blocks were appealing to downsizers, investors and fly-in, fly-out workers thanks to the low-maintenance lifestyle they offered.

“We are seeing families gravitating towards the older homes on bigger blocks so they can extend or renovate and have plenty of room for cars, boats, caravans, secure off-road parking, as well as workshops and sheds for various uses,” he said.

No two buyers are the same, with individuals having different goals and plans for the future.