When Owners Say No to Property Developers
Scenes where homeowners refuse to leave their abodes despite big offers from large developers are stuff that we often see in movies. Here in Australia though, fiction can sometimes be reality.
They’re called nail houses in China, after an expression that loosely translates to “stubborn nails”. These are houses whose owners refuse to accept compensation from businesses and developers. And just like in movies, such as Up and The Castle, most of the property owners remained resilient, even when big time developers knock on their doors with huge cheques.
In Mollison St, South Brisbane one home stands between a shopping complex and unit blocks. For 15 years, husband and wife Norman and Janet Richards have turned down several offers from various developers. But now that they’re moving to a retirement home, the property is up for sale to the highest bidder.
Sydney also has its own nail houses. In St Leonards for example, a single-storey property has stood for over 75 years. It was bought back in 1960 for 3,000 pounds and was expected to fetch about $3.5 million. It has since been sold for an undisclosed sum, after the owners closed their business.
The Better Strategy
These stories show what could happen if you buy and hold properties in the right location. Real estate becomes more valuable because of developments. When you know where to invest — an up-and-coming suburb just outside the city, for example — you can take advantage of potential capital gains and reap great returns in the future. Learn more about holding on to your properties here.
Here at JDL Strategies, we can show you what’s best for your wealth creation plan. While we do applaud these owners for their resilience, we believe it’s also important to assess your financial health and see which step is the best for you.
There are several factors that you should consider in property investing, from rental vacancy rates and future developments. Our 44-point checklist can help you get started. Talk to us if you want to know how to start growing your property portfolio.