We are 7 home owners in a cul-de-sac that is soon to be rezoned for residential up to 8 stories.
Is there a formula that is used to give an approximate value of our land based on the number of apartments that could be built?
It seems to me that so called developers are just “property collectors” who sell the amalgamated parcel of land to big time developers. Should we form our own company and then approach developers or is this just too complicated?
Hi Higherdale,
The only formula I know that would calculate that is to write “HEAPS”. When developers can build up to 8 stories, the land values go into the stratosphere. Given that your group (assumedly) are talking about this, it may be worth having two or three of you spending the time (and $$) to learn all about it for yourselves.Depending on where you are, there might be a company that can assist. One I know (Brisbane based) is Bob Anderson – he runs workshops while also developing. I have done his course, and his manuals provided appear to be very well written and complete (as far as I know). Given that State and Council laws could be different, you might need a local to assist you.
Then again, there seem to be companies that can
1. Assist you with planning, DA’s, etc but leave you to do the building, or
2. Do all of 1, but also can provide a team to construct, etc.
3. Can offer to buy the sites from you and they will construct for themselves.So Google around – with the mega $ likely available to you all, it is well worth the time spent. Of course, the actual location within a city/town will alter the $$ available (e.g. 7 adjacent lots zoned for 8 levels in inner Sydney is worth far more than the same lot pattern in outer Moree).
Keep in mind that there could be winners and losers in your group of seven too. Depending on lot sizes and their actual position in the group of 7, some lots will be worth more than others. Indeed, some might turn out to be “surplus to requirements” too. It may be worth drawing up legal agreements between you all if planning to operate as one coherent group (could be a bit like herding cats, though eh?).
Anyway the rewards if all lots were to come available together can be massive – and, if you all were able to fund the development yourselves (even after paying for consultants and construction, council fees, etc) the worth to you all could have you all retired afterward.
Let us know where you are (suburb) – who knows who might be reading and are looking for 7 adjacent blocks for high-rise…..
Benny
The answer is how long is a piece of string. You mention 8 storeys but what does that really mean? Is that a fsr of 8:1? or you can build up to 8 storeys but only cover 1/10th of the site? The results are totally different? How much open space is required? How does the building envelope fit the site? Your group may be best served by contacting a valuer and town planner to come up with a highest and best use for the site.
It could be worth it to get a valuation done on it using a hypothetical development.
Cheers
AndrewsuperAndrew | Property Analyser and Finder Tool
https://property-analyser.com.auVery hard to quantify, it comes down to what profit value any developer can derive from this deal. If I were in this situation, the best I would hope to do is work collectively in approaching a number of large developers with the ability to option contract the entire area – letting them know there are multiple parties being approached.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Thanks Benny,
We are located in Sutherland Shire Sydney about 40min drive from the CBD. We are 5 min from the train station and 5 min walk from Westfield which is undergoing a $400 million expansion and renovation.
I paid a visit to the council this week and spoke to one of the town planners and am able to confirm the following:
1. building height up to 20m ie 6 floors (sorry not 8)
2. max floor space ratio 1.5
3. min landscape area 30%
There are 11 more properties that back on to ours that all fall under the same planning/redevelopment controls.Thanks again you’ve been very helpful.
Higherdale
Hi,
Thanks for your reply.
I paid a visit to the council this week and spoke to one of the town planners and am able to confirm the following:
1. building height up to 20m ie 6 floors (sorry not 8)
2. max floor space ratio 1.5
3. min landscape area 30%
There are 11 more properties that back on to ours that all fall under the same planning/redevelopment controls.Higherdale
Thanks Andrew,
Higherdale
Thanks Corey,
Sounds like the best way to get things rolling.
Higherdale.
Yes, as Corey said If you speak to the others and find out who is interested then approach some developer yourself you can add many thousands by cutting out the middleman.
Developers pay big bucks to people who source deals for them.
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Catalyst.
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