Hi all,
Currently looking at an old unit in a small block of 4 (so the land value is probably greater than say a high rise apartment block), I think it’s in a good location (close to transport) so it should have plenty of potential. There are a couple of potential options I’m thinking of if I buy it:
1. Wait for developer to buy it and redevelop it – would they just pay me market value of the portion of the land that I own (in that lot)? Or would they simply buy the unit off me with the market price?
2. Buy it and talk to the other owners and try to redevelop the entire block – but where should I start looking in terms of council planning etc? I have no idea how to find out if the area can be redeveloped into apartments?
Is there some step by step guide re. redeveloping block of units? (especially for a noob like me with no idea what the council even do…)
Thanks
The only sure way is to buy all four. Any other plan is a little "hit and hope".
You can approach the local council about any notion you may have of redeveloping the block and they will be able to give you some zoning advice and maybe some advice around council's strategic objectives.
It really depends on the area, zoning, etc. A lot of developers in certain pockets of Sydney are purchasing older boutique apartment blocks, renovating all of them and then marketing them the same way as a new units. It is quite attractive for investors particularly those interested in OTP purchases. Higher risk but if done well there is good potential for higher return.
Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.comTheFinanceShop | Elite Property Finance
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christianb wrote:The only sure way is to buy all four. Any other plan is a little "hit and hope".You can approach the local council about any notion you may have of redeveloping the block and they will be able to give you some zoning advice and maybe some advice around council's strategic objectives.
Thanks christianb, but unfortunately I can only afford 1, so guess that’s out…
yea may approach the council to find out bit more info…TheFinanceShop wrote:It really depends on the area, zoning, etc. A lot of developers in certain pockets of Sydney are purchasing older boutique apartment blocks, renovating all of them and then marketing them the same way as a new units. It is quite attractive for investors particularly those interested in OTP purchases. Higher risk but if done well there is good potential for higher return.Shahin Afarin – Property Finance Consultant
http://elitepropertyfinance.wordpress.comThanks Shahin, but since the area is already above average in pricing, I dont think there is much room for profit once I factor in the potential cost to renovate all 4. It’s actually an art deco unit block so i dont know if much can be done to renovate the external appearance of the building….
First go to local council re zoning, permits, etc… also to find out easements, water,electricity,gas, authorities, Vic roads, each state differ.
I use http://services.land.vic.gov.au/landchannel/content/addressSearch for Victoria it helps me with zoning and other unseen restrictions placed upon site/land. And it's Free or small cost for full reports.
Not sure of NSW,QLD can anyone help me with
Interstate zoning similiar to the government web link to above please .
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