All Topics / Help Needed! / Do all new blocks of land in Victoria have covenants on them to do with sub dividing

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  • Profile photo of gaye81gaye81
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    @gaye81
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    Hi there I have been told that if I wanted to buy a property to build some town houses on that I would have to buy a property that already has a house on it and knock down the exiting house to make way for the town houses as all new land now have covenants on them which will not allow you to sub divide the land. I would be grateful if some one could help me on this as I am quite new at all this. I am looking in Victoria could some one please help. Thankyou

    Profile photo of DWolfeDWolfe
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    Hi,

    It may not be all new land but you'll probably find that if it is in a new estate it will. Most new estates are aimed at the family market and while they might be close to shops, transport etc they may not be right for subdivision. Yes look for an old house because you will avoid this and probably get more land for your dollar. Some older properties are in better locations also. Don't worry about the old house it should only cost around $10k to get rid of and even if it has asbestos etc up to $15k.

    Good luck Vic is nuts for subdivisions right now
    D

    DWolfe | www.homestagers.com.au
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    Profile photo of gaye81gaye81
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    DWolfe wrote:
    Hi,

    It may not be all new land but you'll probably find that if it is in a new estate it will. Most new estates are aimed at the family market and while they might be close to shops, transport etc they may not be right for subdivision. Yes look for an old house because you will avoid this and probably get more land for your dollar. Some older properties are in better locations also. Don't worry about the old house it should only cost around $10k to get rid of and even if it has asbestos etc up to $15k.

    Good luck Vic is nuts for subdivisions right now
    D

    Thanks for your help it is much aprieciated

    mattnz
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    I bought land in the new Wyndham Harbour marina development yesterday. I was concerned about the guy in front of me subdividing his 900 sqm block and building 2 houses, blocking my view. I was advised that he wasn’t allowed to. This certainly confirms that in a new development, even large blocks are unable to be subdivided. The covenants state one dwelling per block.

    Profile photo of SingerSinger
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    mattnz wrote:
    . The covenants state one dwelling per block.

    Can covenants be changed?   Can that guy in front just go to council and ask for a change?

    Profile photo of DWolfeDWolfe
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    The covenants might be for a certain time period. And if they are there for reasons like keeping a certain level of landscape or ambiance then the guy might find this a big hassle. The council will send out letters to other residents (if it even gets that far) and then he will probably find that he has 20 or so other residents all opposed to his plans. I personally wouldn't try this but maybe that guy has some other info etc. Then again he just may not have read the contract properly ! I wouldn't have thought the builder would let someone else make a profit out of their project.

    D

    DWolfe | www.homestagers.com.au
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    Profile photo of Jacqui MiddletonJacqui Middleton
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    How much does a subdivision actually cost?  DWolfe you sound like you know a bit about the topic…

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of DWolfeDWolfe
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    It costs an arm and a leg, takes forever and having your builder call you and tell you to get rid of the landscaper like today's little adventure is not for the faint hearted! But apart from that it is heaps of fun all the way through and you spend a lot of time on the phone and email learning something new every day!

     As for the real cost if you factor $50k for not doing it yourself and maybe 30k if you are you will be safe. This does not include holding costs and misc items that crop up. Will I do it again? Oh yeah! Will I do the subdivision part myself? Nup, I'll leave that to my guys, like I leave the tax part to the accountant, the legal part to the solicitor and the building to the builder. (I'm a fan of outsourcing to people more expert than I)

    Hey JacM just tell me to be quiet if I keep ranting about the same ol same ol, lol! 

    D

    DWolfe | www.homestagers.com.au
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    Profile photo of DWolfeDWolfe
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    Hey JacM are you coming on the 4th of Feb?

    DWolfe | www.homestagers.com.au
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    Profile photo of Jacqui MiddletonJacqui Middleton
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    Wow $30k, for some reason I had guessed a much lower figure.  I guess it depends on the council being dealt with, and the number of pieces you're subdividing the original block into.

