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What would you do... when something like this opens up next door...

Discussion in 'General Property Chat' started by Mel77, 20th Jun, 2016.

  1. Mel77

    Mel77 Member

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    Hello,

    What would you do in this situation that we found ourselves in-

    Our investment property is in a suburb close to Sydney CBD that has been experiencing very good capital growth in recent years. It is currently vacant and needs major repairs. We were about to embark on renovations with a view to putting new tenants.

    However, we recently found out that the place next door is going to be turned into a "centre/?place of worship"which will offer support/spiritual counselling services for juveniles with issues. I don't want to get into the details of what type of religion/faith/race, nor the location, but let's just say that these type of centres in other locations have on occasion attracted types open to "radicalisation".

    We have concerns as to the type of people this might attract to the area and the effect it will have on our rental income and ability to sell the property in the future. Any thoughts as to what this might do to property values and rental income?

    Would you sell? Hold onto the property and see what happens? Continue on with plans to renovate and put new tenants in?
     
  2. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

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    ^ ^ this option.
     
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  3. JacM

    JacM VIC Buyer's Agent Business Member

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    Hi @Mel77

    It sounds like your property might be on a relatively main road... is there perhaps an opportunity for you to seek a commercial operating permit for your property so that it an be utilised for something other than residential ?
     
  4. sanj

    sanj Well-Known Member

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    i personally would not sell but either way i think it has to be either sell or continue on with renos because inaction is only going to hurt you financially imo, especially since you say it is in need of major repairs.

    is it worth approaching them and seeing if they would be interested in expanding and buying your site? how far along are their plans?
     
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  5. bobbyj

    bobbyj Well-Known Member

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    I don't see an issue with it. It may increase desirability of that certain demographic.
    Just focus at the numbers.
    Yield, costs for improvement and equity gain etc.

    The rest is just white noise and distractions.
    Unless you're going to use it as a PPOR at some point I'd carry on.
     
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  6. thatbum

    thatbum Well-Known Member

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    This for me.

    If a potentially more lucrative land use was approved next door, I'd be looking into the potential for my lot to be also approved and converted to a higher and better use...
     
  7. Mel77

    Mel77 Member

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    Thanks- alot to think about.... not sure what other use we could have for ours (other than residential). Perhaps we could approach them and see what their plans are in the future- they may want to buy adjacent properties? We don't intend on using it as PPOR in the future.

    I still think if it's kept as a rental, a potential renter would be concerned about juvenile delinquents hanging out the front. Wouldn't it almost be the same as having a rental next door to a housing commission- people always tell me never buy an investment property next door to housing commission. Is there some truth in that - i.e that it will affect your own property price??
     
  8. Bayview

    Bayview Well-Known Member

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    Sell your joint to them for extra carparking space...might save you a stack of coin on the renos....go and ask them.

    Or; they may want to rent it as is for some of their worshippers to use for whatever.
     
  9. thatbum

    thatbum Well-Known Member

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    And then if that doesn't work, maybe find out what town planner they used for their DA application, and go speak to them/hire them to investigate what might be permitted or approved for your lot.
     
  10. Andrewtfarr

    Andrewtfarr Active Member

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    Bit off topic but if you push forward with your reno\repairs etc it might be an idea to try and get tenants in and then do the work so more is claimable on tax!!!
     
  11. Mel77

    Mel77 Member

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    thankyou... didn't know about getting in tenants first to be able to claim more on the renos...
     
  12. hpresident

    hpresident Well-Known Member

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    I would sell. There are other opportunities out there if you think capital gain for the property is going to be low, then sell and buy some where with better growth.

    As much as investing is about making money it is also about limiting losses. Take the profit and move on.
     
    Last edited: 20th Jun, 2016
  13. Xenia

    Xenia Adelaide Property Manager Business Member

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    These are all assumptions and speculations.
    People attracted to a religious councelling service are people who are seeking change. They have not done anything to your property and probably never will.

    If something does happen handle the problem specifically.
    In the mean time, I personally would not be concerned at all with what other people are worshiping or doing next door.
     
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  14. Marty McDonald

    Marty McDonald Mortgage broker Business Member

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    sell.
     
  15. Nick Valsamis

    Nick Valsamis Well-Known Member

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    If you are sure this will happen and the time frame is not too far away, then I would probably be looking to sell beforehand or as mentioned look into a DA.
     
  16. Mel77

    Mel77 Member

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    True - they may not do anything to our property. They will be youth with drug, alcohol and unemployment issues going there for assistance/counselling by this particular religious group.

    So do you think the average tenant would not be concerned at all about living next door to a place like that?
     
  17. Xenia

    Xenia Adelaide Property Manager Business Member

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    Possibly Mel,
    I've had tenants complain about the next door neighbours washing.

    People sometimes complain about things that are not logical.

    If it becomes an issue then sell. You won't know until you actually test it.

    It depends on the demographic of the market too.
     
  18. Scott No Mates

    Scott No Mates Well-Known Member

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    Exercise your right to object under the LEP & DCP. Find the inconsistencies eg parking, noise, noxious odours, overshadowing or whatever sinks their boat.
     
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  19. JacM

    JacM VIC Buyer's Agent Business Member

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    If you have to renovate it anyway, have a chat to council about whether you can get a mixed use permit. If your property is allowed to be something that can be leased out as something that fetches more rent, then perhaps renovate to that requirement instead. For eg medical centre or physiotherapy clinic or something like that.
     
  20. Gockie

    Gockie I'm an ISTP-A female, so I might be a bit quirky! Premium Member

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