Subdivision planning costs

Hi,

So for demo costs allow about $6k just in case. For all the subdivision costs = plans, council, working drawings, etc allow up to 30-40k if you get the architect to do all of it, Which i would go with if it is your first one. You might be able to squish it into 12 mths depending on the council but don't believe them when they say 3 mths for planning approval (ours still took 8 mths through Whitehorse when they said 3) A more realistic time frame  for completion is 18-24 mths just in case. Construction should take 6-9mths, 6 if its nice and easy.

I have to say I don't know what the bonds are either.

 Give the council a ring and ask them if that particular block is ok for subdivision they can usually tell you if its ok. (this is not a guarantee of a yes to permits) You'll still need to pay for meters etc for gas and power (not up to that yet).

Allow 200-250k constructions costs with a 50k contingency. Landscaping, blinds, things like that are often extras. Call some builders local to u and get prices, call architects and get prices even before you look at your land.

Remember you can always get the plans through the flog off the block which may work better money wise if construction doesn't.

Feel free to message me if you need anything

Enjoy its a lot of fun

D

Yet to have valuation done but looking like 300k-350 hard to compare since there isnt much that is exactly the same in the area.

$1.3ish Cost (at this stage)
$1.6 (conservative valuation)

Then will be enjoying hopefully quite a lot of depreciation on top of the equity.

300-350? They should be finished in Jan. The builder is pulling out all the stops but I don't think well be done b4 xmas. Fencer is a moron! That's holding up driveways etc. Hopefully better valuation next yr anyway. Market went down temp while building but has picked back up due to scarcity (thank god!)

D

You need to be able to borrow money to make money!

We had existing equity which we used as the deposit to obtain the original residential finance. The cash portions were for planning, architects costs and for 5% builders deposit.We also used cash for the mortgage repayments along the way.There will be cash spent on fences, blinds landscaping. The rest is all borrowed. If anyone has 1.3 Mill in cash I would like them to call me and then give me some!!!

I haven't sat down and worked out sqm. We did a total project price. At the end I will go through all of of the dollars with a fine tooth comb and work out any changes I may make for next time (there are already a lot of things I would do differently). This is only the 1st of many, many projects.

And yes there are probably a lot of things I did "wrong" or whatever but honestly I think it is better to do something and make a couple of small mistakes than to do nothing because your afraid of making a mistake.

Enjoy

D

Yeah, I'm looking at doing a straight backyard split (maybe) next to get some cash in. Even a cheap property requires 70k worth of cash even before you get into the subdiv  which is really annoying. Good luck with finding something, it takes a while to find something that's right!

D

Yep you can sell the land without the building permit.  You'd get a bit more for it if you had the permit, of course   You can get an idea of how much more by scanning land prices on http://www.domain.com.au

Hi DWolfe

If he just wanted to subdivide (and put in the obligatory water connections to each property) but NOT submit an application to construct dwelling(s), is that all included in the $6k you suggested?  Or is water connections, power connections etc extra?

jac

Ah yes sorry matie.  I read demo as "demonstration" rather than "demolition"