Crisis of conscience

[steveadl]

Hi all, I may come off sounding very mean or nasty at the end of this...

There is a property adjoining one of mine that I have been hoping would come up for sale. This morning the bloke told me he's decided to sell! I'm ecstatic!

I definitely want to buy it, even though it involves selling another IP. This one will offer a multitude of benefits over the one I'll be selling, and don't regret it at all.

BUT......

Recently my brother has entered the housing market. He's trying to sell his house (although I think they've advertised it at $50k too much), and I've been helping him to look around the same area my house is in.

He has commented to me in the past how it would be good if my neighbor decided to sell, so he could buy that one and we would have adjoining houses for future development.

I'm obviously the person who wanted the house first, and am in a position to buy it. (also, as a side note: the house for sale is not as valuable without me adding a meter or so of frontage to their side boundary).

He doesn't know the guy is selling - and wouldn't unless I tell him. I want to buy it myself, and can. I'm worried if I tell him, he'll want to buy it, and think I should let him.

What should I do?

(PS: Mods - I've just moved this thread from the coffee lounge as I really would love to get some feedback ASAP. Please feel free to move it back, but give me a few hours eh? )

 

[Raddles]

Hi there
why not go into a joint venture? with your brother - you may not have to sell your Ip then and you both benefit.
thanks

 

[steveadl]

Interesting idea Raddles.

Neither of us are really looking for a JV. I'm wanting a major development block to do with as I wish down the track - hence why I want to buy the neighbours block. He's looking for a new PPOR to start over and start building his wealth.

 

[Cherry Pro]

He ain't heavy ...he's my brother

Steve

Know how much you want the place !

What will the purchase do for you ... in financial terms ? Add $ ____ k equity to your investment base...

How much is your relationship with your brother worth ... if you can't put
a value on it because it's priceless ... you know the answer.

Cheers,
Amelia

 

[Rolf Schaefer]

You may lose a brother but win a major development site if you don't talk to your brother - things like this can never be kept a secret for too long.

I think you should openly discuss it with your brother and explain your decision making process and long term plans for the property.

 

[softmonkey]

buy it yourself. then come clean with your brother and explain your reasons, and devote a good effort to helping him find a good property for his own purpose

we all love to say over a beer "we should do that together" but 9 times out of 10, its a BAD idea.

 

[Dis]

"The deal of a life time comes around once a week"

How many brothers do you have?

Personally I'd discuss with him
a) the property is up for sale
b) what your plans are for it
c) what his plans are for it if he is still interested
d) if there is a collaborative approach you can take so you can both get what you want (win win)

If you have his best interests at heart and he has your best interests at heart you will probably both be happy with the solution.

 

[Tulip]

Its hard with family involved.

So he thinks it would be a good deal, can you say to him it would be, but here is a better deal for you (looking for win win)?

If you want to buy it, can you buy it for your own reno as you now "need" extra space, but then a couple of years down the track, its suddenly better to develop it after all?

Just assume he will find out. A family member recently became a RE agent and advised all family members of each other holdings, thankfully they have changed occupations again, but these things do happen.

 

[steveadl]

Thanks for the advice guys.

Not happy keeping it to myself, am going to talk to him now.

SoftMonkey - believe me, I've been trying very hard over the last couple months to help him find a property. Sent him dozens! They usually don't suite his requirements for one reason or another But I have been very earnest in my helping him, devoting quite a few hours to it, and offering him free use of my RP Data subsrcription. Problem is he's also finding it hard to sell his own, and any offer he makes would be subject to sale. He's now said he's not making any more offers until/if he gets a contract for his.

 

[buzzlightyear]

My thoughts are to tell him of the opportunity, give him the option to purchase. Who knows he might not like the house, too expensive, not suited to his family etc Its one thing to say in a theoretical conversation to want to live next door to you, but the reality may indeed be different.

I have always found that there are plenty of opportunities around. As much as you believe (and it may well be) a great opportunity,others will present themselves. Assuming of course he purchases it. Let us know what happens...

