Further to that , I had similar situation where I had an oddly shaped block ( with house ). Combining it with part of the neighbour's would've worked well . I suggested this to the neighbour but as Malaga said , he got stars in his eyes and wanted way too much.
So I passed on his offer and continued on with life.
8 years later , his place came on the market for the normal market price so I bought it . Even though I've had to pay current prices for the bit of land I wanted , my original place has gone up in value as well . So now I have the option of an extra block or selling both places to a developer down the track and realising the potential.
I won't make a motza out of it either way but I will make more than if they weren't adjacent to each other . It's just another way of enhancing your returns over time with a bit of observation and timing .
Coincidentally , the first property had become positively geared so I was looking to purchase another property when next door came up.
Obviously this strategy won't work for everyone but it's pretty low risk vs reward if you can time it right.
