All Topics / Value Adding / Sub-division – Auction Dilemma

Register Now for My Free Live Training Series!
Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of Apples81Apples81
    Participant
    @apples81
    Join Date: 2004
    Post Count: 14
    August 5, 2004 - 11:09 am

    Hi all,

    I am wondering how you would go about getting council go ahead for subdivision of a property being sold at auction. I have never bought at auction, but as I understand it the property sold there and then and you need preapproval for finance before you can buy – how does this give you the opportunity to get concrete commitment from the council regarding potential sub-division? I would also expect that if you do get a commitment from the council in writing regarding a proposal, you would only drive up the price of the property.

    Is there something I a missing?

    Thanks in advance,
    Apples.

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    August 6, 2004 - 7:44 am

    Apples

    In essence there is nothing you can do to guarantee get approval when you bid at auction day.

    One thing you could do is arrange a preliminary meeting with the Local Council and get them to give you their feelings on such a deal.

    Most Councils at a charge will set up a preliminary meeting with a Town Planner and representative from the Traffic, Environmental Dept etc (depending on the location of the site)
    and advise you whether they have any immediate objection to the proposal.

    The other think to consider is the Town Plan itself as most areas are clearly marked as to there zoning and allowable land use.

    Cheers Richard
    richard at fhog.com.au
    http://www.fhog.com.au

    There is no such thing as a problem.
    Just a solution waiting to be found

    Richard Taylor | Australia's leading private lender

    Profile photo of Apples81Apples81
    Participant
    @apples81
    Join Date: 2004
    Post Count: 14
    August 6, 2004 - 10:06 pm

    Thanks a lot Richard,
    This is a big help.
    Cheers,
    Apples

    Profile photo of PeterCombenPeterComben
    Participant
    @petercomben
    Join Date: 2002
    Post Count: 16
    August 9, 2004 - 2:02 pm

    As a rule I never buy at auction… in fact I’ve only ever done it once but in a situation where I had a distinct advantage because as a result of careful extensive research and concept evaluation before the day, we dug up some information which we didn’t even tell the agent! The information we obtained enabled us to propose the building of an extra unit that other bidders would not have thought possible.

    Aside from a special case like that… I would as a rule not buy at auction.

    With the market changing, you may find that there may be some bargains with development potential available through auction, so don’t completely discount it just because I don’t do it! Just be careful.

    Peter.

    —

    Peter Comben
    http://www.smartpropertydevelopment.com.au

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.