Hi All
I am new to investing in Property, going through STEPS at the moment..
Looking to invest in a battle-axe type property, sell the land and house separately after dividing them.
And advise from experienced people out there who done this type investment.
Appreciate any information that I should look out for.
Manoj
PS: I am in Perth Western Australia
Hi Mahoj01,
I work in the project industry and am also in the process doing a battle-axe development myself. What stage were you up to? Have you purchased the site as yet?
HI Jessicak21
I have not purchased any yet. doing the research and gathering information.
Plus setting up the company structure for investing.
Which stage are you in and where are you based in?
Cheers
Manoj
Hi Manoj01,
Above all, the key is going to be to look at the council regulations surrounding zoning, building and subdivision in the area where you intend to buy. You do not want to encounter a situation where you buy a house and then find you cannot subdivide it due to some regulations about minimum lot sizing, for example.
Secondly, you want to ensure that, after subdividing, the land-only component can still have a decent dwelling built on it under council building regulations; for example, there are often rules regarding how close to the fence-line one can build, so if the land is too small, then there may be heavy restrictions on the house that a buyer could build there, and that would reduce profitability when selling.
Hope that helps!
HI dnl248
Thank you so much for the information.
I am aware of the land sizes, R codes here in Perth.
Found out recently that if the property is financed I need the approval from lender and getting the titled released for the land part will be complicated
Cheers
Hi Manoj01,
Adding to the information that dnl248 provided, it is also worth noting that it is best to looking for a property with the fall going towards the street for the likes of storm water runoff as it can be an expensive exercise dealing with the storm water otherwise.
I am based in Dungog, NSW and am in the pre-DA stage currently, arranging for geotech reports and surveys to be complete.
Cheers.
Before purchasing, speak to a local town planner. The medium density design guide lines come into force in September (with some restrictions) you will need to tread very carefully. Basic rule of thumb, to build a single story 3 x 2 home you will need a lot of 300-320m2. If the lot is smaller than this you will have to build 2 story. Whilst this will work in high socio economic suburbs, eg Doubleview or Wembley, it won’t work in suburbs such as Girraween or Balga.
there are a lot of titled sub 250m2 lots for sale (especially in the city of Joondalup/Swan) that you cannot build on profitably.
Hi David
Thanks for the info.
I live in surrounding area of Joondalup. Not long ago Joondalup and Wanneroo council’s approved granny flats.
With sub divisions around Balga and Girraween, I think they will follow the pattern of Balcatta area, where most of the blocks subdivided already and in high demand.
What are your thoughts?
Thank you
Manoj
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