Hello All,
My current situation stands at this;
I have had an investment property in Gladstone city, for some time now it has been positively geared due to the rent increase. Although, currently I have the option to sell to a developer and make a nice profit. Do I keep it for myself as a rental for more years to come or remove the existing home and build a duplex and capitalize on dual rents?Please keep in mind that building costs are on the rise as well.
Your help on this topic would be greatly appriciated.
P.s. if the option was to remove existing property and build duplex's then some more information on a narrow block construction project would deffinately be helpful.
Dan
I forgot to mention that if i go ahead with keeping the property the development next door will still take place.
Will this reduce the overall resell of my property in years to come if i did build something new on it?
Also if i do keep the house the developer has asked during the construction phase if they could utilise my land whilst building a retainer wall for their project. Can i ask for compensation during these times as it is an inconvenience to my lawns and a disruption to my yard.
If so, what would be a reasonable price to ask and in what payment structure; daily, weekly etc
Thanks in advance
Dan
What’s the developer building next door? If it would devalue your property I would suggest selling. If, however, it’s just a few units which gives you precedent for your own future development then potentially keep it. You can ask him for compensation to use your property during construction – I don’t know what rate to charge though.
He is building 26 units on the block next door the one behind that and the one behind me.
Hi Danev- If he is building a largish block of units then it might be best to sell and take the profit. You have some leverage in the negotiations as your block of land is worth a lot to a developer if they already own the adjacent properties. If the proposed building is a large multistory development then it will decrease the value of your unit, as not many people want t live in the shadow of one of those.
If the units are relatively low density (ie. detached one or two story townhouses or units) then it probably won't reduce the value of your property that much so you could hold on.
One thing you could consider is whether you could put the proceeds from the sale to better use and make larger profits than if you held on and waited for capital gains and rented the property.
cheers,
LukeHi Luke, thanks for the advice.
The units are not detached and will be two-story. The only advantage i have is my block has a higher elevation. If i was to build two town houses on my bloke would the larger development next door still have an impact on mine.
I like the thought of putting the proceeds to something bigger and better but where and how? That is the million dollar ???
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