Hi all, I am looking for some advice.
I own 2 adjacent houses in a great street within 5km of the Adelaide CBD. A third adjacent house is now on the market. Each house is $450k. Total area of the three blocks is over 2200m2, and council have confirmed 8 dwellings is possible including some detached. Those 8 dwellings would be worth about $450k each today. (In fact council even suggested 10 row houses was possible, but I feel at 5m wide those would be a pain to build and shift).
My household is now on one income (baby), so the third block is out of reach on serviceability. We have $200k cash. I'm looking at options. I don't want to rule anything in or out at this stage so everything is on the table. Options I can see so far include:
1. finding a lender for the 3rd block and continuing our strategy to hold for a further 5-10 years before developing.
2. agreeing to sell our 2 blocks outright to someone else upon completion of their purchase of 3rd block.
3. joint venture with another investor in approximately 66:33
4. joint venture with a builder, contributing the blocks in exchange for some of the resulting dwellings.
Any suggestions or other options would be very much welcomed. I don't really know who to contact to discuss these types of deals, I have e-mailed some developers such as Oakford and that's about it. I'd be happy to discuss the specifics further with anyone that is interested.
I own 2 adjacent houses in a great street within 5km of the Adelaide CBD. A third adjacent house is now on the market. Each house is $450k. Total area of the three blocks is over 2200m2, and council have confirmed 8 dwellings is possible including some detached. Those 8 dwellings would be worth about $450k each today. (In fact council even suggested 10 row houses was possible, but I feel at 5m wide those would be a pain to build and shift).
My household is now on one income (baby), so the third block is out of reach on serviceability. We have $200k cash. I'm looking at options. I don't want to rule anything in or out at this stage so everything is on the table. Options I can see so far include:
1. finding a lender for the 3rd block and continuing our strategy to hold for a further 5-10 years before developing.
2. agreeing to sell our 2 blocks outright to someone else upon completion of their purchase of 3rd block.
3. joint venture with another investor in approximately 66:33
4. joint venture with a builder, contributing the blocks in exchange for some of the resulting dwellings.
Any suggestions or other options would be very much welcomed. I don't really know who to contact to discuss these types of deals, I have e-mailed some developers such as Oakford and that's about it. I'd be happy to discuss the specifics further with anyone that is interested.
