Ok, I've been hesitant to write this thread in the past but now I want to open up and share with you something I'm going through.
I purchased a property off the plan in Sydney in 2005, these are the details:
- Residential: 2 bed, 2 bath, 1 car, 1 storage
- Ground floor
The developer approached me to lease the property as a Display office to help them sell the remaining apartments. It is directly opposite a major shopping centre and has high traffic. I agreed to lease it to them and they have recently told me that they will be ending their lease in March 2014.
- DA is currently for a 'Temporary Display Office'
- I have an agreement with the developer to turn the property to a residential apartment as per the original floorplan before the lease expires. At their cost.
- 230sqm (the developer owns the property next door and has knocked down the wall between the adjoining apartments to make one big office)
I have received advice that because of the ground floor location, its exposure to high traffic, opposite the shopping centre, my property is worth more as a commercial property.
Now I need to make some decisions...
1. Do I try and get a permanent DA for commercial use of the property?
2. Do I try for a permanent DA for mixed use of the property?
3. Do I also purchase the property next door that the developer owns to create one large commercial space?
4. Just keep with the original plan and turn my property back into a residential apartment.
As an investor Im open to either selling the property or to continue renting it out. Am very interested to hear everyone's opinion on how to make the most gain? I've never been in this situation before, its also only my 2nd property, so it'd be great to hear recommendations on how I should approach this.
I purchased a property off the plan in Sydney in 2005, these are the details:
- Residential: 2 bed, 2 bath, 1 car, 1 storage
- Ground floor
The developer approached me to lease the property as a Display office to help them sell the remaining apartments. It is directly opposite a major shopping centre and has high traffic. I agreed to lease it to them and they have recently told me that they will be ending their lease in March 2014.
- DA is currently for a 'Temporary Display Office'
- I have an agreement with the developer to turn the property to a residential apartment as per the original floorplan before the lease expires. At their cost.
- 230sqm (the developer owns the property next door and has knocked down the wall between the adjoining apartments to make one big office)
I have received advice that because of the ground floor location, its exposure to high traffic, opposite the shopping centre, my property is worth more as a commercial property.
Now I need to make some decisions...
1. Do I try and get a permanent DA for commercial use of the property?
2. Do I try for a permanent DA for mixed use of the property?
3. Do I also purchase the property next door that the developer owns to create one large commercial space?
4. Just keep with the original plan and turn my property back into a residential apartment.
As an investor Im open to either selling the property or to continue renting it out. Am very interested to hear everyone's opinion on how to make the most gain? I've never been in this situation before, its also only my 2nd property, so it'd be great to hear recommendations on how I should approach this.
