Hello all. Yesterday I had an opportunity come up that I wasn`t expecting to have happen, so I thought I would take advantage of the brains and experience here as I move forward.
I have one property, which I decided to live in, in a transitional area in Ottawa (#7 town in Ontario). Directly behind my place, they`re going to be building a 16-story, 90 unit residential building. I naturally had been planning on keeping it for another couple of years, until it appreciated a lot more, and then sell it to a young government worker. (It`s literally a 2-minute walk to a big government complex.) I got it in fall of 2004 for $152 000, put about $15 000 into it. Now, it`s worth roughly $200 000 - probably a bit less, possibly a bit more. And my mortgage is for roughly $110 000.
Yesterday, I got a letter in the mailbox, from the broker involved in the land transaction of the properties directly behind me. She wants me to call her, as she has an offer for my property from the developer. My neighbour came over and talked to me yesterday, and said that when she was talking to him, she said that they wanted our properties for parking (apparently so they won`t have to dig as much for underground parking). I assume my property would work a bit better for them than his, as mine is directly behind the new site, and his is behind and a bit to one side. They also won`t be able to build to either side, or behind and to the other side. They basically only have one quadrant to go to, in which I have the prime position. I haven`t yet called to get the offer from them, as I wanted to do a bit of my due diligence first, to see how this could best work.
Overall, I`m assuming it`s a very good situation to be in, and could potentially leap me forward a lot. With that in mind, what`s the best way to handle it? I`m not interested in selling for market value, but if it`s high enough that it will help me towards my goals, then I`m all for it. So, has anyone been in this kind of situation before? What kind of due diligence should I do? What information should I be looking for, and where should I get it? Is there any kind of guideline or rule of thumb as to the percentage higher than market that is paid out in these kinds of cases?
One final consideration is that my ability to get my next mortgage will be a lot less than when I got this one, as my income has gone down over the last year or so, so my mortgages will be pretty out of whack.
Thanks for your help, all!
John Scanlon
I have one property, which I decided to live in, in a transitional area in Ottawa (#7 town in Ontario). Directly behind my place, they`re going to be building a 16-story, 90 unit residential building. I naturally had been planning on keeping it for another couple of years, until it appreciated a lot more, and then sell it to a young government worker. (It`s literally a 2-minute walk to a big government complex.) I got it in fall of 2004 for $152 000, put about $15 000 into it. Now, it`s worth roughly $200 000 - probably a bit less, possibly a bit more. And my mortgage is for roughly $110 000.
Yesterday, I got a letter in the mailbox, from the broker involved in the land transaction of the properties directly behind me. She wants me to call her, as she has an offer for my property from the developer. My neighbour came over and talked to me yesterday, and said that when she was talking to him, she said that they wanted our properties for parking (apparently so they won`t have to dig as much for underground parking). I assume my property would work a bit better for them than his, as mine is directly behind the new site, and his is behind and a bit to one side. They also won`t be able to build to either side, or behind and to the other side. They basically only have one quadrant to go to, in which I have the prime position. I haven`t yet called to get the offer from them, as I wanted to do a bit of my due diligence first, to see how this could best work.
Overall, I`m assuming it`s a very good situation to be in, and could potentially leap me forward a lot. With that in mind, what`s the best way to handle it? I`m not interested in selling for market value, but if it`s high enough that it will help me towards my goals, then I`m all for it. So, has anyone been in this kind of situation before? What kind of due diligence should I do? What information should I be looking for, and where should I get it? Is there any kind of guideline or rule of thumb as to the percentage higher than market that is paid out in these kinds of cases?
One final consideration is that my ability to get my next mortgage will be a lot less than when I got this one, as my income has gone down over the last year or so, so my mortgages will be pretty out of whack.
Thanks for your help, all!
John Scanlon
