Selling with a neighbour?

[piNoob]

Hi,

I know it's not easy to give advice without knowing all the details, but in general can you sell house for more if you can sell 2 houses next to each other with your neighbour?

Both have ~560 sq/m land and are in Sydney (Padstow suburb). You can build duplex on each, so not sure if developers would be interested in something like this as they will be able to build only x2 duplexes anyway?

Thank you.

 

[JDM]

Selling with a neighbour is usually best when selling as one site:

1. makes the properties a development site when they otherwise weren't; or
2. increases the yield of the development in comparison to developing as individual sites (ie the bigger site allows a gross floor area of 100% rather than 75%).

In this case it doesn't sound like there would be any benefit if they could still only construct a duplex on each lot.

 

[piNoob]

Thank you JDM, makes sense!

Need to work it out if possible to fit 6 villas, maybe worth buying house from neighbour and building myself

 

[Big Will]

That is always an option but yes if he can fit more on having it as one block combined than two separate than yes you should expect more. If you buy the neighbours and get DA approved for 5 or 6 you would increase the value to the builder (less holding costs for them) but you will need to work out your own holding costs and time to make sure it is worth it.

 

[belvoir]

Unfortunately from a developers point of view bankstown council isn't the best bang for buck when selling development sites.

Bankstown council is very pro development and so even though you can build a duplex so can almost every other property.

Unlike Kogarah council where you need 900sqm and 18m frontage for a duplex (soon to change) Bankstown council has very lax requirements for developments. IMO for Sydney it is a great thing but for your current situation there isn't much value add from selling as a development because it is not a scarce commodity for that area.