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Pre-war development query

Discussion in 'Development' started by Vanillascent, 27th May, 2016.

  1. Vanillascent

    Vanillascent Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    51
    Location:
    Brisbane
    Hi everyone,

    A friend of mine asked me about something their agent has told them about a pre-war property in Brisbane. I didn't know so thought someone here may have some idea. They were approached years ago by a developer who wished to purchase their property for redevelopment due to its proximity to a popular city fringe street. The agent, after suggesting a sale price which they went with, has now told them after a week that they need to drop the sale price by $100k because no developer will buy it because of the restrictions on developing pre-war properties. It is not heritage listed and would not be eligible for being heritage listed I believe based on what they have said. Could anyone advise of what this restriction may be?

    They feel like the agent might just be looking for a quick sale.

    Any help would be greatly appreciated.

    Thanks.
     
  2. datto

    datto Well-Known Member

    Joined:
    23rd Jun, 2015
    Posts:
    1,394
    Location:
    Mt Druuiitt
    If your friend is not desperate to sell......don't sell

    Otherwise check with council about any restrictions.

    I'd say this agent has got your friend's hopes up high and now the agent is hoping for a cheap buy.

    If that's the case I'd tell the agent that the price has gone up 100K not down. And if he doesn't like it then tough luck.
     
  3. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,576
    Location:
    Sydney or NSW or Australia
    @datto is spot on - agent enticed / convinced your friend with a high price.

    Now that they're signed up - forcing the oh it's overpriced. Make the agent work for their commission or let them out of the contract. Your friend isn't too keen on selling in any case.
     
    datto likes this.
  4. RPI

    RPI Property Lawyer, Town Planner Business Member

    Joined:
    19th Jun, 2015
    Posts:
    714
    Location:
    Brisbane
    Agree with above that he agent seems to be working it. but it is true that the pre-46 restrictions can greatly reduce value. pm me the address and i will look and reply through here.
     
  5. #house

    #house Active Member

    Joined:
    1st Feb, 2016
    Posts:
    26
    Location:
    Brisbane
    Agree with above. When we were looking we specifically excluded pre-1946 properties because of the restrictions. These restrictions would affect developers the most (obviously) so if you're looking to sell to developers you have to keep their development goals in mind. Having said that, there are pre-46 properties that have had development. I've seem them shift the house to the edge of the block and build town-houses behind.
     
  6. RPI

    RPI Property Lawyer, Town Planner Business Member

    Joined:
    19th Jun, 2015
    Posts:
    714
    Location:
    Brisbane
    It is definitely a pre-1946 property.
    However, given the appearance and the character of the street I would estimate we have a greater than 80% chance of getting a demolition approval on it by mediation in an Appeal. BCC will mostly reject the application, they seem to reject all of them at present.

    We do fixed price both in the planning practice and
    An application to council will be around the $7k in total
    -$2,560 council
    -$2,570 plus GST town planning
    - $500-$1,000 for drafty to draw demo plan

    Certus does fixed price planning appeal packages including professional fees, court fees and a top barrister's fees.

    Stage 1 is $8,500 plus GST (good chance of being resolved at this stage)
    Preparation, lodging appeal, service of docs, appearances in court and negotations with council

    Stage 2 is $7,500 plus GST
    Mediation with council
     
    sanj likes this.