Quote:
Originally Posted by Oleophobic
Just wondering how this works for duplexes in which are generally set up like two halves of a house on the same plot of land? Would the developer treat it as two separate properties and apply the multipliers (1.7x-3x to use your examples) to each halves' assessments?
For example, I live in a duplex in an area where developers have taken an interest in the past and its possible something could happen on my block. But my half of the duplex is assessed at $1.3M (2k sqft because 3 floors) and my neighbour's half is essentially the same. The total land size is that of a standard Vancouver lot so it seems to me a developer would be paying double what they would pay if it was just a detached house (one property) instead of a duplex (two properties) on the same lot?
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It's never just a slot or 2 in particular. You see the whole project with everything involved to derive the valuation and then split the share. And it's usually just the land that matters, building would have some valuation, but basically next to nothing.
IE: say a developer wants to buyout the entire block consisting of 10 duplexes for a total area of 15,000sqft (that's the total lot size) and their FSR is 3.4 after factoring the green space, public road... etc, it means that the developer can build something that's 15,000*3.4=51,000sqft on 4floors.
So, they aren't going to pay you 3x the money because it wouldn't make financial sense. They still have to take profit, construction cost... etc etc.
So, 1.7 in this case seems about right to me and that'd be the bottom line give or take a bit.
But if the FSR is 30... meaning a high-rise of 30+floors, then 8-10x valuation is justified.