Quote:
Originally Posted by SebC
In this scenario, no, I should not be building a 1600 sq ft house on a property that's zoned for a large condo project and has a developer ready to build it. I should be getting my $400k (which may not be what the policy provides, but this is how it SHOULD work), cashing in on the upzoning/gentrification that's made my land valuable enough to build a condo on, and coming out ahead when I buy a new place to live.
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Even if the land wasn't zoned for condos, you should be taking the money and potentially a loan to cover the rest of the cost to maximize the parcel coverage on that lot which people are paying a premium for. It's a 2800 sq. ft potential lot, so building a 3 bedroom 1600 sq. ft house is just bleeding value. $500K-$1M judging by neighborhoods where this scenario has been playing out (i.e. Britannia).