 

[landlubber]

I agree with Rolf. Talk, explain thoroughly to your brother ...but definitely don't miss it !! You can wait a long while for these opportunities to come around again. Plus it sounds like you've got an inside rail.

The reality is ... this particular property means MUCH more to you than it would to your brother ...as you get a dev. block. If he's true-blue and the relationship is AS important to him as it is to you, he should appreciate this.

Then you gotta make it up to him by really helping him find the "right" PPOR and not the one he presently thinks he wants ...right next door to his successful sibling.

Go get it.
LL

 

[Smilla]

Another option is mentioning that your neighbour has offered the place to you personally – that he isnt putting it on the open market. You could give him the impression that you have first dibs.

 

[steveadl]

Landlubber, I know - I've been dreaming about it since last year when we got the original property! Even made an offer to another neighbour to purcahse, but that didn't work out. It's a fantastic opportunity.

Definitely trying my hardest to find him a place, but he doesn't make it easy! To be honest, this place wouldn't suit them anyway (based on all the others they've rejected) - it's quite small at 95m2, and not wheelchair friendly.

Smilla - that is the case. He's offered it to us first, and assuming we say 'yes' - he won't be going to market. Saves him almost $10k in REA commission.

 

[depreciator]

Maybe you could sell him the IP you're going to offload at a discount - you won't be paying agents fees, marketing etc?
Scott

 

[steveadl]

Maybe you could sell him the IP you're going to offload at a discount - you won't be paying agents fees, marketing etc?
Scott

That's a really good idea too Scott! Unfortunately doesn't suit his requirements, but anyone else on SS is welcome to a look! lol, better save that for Caveat Emptor!

 

[Novar]

Don't rush into anything.
Think it through and then make your decision.

 

[GoAnna!]

Does your brother realise that you are also interested in the property next door? Does he realise that you are also in the market for a property?

 

[steveadl]

Hi GoAnna, whilst I'm always keeping my eyes open for good opportunities, I wasn't specifically in the market. We mentioned to the neighbour a while back that if he was ever interested in selling to let us know. Turns out it just happened sooner rather than later.

It's just too good an opportunity to pass up. As I said, I was even trying other alternatives like the back block etc (which is still for sale as well, but no house - ran the ruler over it, but the holding costs are too great), this is just the dream scenario. Have mentioned this to him in the past, which I think is where he got the idea in the first place. I never suggested he buy it. I can see too many things going wrong mixing with family in a development.

 

[WinstonWolfe]

If your conscience is not at ease. then you owe it to your conscience to talk with him.....don't be afraid of what you might lose......recognise the peace you will feel within from doing so.....an easy conscience is priceless.

Trust in the universe that whatever is meant to be will unfold if you bring it up with your brother.....and that you'd never feel at ease in his presence again if you don't bring it up.....

But from you say, I sense you are not meant to do a JV with him. seems he is not reconciled with where in life he might best go.

Just trust that there will be a better outcome from discussing it with him....the universe isn't limited, especially for those who have an easy conscience, a positive attitude, and a giving heart.

 

[weg]

I'd would definately talk to him. Be honest and tell him you had always eyed off the property next door even though you didn't relay that to him.

Tell him you don't want a JV and that having adjoining properties would be of no financial benefit over him buying a good property elsewhere. He should then understand that the benefit to you is far greater.

Also mention that he asked YOU so it saves on vendors commission costs even though it sounds like it benefits you more.

If he is a reasonable person and you articulate all these points well enough he may not get that uspest especially as you are doing all you can to help him.

If that fails you can then both put offers on the property privately and if his is subject to then it would probably be in your favour and push up the price. Tell him that also.

I do think however you should avoid bad feelings by buying without him knowing. It's these little things that can come between family.

No you don't sound bad for thinking of all alternatives on what you should do. We all would. Part of your grand plan is aquiring large blocks for future development. We all know that. Just hope he does too.

Cheers