My neighbour and i both want to sell

[heroine]

Looking for ideas please...

I am looking to sell my place (720 sqm zoned R20 in Orelia, WA) and so does my Neighbour. We are both looking at late this / early next year. Same zoning and size, both with older houses.

I am thinking both plots together could be worth more to a potential developer.

But I am stumped for ideas on how to tap into it. I'm not keen to pay LMI and stamp duty on his just to then on sell.

Ps The reason I'm selling is I stupidly used a redraw rather than offset and he's moving back east.

Thoughts?

 

[D.T.]

Looking for ideas please...

I am looking to sell my place (720 sqm zoned R20 in Orelia, WA) and so does my Neighbour. We are both looking at late this / early next year. Same zoning and size, both with older houses.

I am thinking both plots together could be worth more to a potential developer.

But I am stumped for ideas on how to tap into it. I'm not keen to pay LMI and stamp duty on his just to then on sell.

Ps The reason I'm selling is I stupidly used a redraw rather than offset and he's moving back east.

Thoughts?

I dont understand your selling reason.

Also, why dont you buy his and do the development yourself?

 

[westminster]

Looking for ideas please...

I am looking to sell my place (720 sqm zoned R20 in Orelia, WA) and so does my Neighbour. We are both looking at late this / early next year. Same zoning and size, both with older houses.

I am thinking both plots together could be worth more to a potential developer.

But I am stumped for ideas on how to tap into it. I'm not keen to pay LMI and stamp duty on his just to then on sell.

Ps The reason I'm selling is I stupidly used a redraw rather than offset and he's moving back east.

Thoughts?

They might be worth more but it depends on the size of the block.
If for example they are both 675sqm each then they are seperately single dwelling blocks but together they are 3 blocks of 450 sqm each.

 

[heroine]

I dont understand your selling reason.

Also, why dont you buy his and do the development yourself?

I pretty much repaid my loan. I can't gear the place.

And I'm not a developer, just bought my first ip and that was stressful.

 

[heroine]

They might be worth more but it depends on the size of the block.
If for example they are both 675sqm each then they are seperately single dwelling blocks but together they are 3 blocks of 450 sqm each.

Yes they are both 720 I'm pretty sure. Could a buyer just put them together and build a third house out the back?

If so how would you go about it, both enlist the same agent?

 

[Colin Rice]

I pretty much repaid my loan. I can't gear the place.

Any more info on your future goals and reason for selling?

 

[matto_]

Sounds like a fully paid off ppor but wanting to tap into the borrowing if it was converted into an ip. Making the borrowings tax deductible.

 

[HD_ACE]

I pretty much repaid my loan. I can't gear the place.

And I'm not a developer, just bought my first ip and that was stressful.

Umm why not? Servicability?

The problem I see is a developer would want to get them at land value or less because they will more than likely have to demo both houses to split into 3 and build a new house on each in order to make money.

The other option is a small secondary option behind each house.

Cheers

 

[westminster]

Yes they are both 720 I'm pretty sure. Could a buyer just put them together and build a third house out the back?

If so how would you go about it, both enlist the same agent?

It depends on placement of the houses and if there is any profit in it for a developer. If both are to the front of the block and there is enough room to run a 3m driveway between the 2 then potentially someone could make a T shaped block for the 3rd.
If both houses have to be knocked down to make 3 blocks then a developer is going to want bottom dollar for it.
If both you and your neighbour are keen and wanted a simple sale then you could come up with a price together (or get it valued) then pop it under Caveat Emptor perhaps and do it as 2 private sales but one buyer for both. No selling fees and potentially a win win.

 

[heroine]

It depends on placement of the houses and if there is any profit in it for a developer. If both are to the front of the block and there is enough room to run a 3m driveway between the 2 then potentially someone could make a T shaped block for the 3rd.
...
If both you and your neighbour are keen and wanted a simple sale then you could come up with a price together (or get it valued) then pop it under Caveat Emptor perhaps and do it as 2 private sales but one buyer for both. No selling fees and potentially a win win.

Thanks, that's very helpful!

Yes, there is a 3m side access already and space for a third house. Although if it was me, I'd wait until Wellard village is done and aim for a rezoning to build a villa complex. There already is one in our street. But what do I know about development...

Do you have any recommendations as to how to get a combined valuation? I had mine valued as a standalone by banks and brokers, but would have no idea how that compares to the price of triplex block...

 

[Aaron_C]

Do you have any recommendations as to how to get a combined valuation? I had mine valued as a standalone by banks and brokers, but would have no idea how that compares to the price of triplex block...

You need a commercial valuer.

 

[nhg]

Unless I got it wrong, there seems to be a misconception developers pay top dollar for property.

Unless it's the missing piece of a multi million dollar high rise, I think most developers would be offering land-value or even less as they would have to demo the houses.

I know that is my approach when putting offers in on development sites.

 

[Aaron_C]

In this case a developer would definitely pay more.

 

[heroine]

In this case a developer would definitely pay more.

Thanks. If that's alright I'll give you a call tomorrow? I had some finance questions too.

 

[Aaron_C]

Sure no problems!

 

[heroine]

So I looked into it a bit more and it seems to be more of a long term story...

If I wanted to create a battle axe now it would need to be strata as greenfield requires a 4m side access.

Also that blocks the possibility of later creating three street front 12*40 blocks which is now ok with the zoning but probably not economical.

I dropped Dale Alcock Developments a line to see what they think but doubtful this would make much sense today.