Hello there,
I have a question about buying the property next door to your own when it is not for sale. On behalf of my parents I am doing some research and I am looking at the options for development of their block of land and possibly next door if we were able to somehow buy their block.My parents have nearly 2000m2 and next door is a block maybe 1350m2.Both have houses, however the one next door is old and run down.The house next door was actually sold for 250,000 dollars a few years ago,which is quite cheap.This was a time when we weren't thinking about these possibilities.Any advice for approaching this situation?
I have even thought about possibilities of buying the back half of their land.If we were to buy half of it and they then caused problems for us to develop, is their ways to avoid that from happening?
Should we get a DA approved for our own block before trying to buy next door?
Should we be careful in the way we do it ,because it may cause some opposition if they figured we wanted to develop next door and they didn't want to sell?Any comments would be great thanks
There's nothing like a direct approach. I wouldn't submit a DA before making contact as council will send them a letter notifying of the proposal. If the neighbour is old and they don't want to move, you could take an option out over the property (exerciseable upon their move into a nursing home/death) or allow them to stay in the house for X years (they don't like being moved).
If you didn't want to show your hand, engage a buyer's agent to act on your behalf (that way the neighbour thinks the approach is from a drive-by).
Thanks,
it's good to hear the opinions of others because there is always a better way to do things.Especially if you don't have experience dealing with these situations.We had a similar siutation and went to see the neighbours for a chat. We discussed different options with them, including we buy their property right away, doing a joint venture together, and taking out an option.
In the end though they said no they wanted to stay put and nothing would persuade them otherwise.
Still worth a go though – nothing ventured, nothing gained….
Cheers,
what is an option?? is there any example you could give me..I think i understand from scott no mates post…but can you take an option out on other events too?
newy777 wrote:Cheers,
what is an option?? is there any example you could give me..Hi Newy777,
You can purchase on option on a property which gives you the irrevocable right to purchase that property within a given time frame.
Say for example you purchase a 18 month option… you now have 18 months to exercise your right to purchase the property – during these 18 months the property is not to be sold to anyone but yourself.
If however, you decide not to purchase the property you simply let your option expire (after the 18 months in this example).
An option is similar to a down payment in the sense that it secures your right to obtain the property, but if you choose not to purchase there is no hard feelings, you simply lose the money you spent on the option.
Hope that helps,
Lance
Crystal clear
Thanks LanceI've got an option document if you would like to read it. Send an email to [email protected]
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