QLD Dwarfed! Gold Coast keep or sell

So, this unit was purchased in Biggera Waters a couple of years ago. Hoping for either some good CG or alternatively being bought out by a developer. Turns out the developers purchased blocks on either side of the block and left ours alone. Pretty unlucky! One high rise is finished and the other block levelled ready for construction. Why they left ours is a mystery!

In this positions are we better to sell before construction starts on the new block (to the left in photo) or ride it out and hope that our unit appears comparatively cheap to the newer off the plan units? Or is it likely we'll experience no growth because we are boxed in?

Thoughts?

Thanks
Dan

 

Can that block still be developed eventually?

If it can and it's not costing anything to hold I would wait.

 

@Biz i guess technically it can. You can see by its size it won't be big enough for a massive high rise but maybe a 6 storey or similar?

 

No idea what is required there, if there are new buildings on similar blocks then that is a good sign. Would have to check with council to know for sure and even then it's not a home run that something can be build without greasing the right wheels...

Damage is already done though in terms of selling now or in a year. Unless someone is buying sight unseen they can clearly see the building next to it and what is going to be built on the other side.

 

@Biz that was my opinion as well. Everyone will know a block is being built next door either way.

The agent reckons we need to sell ASAP before construction starts or wait till the new block is finished. I could see it perhaps having an effect on tenants. It's a tough one especially with many people predicting the Gold Coast market will be strong over the next couple of years.

 

If I was going to sell, yes I would put it on the market ASAP. He is right, no one wants to buy/rent next to a construction site unless their is a good discount on offer and even then tenants being tenants would probably grumble about it and want out.

How much premium is a developer likely to pay for this site? Can you compare with what was paid for the units that used to be either side?

 

@Biz yeah good point. We have just signed a tenant up for 12 months so could sell with the tenant in there.

Not sure what the neighbouring units sold for I can't find the data, only the sale price for the new units. We are at 376 marine parade. Good location, average Unit block.

 

Here's one from your block

2/376 Marine Parade, Labrador, Qld 4215 - Property Details

How big is the block of land? How does it compare to the neighbours? Ring council and find out what could be built there potentially. Height limits, set backs, site coverages, density of bedrooms etc.

 

Buy the remaining units until you own them all (make offers half way through the construction phase to any owner occupiers) and redevelop.
Bonus: you can raid the sinking fund.

 

Even selling now buyers will discount as there is obviously development planned next door.
Possibly less detrimental if your unit is the one at the front or the back of the building.
Marg

 

I like this option.. might get it heavily discounted!
Even better.. do private sales to save on commissions.

 

It's roughly 550 sqm so pretty small. Buying all the other units would be a great idea if I was a millionaire!

I'm just surprised council would approve blocks on either side and leave one tiny block. You can't build a 3 storey house on a residential block if it will shadow your neighbours joint so not sure why developers are allowed to do it!

 

Money. It's as simple as that.
Councils/political parties need 'donations'.

 

From http://pdonline.goldcoast.qld.gov.au/masterview/modules/common/default.aspx?page=search

You can do a property search and navigate the site

376 MARINE PARADE, LABRADOR 4215
Details
Property Name: AL COURT
Property Number: 11165
RPD: LOT 0 BUP932
Division: DIVISION 4
Parish: BARROW
Area: 579 m2

All depends on the zoning of the neighbouring properties and if they go about a material change of use. I'm not sure how yours compares to the price I linked in an earlier post. Unless you are keeping for another 10 years you would be selling the sooner the better. In and of itself that block would not likely yield a high rise having to allow for parking and so forth. Being on the main drag, it might allow some commercial application in future but that's a long shot and five have to agree to sell.

Is the 249K that the other one sold for reasonable in your opinion considering the neighbouring apartments current and proposed? I'm not familiar with prices there and generally don't follow apartments.

 

Sorry @Player forgot to reply to that. It's a slightly better position in the block and moderately updated. I think we'd get around $280k so after costs approximately break even on purchase price. Not the worst thing in the world I guess. Without the potential for development like we had hoped the only reason for us holding would be to try and scrape an extra $50k or so with the predicted price rises of The Gold Coast in the next year or 2. You might be right. Break even and run!

Thanks for the info with the link as well!

 

Domain wrote an article on the above

Stuck in the middle: Gold Coast owner sandwiched by high-rises

 

@dan2101, would 580m2 vacant land with development potential be worth $2M+?

Did you know about the neighboiring developments and taken a chance when you bought this?

 

@TFBoy not too sure. There is 6 units worth $250-$300k each. I'm not sure how you put a price on the development potential.

It's my partners place and funnily enough she went through a buyers agent that used to frequent Somersoft bragging about their conquests out west. The other day I had a bit of a look into the place at the time she purchased and this particular unit had been for sale for 3-4 months. My gut is that if the buyers agent had've done some research they would've found this out as it was purchased in October 2015.

Personally I would've also done my own research but she thought that as she was paying $10k the research would've been done for her.

 

Can you blow them out of the water with a new 'skinny' tower high rise?

Phoenix Apartments brings the skinny tower to Melbourne

 

Wow @S.T how does that thing not blow over! It's definitely wider than 6.7m so doable. The guy from domain said the best way to go about it is to get the residents together and chip in for an architect and get the DA through council so a developer can just walk in and build it.