Did anyone here ever tried follow:
- subdividing an existing block into 2 or 3 lots and
- putting transportable houses on this additional lots and sell?
Any tips or warnings?
What was your budget and timeframe?
How long would it take and how much were your expenses?
Were did you found the house for the block?
How much roughly cost to connect electricity, pluming, gas, phone?I’m planning to buy a property in regional NSW. It almost meets cash flow+ requirements. There are many problems that I’ll have to solve to turn this into a good deal. The main one is a really bad house reputation because of one of the tenants.
I think if I can get rid of the trouble tenant [mario],
renovate the property and
release it, then
subdivide the lot and
put transportable house on new lot and
then sell – this might become a good deal. [medieval]Any help would be really appreciated!
ThanksCheers
Lesia
[evo]
http://www.vmstreamline.comHi Lesia,
Factors to examine when considering a Subdivision
• Local town planning regulations
• Land zoning restrictions
• Minimum size of lots
• Access to water and sewerage services
• Setback requirements
• Minimum building envelopes
• Parks and open space
• Easements
• Vehicle access including Council refuse collection
• Storm water management
• Increased noise from new development
• Environmental and heritage issuesAs each State and Council have their own rules its impossible to give you exact figures but I’d definately pay the local Council a visit to determine what is possible.
A good website that contains a site checklist is http://www.propertydivas.com.au, along with articles about subdivision and removal houses.
Two great books to read are:
“Australian Residential Property Development”
By: Ron FORLEE
Publisher:Wright Books, 2004“Smarter Property Improvement”
By: Peter CEREXHE
Publisher:Allen & Unwin, 2004Good luck!!
Amanda
“It is better to be inconspicuously wealthy, than to be ostentatiously poor…”Hi Lesia
I live in northern NSW and a place in Ballina by the name of Peter Croke mobile homes builds mobile homes in his yard in the industrial area. I’m pretty sure he freights them all over the place. I don’t know his phone no. but i’m sure if you look him up in whitepages.com.au you will get it.[evo]Lisa I am in the process of doing the same in SA. A couple of thoughts
– time taken to do a subdivision is fairly long ( close on a year for me)
– be careful with service costs ( sewerage, power,water )
– extra costs after siging a contract eg changes to plan
– it is helpful to find an area with relatively cheap land ( corner blocks in some country towns are subdividable) where house prices have increased faster than land prices.
good luck MontyI am looking into a simelar deal.
However you have to be careful. While the transportables seem cheap, there are a lot of hidden costs, mainly:
– transport; this can be quite substantial, because of road restrictions. In one case the distance from the building site to the property was about 70km, but the transport distance was 510km!!!!!!!!!!!!!!!!!!!!
[grrr][grrr][grrr]
– plumbing; because they have to be transported, no underfloor plumbing has been done and you have to allow this in your costs.
– the perceived value; while I have not totally discounted transportable yet, I am looking more towards on site build as I can sell a brick veneer for a lot better price than a transportable[strum]
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