liverpool r4 development site

Hi Everyone
This is my first post on here but have been reading a lot and some great info on here
Firstly thanks to all the contributers for their time and sharing their expertise
Recently my father in law was approached with an option on his old house and land
The land is zoned R4 700 odd sq metres
Developer needs 12 month option and then another 6 month to cover delays
Would be part of 5 adjoining blocks of pretty much the same size
Developer can build 120 apartments on this total land parcel
I have no idea about values or how much the developer should be paying him
I will be negotiating on his behalf but not sure how to come to a figure
Each of the 5 landowners will be negotiating separately
So works out roughly 24 apartments on each separate block
Anyone with this experience would love to hear from you

Thanks
Lilolizard

 

First thing .

If you have no idea what it's worth and how to negotiate , get someone who does .

Seriously , would be worth it .

May well be worth while getting all land owners to pool together .

Have you talked to the other owners yet to see if they know what they're doing ?

There should be someone locally who could advise you .

An ex GM of Ku-ring-Gai runs a business up this way and that is something he would do .

I'd start talking to locals . Starting with the REA's asking if they can recommend someone ( not themselves ) . Maybe explain the situation and say you're trying to get everyone together and was wondering if they can recommend someone to talk , though swim carefully , there would be a few Great Whites around

Cliff

 

Definitely negotiate together to try maximize your price

 

Thanks for quick replies
Yep banding together sounds like the go
Have spoken to 2 neighbours who said they had verbally agreed to purchase price with 12 month option wouldn't disclose amount but were happy with figure Didn't seem keen on joining forces
Other 2 neighbours havent been able to contact
Looks like every man for himself
No one seems to trust each other
I asked developer what neighbours had agreed to he said it was confidential
Fun and Games

 

well , if they're playing games and already agreed to price and you're holding out .....

Might put the negotiating boot back on your foot .

You need to find out what the actual site value / unit is so when you start talking price , you're actually in the right price bracket ,

I'd guess the developer didn't max out on his first offers / blocks so will have room up his sleeve .

Do you know how many blocks he needs to make it work and how strategic is your block position-wise ?

eg there's a developer locally who has three blocks which give him the right to build around 24 units , but if he buys the next one he can build 60 .....

The block is owned by an investor who didn't buy it that long ago .

24 on three isn't that economical , but 60 on 4 is ,,,,well ...

But for what ever reason the investor doesn't want to sell , despite being apparently offered 6 mill + for a block that would have cost him less than 2

There are people on the forum who could give you advice , but the title might have put them off , maybe they think you're trying to buy one .

Check on the council web site on zoning details and read up as much as you can , so when you go to talk to an advisor you sound informed and it'll work more easily.

Cliff

.

 

@lilolizard - Plenty of unknowns whilst there is no DA in place - risk (for developer) will affect the price offered. How vital is your site to the development ie is it on the edge or in the middle and the development can't proceed without your block?

 

There are 5 blocks
the only corner block then ours then the other 3 blocks all fronting same road
Guessing the middle block would be key and they have a verbal agreement with developer
They could probably do just 3 blocks going other way from middle bock but if they want 4 or 5 then our block would be obviously the next one required so if tried to get too much developer may just walk away and do the 3 blocks
A few scenarios and all speculation on my behalf on what could happen
I know that they can build to 35 metres height 8 or 9 stories
2 blocks only side by side max units would probably be 34 that is 17 per block
whereas with the 5 they can span across boundaries and fit 120 approx which is 24 per block
I would think developer would like to da the bigger option to maximise profit
Thanks again for all replies

 

Family got burned from a very very similar case!! The final lots just got sold.

DO NOT DO ANYTHING without talking to neighbours first. You improve your position in negotiations by banding with the neighbours not against them. Also nothing is stopping the set of you guys from putting your homes on the market and letting developers compete.

In this fashion, the developers come door knocking early to make a few extra mill by buying the houses fragmented. It takes them longer but they make a very tidy profit. They did this to us and we had 2 blocks of the 5, unfortunately we were much more naive back then and gave up our position of power...

Also money in 1 or 2 years is very different from money today. Plenty of developers will buy the 5 blocks at once if you put them on the market together. Those that need financing to find a new home may negotiate seperate terms with the buyer (just make sure you let the agent know).

Seriously this is important that you start talking to neighbours. Happy to chat on phone and let you know of our experience.. Pm me if you would like to talk.