How to buy house that's not for sale? (And other development questions)

I've got a property in Woy Woy on the Central Coast that's 700m2 zoned R1 which allows for a FSR of 0.85 on blocks that are 1000m2 or more. So what I want to do is buy the property next door and then build townhouses on the combined 1400m2 block.
On one side, there are villas already, and the back isn't really an option either, so that just leaves the other side. It's owned by a man in his 70s and I've approached him a couple of years ago to ask whether he'd be interested in selling and he'd say that he wouldn't leave his house upright.

Now, as I'm not much of a people's person and not a great face to face negotiator, I don't know if there's any way to convince him.
Is there some way I could outsource this to a REA by offering them a couple of grand if successful (though I wouldn't pay anything close to a standard commission)?
Would an option potentially work here? If so, what kind?
Should I consider offering him a townhouse plus say $150k cash? I'm assuming this would mean that I'd have to strata title the whole lot?

Also, how many townhouses would I be likely to fit on there? I'd want at the very least seven.
Further @neK once told me about if you have at least 50% of the properties (or is it floor space) available for low income renters, you can increase the FSR by 0.5, making it 1.35. What are the pitfalls that I need to consider when it comes to this? Would I be able to sell these properties at some point in the future or do they have to be rented out?
I was thinking that I could do one side that's low income and 2 bedrooms, and on the other side have non-low income and 3 bedroom townhouses.

The soil is acid sulphate apparently, does this add much to the cost of construction?
If I was to calculate building costs at $2000/m2 would this be a conservative estimate and would it include landscaping and auxiliaries?

 

@spludgey - 20% of the total FSR is required i believe and the increase is up to 0.5. There's a formula to work it out. Ill have to look it up.

I've never worked out what the "low income renter" piece exactly means. With NRAS my understanding is that it needs to be rented via a PM who is accredited to do so.

I have no issues renting it a lower rate, but i would still want my current PM to manage it - don't want some drop kick PM allowing drop kicks tenants to move in.

 

Before looking to even buy the neighbours you really need to know more to work out if it's worth while doing so.

On 1400sqm I'd "like" to put 6 of 3 bedroom townhouses or maybe a mixture of 4 of 2 bedders and 3 of 3 bedders.

Mathematically a density bonus will give you more FSR but really there is only so much land you can build on and the density bonus will make you go up (ie 3 storeys) and that gets expensive and the end result might be no more than if you hadn't used the density bonus and kept it KISS

Acid sulphate soils will add to to the costs if you need to take out soil and import. Give yourself another $75k just in case in the feaso

 

BTW yes you can ask a local REA to approach him but I don't think they would do it for only a few thousand

 

Selling will give the old guy an issue - loss of pension due to cash on hand vs no ppor. He's indicated that he'll only leave in a box, so you might have to bide your time as money or relocation don't appeal to him.

 

@spludgey
Why buy next door?
Just build 5 on your existing block
700sqm @ 0.85 = 595
595 / 5 = 119.
I believe car parking isn't included as part of the FSR calc.

The old guy will either get annoyed and move out
OR
You could offer the guy 1 of the newly built ones plus cash. Least that way he's not without a home.
Then built the mirror image on the new block

 

cos they need over 1000sqm to get the 0.85.
Not sure what the FSR is for under 1000sqm or if it's even allowed? Is 1000sqm the minimum to be allowed to develop?

 

Thanks all.

Here is the reason for 1000m^2 as I see it:

(2) The maximum floor space ratio for a building on any land is not to exceed the floor space ratio shown for the land on the Floor Space Ratio Map.
Note.
See Part 8 for exceptions to the maximum floor space ratio for buildings in Gosford City Centre.(2A) Despite subclause (2), the maximum floor space ratio for a building on land in Zone R1 General Residential for which the maximum floor space ratio on the Floor Space Ratio Map is 0.7:1 or 0.85:1 is to be:
(a) if the building is used for the purpose of an attached dwelling, semi-detached dwelling or dual occupancy—0.5:1 or 0.6:1, respectively, or
(b) if the building is on a site area of less than 1,000 square metres and is used for the purpose of a residential flat building or multi dwelling housing with all on-site car parking located in the basement—0.6:1 or 0.7:1, respectively, or
(c) if the building is used for the purpose of a residential flat building or multi dwelling housing and includes on-site car parking that is not located in the basement—0.5:1 or 0.6:1, respectively, or
(e) if the building is used for any other purpose (excluding a dwelling house)—0.6:1 or 0.75:1, respectively.

 

If he doesn't want to sell there is not much you can do about it.
Marg

 

Actually how do others read this? Does it mean that I need underground car parking, or will ground floor garages qualify?

I'm aware of that, but I was hoping that a good salesman might be able to show him the positives of selling or moving into a brand new townhouse and having excess cash.

 

You have a lower fsr if you go for on-grade parking.