Welcome to the forum.If you are intending to buy and subdivide, I would caution that you do the sums carefully. Subdivision can be lucrative, buy the costs can be prohibitive. As a general rule, it is more profitable to subdivide valuable land.While this may sound obvious, what I mean is that it essentially costs the same amount to subdivide a…[Read more]

We are seeing a lot of small lot proposals of late, and it seems to be an emerging niche. Densities are being reconsidered and suburban properties are being looked at quite differently to say five years ago. In positioning ourselves as Small Lot Specialists we have given some thought to what in fact constitutes a small lot. And the answer varies…[Read more]

Work everything out on an "as if complete" value. This is what the bank does, and really it seems to make sense. So, you have the current value of what you own – or are intending to acquire – and then the value of your proposal as if it were completed right now.That's always a useful starting point.As a quick feasibility tool consider this…[Read more]

Mustafa,Firstly, it's often difficult to "resurrect" a town planning application that has lapsed. Get in touch with council and seeks their views on this application in the context of any changes to the planning scheme which may have occurred.If you are looking to subdivide down the middle – as you put it – it may be possible to subdivide the land…[Read more]

The changes being talked about are not so much for property development projects, but for the scores of other permit applications that clog up the system. Anything from a Town Planning Permit for a cross over (I had to do one for a client last year, and it cost thousands and took months) to a street table permit.Any subdivision and/or development…[Read more]

My advice would be to investigate the options carefully, and measure those options without emotion.

Thanks for that itsandrew, it would be welcome….

Notwithstanding the very important issue of planning advice; and I would recommend getting advice from a private planner, one can determine some basic parameters by mathematics.Take the dimensions of the land (let's say 15m x 40m) = 600m2Take away the front set back (say 9m x 15m) = 465m2Take away side set backs (50m2) = 415m2Take away parking for…[Read more]

It's possible to use a varnish called "Black Japan" (Feast Watson make a good go of it) that used to be used in the old days. It can be diluted for a lighter finish (then sealed) or double/triple coated for a darker finish.

Gio,Firstly, the numbers look a bit iffy.I would be concerned about spending $450,000 building on a $250,000 parcel of land.As for an equitable structure, you could consider 50/50 in/out, whereby you share costs and profits equally.Or, buy the land in partnership and agree to buy the subdivided land from the partnership for say cost + 30%.Good…[Read more]

Undertake a title search. In Victoria they cost $25, not sure of the specifics in the Emerald City.

Your contract is likely to be in two parts:The planning, design, documentation, project management and subdivision.The building contract.There are both legal and practical reasons for this.A building company may be able to offer an end to end service, however, there will be no competitive tension around pricing as the end product will not be…[Read more]

Terry,The strategy I was considering is to hold all or part, and collecting a yield, over five years.Thanks for your feedback.

Thanks Terry.I reckon there's a strategy there.The greatest depreciation benefits are also over the first five years.So, for a developer, it may make sense to hold for 5 years, in some cases.

Terry, when do they become old enough that GST is no longer applicable?I understand it's 5 years, but I'm not sure.

Any project you take on will take longer than you thought and cost more than you budgeted for, but will probably still turn a profit as long as the fundamentals are sound and the project funding is robust.As for the council fees, front the planning desk, run through your scenario and they'll happily give you some imaginary figures.And good luck…[Read more]

Perhaps if the land is sub-divisible you could subdivide and sell part of the land  – or develop it – while retaining the existing dwelling on a smaller allotment. Two bob each way, as they used to say in the old days.

I do a bit of work with Breece Gevaux at Hub Town Planning – hubplan.com.au – and can recommend his services.The fees, of course, will depend on what you're trying to achieve.So, no matter who you approach, first try to have a good understanding of what it is you want to do.

Sash,It seems the purchasers may be exploiting the situation, which is unfortunate.Should the purchasers rescind, the problem still exists.In my experience, and yes I have dealt with similar situations, the council simply wants a resolution.I sincerely hope it works out, and again if I can assist, get in touch. 

Project home builders are cheaper than small builders. That's not so much an opinion as an understanding.The reasons are manifold and have little to do with quality of finishes.In my opinion, these are the two main reasons:There is less risk, and therefore less margin when building the same thing many times. Think of it this way; there is no doubt…[Read more]