Take great care, sometimes councils and agents are wrong!

Discussion in 'Development' started by Car tart, 10th Aug, 2019.

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  1. Car tart

    Car tart Well-Known Member

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    The last two properties, I made an offer on did not stack up when I did my DD.
    The first was advertised by the agent as R2 being 300-450 metre sites, it was mainly SP2 being drainage easement.

    The second is currently for sale 204 Old Pitt Town Road, Box Hill. 12,000 metres for $4 million, council certificate, website and the agent say it’s R2/R3, 250-300 metre sites in this area. The NSW planning department has this site marked as large allotments 2,000 metre sites and riparian zone.

    Needless to say this values the land at considerably less, in fact less than half. I would say it’s value is $500k per acre despite the fact that three seperate buyers have purchased in the last two years at $1.3-$1.6 million per acre.

    All three buyers have now put their sites back on the market hoping that some “sucker” will pay what they paid for it.

    Yes Developers can also get it wrong.
     
  2. SmileSydney

    SmileSydney Well-Known Member

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    Very interesting... the importance of DD!
     
  3. Anthony416

    Anthony416 Well-Known Member

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    I have had several clients contact me in the last year or so saying they wish to proceed with a DA for xxx and that the real estate agent confirmed that it could be done...... Unfortunately this is usually not true.

    Some purchasers think that it is the conveyance's job to do the checking but most of the time they do not have this within their scope of responsibility. Yes, the importance of DD!
     
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  4. Scott No Mates

    Scott No Mates Well-Known Member

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    Total trap for development newbies - thorough due diligence is required. Read the S149 and any referenced LEP, DCP, SEPP, overlays etc - if you have any questions engage with a planner.

    Take away some of the risks and uncertainties before putting mouth in gear or pen to paper with an offer based on the assertions of the vendor and their agent.
     
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  5. Sackie

    Sackie Well-Known Member

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    That's why no matter what the agent/council/certificates say, I always engage a town planner to do thorough DD on a site ( especially on drainage and overlays) before I'd ever contemplate buying it. I'm more than happy to pay a planner with a professional set of eyes and years of experience to give it the once over.
     
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  6. Propertunity

    Propertunity Well-Known Member

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    The selling agent acting for the vendor and the purchaser are contractual adversaries. Why would either of you trust what the other says?
     
    Tufan Chakir likes this.