Turning your property into a development
I own a very large old house on 2000sqm of land and would either like to develop it for myself, or find a developer to purchase the property for development? What is the process that I need to go through, in order for my property to be attractive to a prospective developer?
There is a misconception that a property with rezoning potential, which has not been rezoned, realises a higher price if sold to a developer. In order to establish what rights the council would support in terms of rezoning or subdivision, you could either contact a Town Planner directly, or have your realtor find out on your behalf what rights would be supported. For example - what density would the council allow on your existing property - i.e. how many units/clusters? However, in order to determine which route would be most profitable, I suggest that you call in a reputable realtor to assess what the current, realistic market value of your property is, i.e. what price would your property sell for in its present condition. Another option to consider is, if the house is situated in such a way that the land could be subdivided to accommodate another property being built on the subdivided portion, you could retain your property and realise a profit from either selling the vacant stand, or stand with building contract. In this instance, your profitability might be more than if you demolished the existing property and subdivided the land into 3 or 4 portions and subsequently either sold the rezoned land for development, or developed the property yourself. To make an informed decision ensure that you obtain a comparative sales analysis of prices achieved for properties with rights, land prices, and new developments, if any, in your area
Author: Denese Zaslansky