unit complex for sale but not sure if i want to sell mine?

[shanetape]

Hey guys, just wondering if anyone has any idea on where to look for more information or have any ideas on where i stand. I have a unit in a block of 5 that the other 4 people are very keen to get out after an offer from a developer for our whole complex to bulldoze it down.

If i have no choice but to sell it, how does it get divided up? Thanks in advance and sorry if i have put this in the wtrong catergory

 

[westminster]

You don't have to sell.
If you are happy to sell though it's nice to be the last person who caves as they may offer you more.
Generally each unit will have to be bought individually. You as the owners can band together and state that you all want $xx or you can negotiate individually.

 

[wylie]

How much is your unit worth? What has the developer offered?

Has he offered one sum to be split between all five owners?

It could be an opportunity for you to hold out for a bit more seeing you are the one holding the trump card...

 

[shanetape]

Oh nice to know.. Thanks for the replies! but how would it work when im the top story of another 2 units? they cant buy theirs and do anything with me above them? they have offered a aconsiderable ammount to what i consinder it to be worth (30% more approx if i divide up the total cost they have offered by 5). But i really like it and dont believe i could find anything with that ammount of money even that would be similar in comparison. And obviously, i would like to gain from this, not just break even to make it worth my while accepting? The other 4 are investors, im the only one who has the unit as a PPOR.

 

[westminster]

Then you ask for more money.
Though I am a little confused. Why is 30% more than it's worth not able to buy something comparable. Surely something comparable should be 30% less than what they have offered.
Get an independant valuation of your property and consider your options.

 

[shanetape]

its hard to explain.. but its not for everyone, its got great views, but old and a bit tired, no carpark etc. but i love it, and paid not much for it. Its the perfect bachelour pad for me. but there isnt much similar around for me to buy, therefore the closest sort of things with similar views, have carparks, bit nicer, but allot pricier..

Thanks everyone for your replies again! all been very helpful!

 

[wylie]

I cannot imagine how you can be forced to sell just because the other four want to sell. If they are keen on selling, they can sell to individuals. It seems the 30% more than the market value is enough for them to agree to.

What sort of values are we talking?

 

[mattnz]

its hard to explain.. but its not for everyone, its got great views, but old and a bit tired, no carpark etc. but i love it, and paid not much for it. Its the perfect bachelour pad for me. but there isnt much similar around for me to buy, therefore the closest sort of things with similar views, have carparks, bit nicer, but allot pricier..

Thanks everyone for your replies again! all been very helpful!

Negotiate with the developer to end up with one of the new units, in return for selling yours.

They pay out your mortgage now, you rent and have the right to purchase the cheapest unit in the new development for the same price they paid you.

 

[devank]

closest sort of things with similar views, have carparks, bit nicer, but allot pricier..

Then how about asking the developer to buy one of those for you?
OR
pick one existing stock from the same developer and demand that! That could be a win-win situation.

 

[westminster]

Ooh I like those 2 ideas. Good one guys - more outside the box thinking.

 

[westminster]

its hard to explain.. but its not for everyone, its got great views, but old and a bit tired, no carpark etc. but i love it, and paid not much for it. Its the perfect bachelour pad for me. but there isnt much similar around for me to buy, therefore the closest sort of things with similar views, have carparks, bit nicer, but allot pricier..

Thanks everyone for your replies again! all been very helpful!

Ah I understand now. It is a dilemma.

You can ask for more money that is not shared with the other 4 - i.e. you get a 5th of the money then a 'signing bonus' of $50k or something like that which is just for you.

I also like the suggestions by Devank and mattnz

 

[handyandy]

In the past there has been discussion to change strata laws to ensure that old strata blocks can be redeveloped with on 75% of the unit holders in favour.

A past article but can't locate any info as to the current situation.

http://www.smh.com.au/national/strata-holdouts-forced-to-sell-under-new-plan-20100115-mch1.html


If the strata laws haven't changed then you will have every right to hold out for the best deal that you can get.

As mentioned already, based on your like of the locality go for the penthouse of the new block - like for like.

Remember negotiate hard and don't be forced into a situation that doesn't suit you. The happiness of the other Unit holders is not your responsibility.

Cheers

 

[shanetape]

thanks allot everyone for the great ideas! Definatly easing the stress levels! Someone asked before what the figures where.. i bought here 5 years ago for 275k and was looking at recieving around the 500-525k mark.

I dont mind the thought of getting a great unit in the new development as part of an exchange, but would be worried, what if the development went bust during construction, or council pulled the pin etc.

Thanks again for the awesome ideas.. i owe a few slabs of beers around here!

 

[wylie]

Someone asked before what the figures where.. i bought here 5 years ago for 275k and was looking at recieving around the 500-525k mark.

I asked about the figures but was more curious about what you think your unit is worth "as is" (selling to someone wanting a unit) compared to what the developer has offered. And I wondered if he is offering different amounts to the individual unit owners, or has just said "I'll take the whole complex for $XX".

If you think its value is around $525K you (I guess) would want to get considerably more because you will probably not pay commission on the sale, but you will pay stamp duty to buy something else. I'll bet the developer is seeking to save extra due to the sellers not having to pay commission to an agent too.

 

[DaveM]

Ask for $100k more than market value to cover stamp duty/costs on another purchase and general compensation for the moving process.

 

[westminster]

I think you should get a local RE to do a valuation on your property it can help you decide how much it's worth. But at the end of the day you need something to replace it with and that is how much money you want covered at least.

 

[IinvestinIP]

Like for Like I like it!

The suggestion about getting a unit back once it is developed is great, but I am like you would not trust is all going to plan. You would have to make sure it will, like take the money you need to get to buy something similar, but have a clause in the contract that you have an option to buy one unit back for the same amount if you like the end project. Have a lawyer draw up the contract water tight. Then go and rent invest the money somewhere short term, enjoy living and wait for your new unit.