My house was rezoned to build five story apartments (17m high), a devolper is interested in buying my house and my neighbour's, should I sell now or not sell but cooperate with the developer to take more profit from the development?
Any other suggestions? Many thanks.
I would say if you are happy to sell if the price is right i would get in touch with your neighbour and strike an agreement with them first before you do anything legal wise with the developer ie you agree with the neighbour on X amount each and then sell as a job lot for a premium to current market value.
As big money is involved do not trust anyone at face value and get a good lawyer to protect your interest.
Marty McDonald | Mortgage Experts
http://mortgageexpertsonline.com.au/
Phone MeI would suggest getting an understanding of the profit potential of the development. House and land value means nothing any more, you need to think of its value to the developer. Is the offer at a significant premium to what a standard house in the street was worth before rezoning? Are they offering you cash settlement or an option?
If one developer is interested, there may be many that are interested. You could get a number of them to submit offers and select the best one.
According to me, investing in any real estate businees is one of the best resource of investing money, isnt that true?
Remember that there are two parts to the equation – offer and acceptance. Make sure that you are adequately compensated for the sale but not at the expense of losing the deal and locking your site out of any future development. Which area are you located? There are plenty of threads on selling development sites.
Greed can turn to fear very quickly….
The only questions you should be asking yourself are "Do I want to sell? If so, for how much?".
People seem to get carried away when a developer knocks on their door for some reason.
You might consider using your land (properly secured) as equity in a JV project.
Keep your neighbour in the loop – two blocks will be more beneficial to the developer and also, by extension, you.
I have also seen instances on the Gold Coast Broadwater where someone didn't want to sell. His neighbours on both sides and behind did and the property is surrounded on all sides with 5 storey building. Not a good look I tell you.
Derek wrote:Keep your neighbour in the loop – two blocks will be more beneficial to the developer and also, by extension, you.I have also seen instances on the Gold Coast Broadwater where someone didn't want to sell. His neighbours on both sides and behind did and the property is surrounded on all sides with 5 storey building. Not a good look I tell you.
I have seen a whole shopping centre with a little house in the middle of the car park.
mattnz wrote:I have seen a whole shopping centre with a little house in the middle of the car park.You win:)
Derek wrote:mattnz wrote:I have seen a whole shopping centre with a little house in the middle of the car park.You win:)
Exactly the same thing happened in Pitt St Mall in Sydney. When Westfields were developing the new Sydney City Westfield, they tried to buy all of the shops in that part of the block. One person didn't sell (it was an shoe shop in a pretty old building). Westfields tried to negotiate and couldnt get the shop at the right price and so they went ahead with the develpment and boxed in this one small narrow building with their enormous shopping centre totally surrounding it. The shop lasted less than a year before it closed and now it has been demolished, I am assuming that Westfields finally managed to buy it at what it probably a bargain price.
I am guessing that the owner of that shop lost lots of money on that one!
jywz99 wrote:My house was rezoned to build five story apartments (17m high), a devolper is interested in buying my house and my neighbour's, should I sell now or not sell but cooperate with the developer to take more profit from the development?Any other suggestions? Many thanks.
As hinted at by others, whether you sell or not, expect to have 5 storey apartment blocks either side of you in the next few years.
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