I’ve a got a narrow block of shops that I feel needs additional room before I can redevelop.
What is the best way to buyout the neighbour’s block or get him to sell?
Have you tried approaching them and asking if they are interested in selling? I would suggest you speak to some agents with local knowledge to see what they think the neighbours property is worth, then approach the neighbour with an offer in that vicinity. You may be able to offer a lower price by not involving real estate agents in the sale, therefore no need for the neighbour to pay them commissions. Which are often sizable.
Before approaching your neighbour you should do a bit of research – firstly, find out what the LEP and council requirements are ie how much land you will require and what you will be able to put on the site (retail/commercial/mixed use), it will be a costly exercise if you buy up next door only to find out that you will need 2 or 3 more properties after that one to make up a development site. Once you know what you can build and how big, do your numbers to determine what you can pay for the site.
Then ascertain who owns the site (make sure you are dealing with the property owner/s not the tenant) – a title search will give you this information (many online service providers in most states).
approaching would have to be the best method surely.
You would most likely need to come up with a more than fair offer in order to make them sell.
Bare trusts are used, whereby, you can keep the your identity from the vendor. In this regard you may use an agent to approach the perspective vendor.
I agree with Scott no mates.
Also, check council zoning. Your shops may not be allowed to spill on to residentially zoned land. Changing zoning will take a long time, may not be successful, and will be a headache.The question of how to get him to sell is a bit tricky… being a free country, he doesn't have to! Best incentive is to pay full asking price, or even more. But if you don't know whether you'll be allowed to do this even if you buy the land, check with council first. Maybe even ask a surveyor for an opinion on the viability of the project,
quickchick
Your neighbour may even be interested in a JV of some sort which would allow you to share the risks and profits.
I think you should directly approach them.
Hi Koiking.
It might be possible to buy just enough land from your neighbour, at a reasonable cost to you, by having the boundaries
realigned. Basically you would be buying some of the adjacent property, while both of you retain your titles. I'd enquire
with the local council before contacting the owners directly.Regards,
G
Hi Koiking,
I noticed that this post is now 3 months long….
Any update on how things are going? Did you approach neighbour?If not, may be time for action.
You'll never know if you don't give it a go!quickchick
You must be logged in to reply to this topic. If you don't have an account, you can register here.