    Pretty sure I can make it on the 4th, have to wangle a couple of days off work as I am currently doing a contract in Sydney :-(

    I'll let you know!!

    Jacqui Middleton | Middleton Buyers Advocates
    http://www.middletonbuyersadvocates.com.au
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    VIC Buyers' Agents for investors, home buyers & SMSFs.

    Profile photo of DWolfeDWolfe
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    Yeah look I am super conservative with figures I hate being caught out. I may be out by 5 or 10k but better to be over than under.
    Plus I would hate to give anyone looking to get started a figure that may cause them problems.

    D

    DWolfe | www.homestagers.com.au
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    Profile photo of christianbchristianb
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    gaye81 wrote:
    Hi there I have been told that if I wanted to buy a property to build some town houses on that I would have to buy a property that already has a house on it and knock down the exiting house to make way for the town houses as all new land now have covenants on them which will not allow you to sub divide the land. I would be grateful if some one could help me on this as I am quite new at all this. I am looking in Victoria could some one please help. Thankyou

    Most new estates, and some older ones, have single dwelling covenants. These are extraordinarily difficult to get rid of. You can find out if a property is affected by a covenant by doing a search of the property title. As ever, DWolfe has given some good advice, that is to say most of the desirable areas for sub-division are the older established areas that are being progressively infilled.

    Profile photo of christianbchristianb
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    JacM wrote:
    How much does a subdivision actually cost?  DWolfe you sound like you know a bit about the topic…

    Technically, a sub-division only costs as much as the surveyor's fees, town planning (council) fees and LTO fees. At may also be necessary to carry out a full TPP submission before a DA or TPP can be considered by the council – they want to know what will happen to the land if the sub-division is granted! Of course in practice is fairly complicated and requires the input of several consultants and someone that can keep the process in line! As mentioned elsewhere in this thread it'll probably take longer and cost more than you first anticipated. The costs can be understood and controlled from early on by getting the right people involved. The time….well that's another matter.

    Profile photo of DWolfeDWolfe
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    Hahah, need to get a life do I? Too much lurking here? (Too much chatter ) You're the expert Christianb on subdivisions, nice website by the way just looking at it now!

    D

    DWolfe | www.homestagers.com.au
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    Profile photo of DWolfeDWolfe
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    Christian will you be coming to the get together in Melbourne, sounds like you would bring a lot to the party especially in Melb with the subdivision bonanza that is going on!

    DWolfe | www.homestagers.com.au
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    Profile photo of christianbchristianb
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    DWolfe wrote:
    Christian will you be coming to the get together in Melbourne, sounds like you would bring a lot to the party especially in Melb with the subdivision bonanza that is going on!

    Thanks for the compliments on the web-site. Yes, I want to be part of the get-together in Melbourne (as an investor, not a consultant!) but haven't received anything more on the email. What's the go with time and place?

    Profile photo of DWolfeDWolfe
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    If you email aabbcc he will email you all the details. If you do a search on the Melbourne get together you can find hes email etc, it's in the active topics. Seeya there!

    D

    DWolfe | www.homestagers.com.au
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    Profile photo of quickchickquickchick
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    A few tips I've learnt…

    Near (walking distance, not backing onto the tracks!) railway stations is a good spot.
    Covenants in NSW often expire after 10yrs, not sure about Vic. Ask council.

    quickchick

    Profile photo of gaye81gaye81
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    @gaye81
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    Hi Every one I would like to thank every one for there help and I am sure I will post more questions when the time is right as I am new to all this and this will be my first project thank
    you all

    Profile photo of christianbchristianb
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    DWolfe wrote:
    If you email aabbcc he will email you all the details. If you do a search on the Melbourne get together you can find hes email etc, it's in the active topics. Seeya there!

    D

    Thanks, I saw Adam's update on the other thread initiated by you.
    Look forward to catching up then.

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