Sell my 2x1 unit in Applecross WA to developer or hold?

Discussion in 'Property Market Economics' started by JaneBaijal, 13th Oct, 2017.

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  1. JaneBaijal

    JaneBaijal New Member

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    I have a 2x1 unit in a block of 9 in the Canning precinct in Applecross- undergoing development with new 15-30 storey blocks of units going up, cafes etc
    It's right on the freeway and train line, close to Swan river
    Strata company is keen to sell to developer, owners ambivalent. I feel we will do better by holding and selling for higher price down the track as we will be more desirable as a small block of older units ( built early 60s), than selling or trading for a new unit now- 100s of new units in one small area can only mean devaluation and possibly an oversupply . Strata fees will be higher in new build and no guarantee of selling at a profit
    also I was the last buyer in the block in 2013, and paid more than all the other owners, so I will need higher price to make a profit
    Any thoughts what I should do?
     
  2. DaveM

    DaveM Well-Known Member

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    Why is the strata company so keen for you to sell? They are there to represent your interests not their own. Ask if they get any kickbacks from developers to assist with finding development sites.
     
  3. JaneBaijal

    JaneBaijal New Member

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    Strata company will be hoping to get their cut no doubt
    It's hard to predict but maybe if we sell now we'll get a better price than when the market is flooded with new apartments
     
  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It's a hard one but at the end of the day the price needs to make sense only to you and not the others in the complex. If that means that they get $400k and you get $500k then it is what it is.

    Have you spoken with the other owners or just heard from the strata company?

    In situations like this there is often a case of white lies saying other parties have agreed to sale to get others on board when in fact there was none but no one had talked to each other to check.

    Push back on everything and get the best price you can if you want to sell
     
  5. JaneBaijal

    JaneBaijal New Member

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    We're having an owners meeting direct with the developer next month, so I'll find out more then.
    It's hard to know if I hold it for longer whether I'll get more down the track. It could be another ten years before I see my profit, when I could make a smaller profit now
     
    Perthguy likes this.
  6. Craig202

    Craig202 Member

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    It really depends on your situation and what you want to achieve, i.e. take some money now, assuming that you can get the right price or take an apartment, or keep the old one. Do you plan to stay where you are, would you prefer to live in something new, if you plan on renting it at some time you will get better depreciation for a new unit and the list of things to consider goes on. So my thoughts would be think about the whole scenario and try and work out what your preferred outcome is, what you plan on doing into the future. And if you want to sell, how much would work for you. Speaking as a developer I am happy to pay people a reasonable price, even above market if the deal stacks up, but not an over the top price. Hope that is of some asssistance. Cheers
     
  7. spoon

    spoon Well-Known Member

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    What happens if everybody sold and you are the only left ? Is there a mechanism to force you to sell ? If yes, then you have to sell eventually anyway.