Buying in high density development area

[Dave Hooper]

I have an opportunity to purchase a property in an area which has recently been zoned a high density development area.

The problem is that the land is not of sufficient size in itself to do this type of development (ie I would need to purchase on of the neighboring properties, neither of which are for sale).

Is it worth buying in the hope that someone down the track will buy one of these neighbouring properties and then pay me a fortune to sell mine?

Or should I stick to a strategy of simply looking for a good solid investment property with stable returns?

 

[wylie]

If the property stacks up regardless of the high density zoning, why not go for it. It gives a possible edge in future if a neighbour wants to sell. It doesn't always work that way, but if it measures up anyway, it is a possible bonus to you down the track.

 

[Cartoon]

ever thought about offering next door the option to sell so you can do your development? it depends if the numbers work out but you can do things like offer then money + a place once the development is finished or who knows they might be interested in the development and work with you. i would talk to them. either way the area will get developed eventually so it could be a good buy

 

[Dave Hooper]

Thanks for the feedback. We put in a (very low) offer this evening. Will see how we get on.