Developer to buy strata building

[Micky72]

I wasn't sure where to post this.

The owners in our strata complex have been approached by a developer
interested in purchasing the property to build apartments, maximum of 15 levels. There are OPT developments going up all around us.

Some owners have suggested to "sell" to the developer and in return
the developer to give them a brand new unit, once built, in lieu of cash.

I have never heard of this. Can this be done? Has it ever been done?
I say, just sell (for the right price), get the cash and invest elsewhere else?

Does anyone have any information on this type of scenario?

 

[jerrybee]

I would never do a swap unless promised the penthouse.

Trade an old, well built building for a new, cheaply constructed dog box. No way. Also modern buildings push the boundaries of the property too. In my area the old buildings are all surrounded by nice gardens. The new ones push all the way to the edge, as far as they can go. One even goes right to the sidewalk. I'd either accept a big stack of cash or hold out. I wouldn't trust a swap.

 

[Micky72]

The building is very old and the repairs in coming years will mount to $250k+
so I see it as the perfect opportunity to sell now - at my price of course!

How does a swap even work? Wouldn't one still be up for CGT?

 

[jerrybee]

I would still take space + repairs than new + dog box. I love space. Big apartments > all.

And the 250k is spread across a lot of apartments right.

 

[sanj]

I would still take space + repairs than new + dog box. I love space. Big apartments > all.

And the 250k is spread across a lot of apartments right.

lots of assumption being made by you, we have no idea if the existing apartments are big or small, condition of the block, how many, what it's worth, what a new apaertment would be worth etc

if it's an IP the only thing that is important is what will be a better option financially. the rest is all fluff