Hi All,
I'm after some advice on how / where to start and if anyone can help that would be great…
We currently own (well, mortage) our home in sydney's northern beaches. We live in a battleaxe situation, walking distance to major shopping centre, 5 mins drive to beach, ocean views, city views (can see the NYE fireworks!!) and close to all public transport. There are 4 homes in our battleaxe running off 2 driveways straight down the middle. Total land size of all 4 properties = 4,072 square metres (this size does include the 2 driveways – not sure how many square metres they would be)….
We have all been discussing the possibility of selling all 4 properties to a developer to put up townhouses… Our house was recently valued at around $750k, one of the others at $850k and not sure of the other two.
We are not sure how to start, ie do we approach local real estate agents or developers direct. Also, all 4 of us may be interested in purchasing one of the new townhouses and is it possible to "contract in" some sort of arrangement whereby we sell at a much lesser amount but on the condition that we can have one of the townhouses each. And in doing so, would this benefit us (I believe we can eliminate stamp duty this way) and would this be beneficial for the developer too (giving us a carrot to dangle to them)??? What would be the pros and cons??
Thanks for reading and hopefully someone can help
BoshieProbably it would be best to approach a few agents and hear what they have to say.
If you decide to do it all yourself it would be a bit complicated. I guess you would need to combine all the blocks into one title and then strata or re-subdivide into the new sizes.
In terms of stamp duty, you may get around it by having the final product owned in exact same portions as the current situation – eg 25% each. But there will be heft legal fees to prepare all this. A deed of partition may be needed.
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
Hi Boshie
Why would you go to a developer and thus introduce an extra party into the dealings. You would develop the properties yourselves. Set out a joint agreement between the parties concerned that the costs of getting permits and subdivisions etc is shared…., then each party pays for the construction of their own townhouse (through the one builder of course).
You can engage a town planning consultant to run the application through Council (who in many cases can also arrange an architect), or you can also independently engage an architect who will run the application either solely or in conjunction with a town planner they use. Once the permits are issued you would tender the build to various builders. If you build your own and live in it, there's no stamp duty.
If I lived in Sydney I'd take you up on your offer and develop them for you.
You should consult a town planner and apply for a DA.
There is a significant profit between raw and DA approved.
This will guide you whether to develop or not.
If u wat to sell raw, i would be interested
Hi Boshie,
I also live in the Northern Beaches, and also on a Battleaxe block with views. Come to think of it, I'm also a property developer too given I'm currently at council with a MUH DA for a three-unit development in the heart of Mona Vale.
The first thing I'd do is check your zoning. Pittwater Council have an online faccility that allows you to do this under their mapping section. If its zoned MUH then you stand a chance. If not, then in all probability it won't fly.
The other thing I'd ask is the slope of the site? My PPOR battleaxe is 20 degree slope on a bush block which limits the subdividable land size. Its currently 1600m2 but that is not subdividable because of the slope. They need to be a minimum of 1,000m2 each for subdivision on that slope. If its MUH then this all changes. My Mona Vale development has a total site size of only 700m2 and I'm putting three strata titled units on it. Taking it to its highest use as a value add activity. The margin is around $1M odd.
Anyway, I like your thinking and good luck with it!
Cheers,
Michael.Mortgage Broker you seem to be putting duplicate replies in to every post. I've seen seven in a row!
Can you be a bit more genuine with replies and create something different instead of it seemingly being a blatant advertising campain for your services and web site.
Also would you mind trimming a heap of those links from your signature I'm sure one link in the sig will be enough to let people know where you are and what your about.
Otherwise your doing OK, just a caution….'Cyber Cop'. Drive carefully on the roads.
Jaffa might want to recheck those posts.
It was 27 posts as at this morning without a single post of constructive advice or debate.
Richard Taylor | Australia's leading private lender
Yep just seen that Qls007!
Come on Wayne take not of other posters and brokers to follow examples of acceptable posts.
Posts have been removed and the user has been blocked because of blatant advertising.
Please contact us Wayne if you want to discuss this.
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