Unusual selling situation

Discussion in 'Investment Strategy' started by Brenton, 20th Apr, 2018.

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  1. Brenton

    Brenton Member

    Joined:
    28th Jun, 2016
    Posts:
    5
    Location:
    Sydney
    Hi guys, been lurking around here for a while now. I purchased my second IP in Stafford, Brisbane, a few months after joining the site and have now owned it for 17 months now. It has made some progress along with some expensive necessary repairs.

    I am now in a scenario where the blocks around mine are up for sale, totaling 1.5 acres of land. My block looks like the missing piece. I realise that it may very well be developed into commercial land and am unsure of what to do. Has anyone had a similar experience? What was your outcome?

    631 to 641 Stafford Road 62 74 & 78 Midson Street Stafford Qld 4053 - Residential Land for Sale #202087210 - realestate.com.au

    Look forward to any responses
     
    Gockie likes this.
  2. Big Will

    Big Will Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,517
    Location:
    Melbourne, Australia
    Did you want to sell as well or are you wanting to hold?

    If you want to sell and want to join them talk to the REA and see if the others are happy with you joining into the 'pack' - get legal advice here.

    Otherwise wait until it sells and then either contact the developer (if you can get this details) and see if you can negotiate or talk to the REA to negotiate on your behalf with the developer.

    If you hold and they develop without you it still adds value to your land I would think but it would limited what you can do with your block but could always be a small office/retail place (I really don't know the area).
     
  3. Brenton

    Brenton Member

    Joined:
    28th Jun, 2016
    Posts:
    5
    Location:
    Sydney
    My plan when I purchased and up until this afternoon was to hold long term. Now I feel it would be more beneficial to attempt to join the 'pack' and then jump straight back into another property elsewhere.

    I hadn't thought of it becoming offices or retail but something I could look into if I end up being developed around.
     
  4. Tonibell

    Tonibell Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    1,107
    Location:
    Sydney
    Are you the cut out house in the pictures ?

    How did you not know about this ?

    I’m sure any purchaser or prospective purchasers will want to talk to you.

    I think you are in a great negotiating position. I’d stay as a hold out if I was you.

    No way they would do development plans without taking to you first.

    Quite a funny situation really.
     
    Gockie likes this.
  5. LJW

    LJW Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    68
    Location:
    Brisbane
    I'm pretty familiar with this site. It is very strange that they are offering this to the market as a development site but haven't asked you about it.

    The site is zoned LDR so it won't be developed for commercial purposes. It will most likely be developed for townhouses, or as a small lot subdivision. Using a rough guide of 1 dwelling per 200sqm of land, they should get around 30 townhouses on there.

    If I were you, I would probably see if the agent is interested in including your property too, or approach the new buyer to see if they wanted to pick up your site as well. I don't necessarily think you should hold out, as they can easily develop without you (and will do if they can't get your site). In saying that, I wouldn't be that desperate to sell either as your block does have some development potential even as a stand alone site. I'm not sure if you're aware, but you actually can subdivide your site into 2 lots (given the proximity to the nearby Centre), but this would probably require the existing house to be demolished which may not stack up for you.
     
    Esh likes this.

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