You need to go outside Melbourne- find a block you can subdivide and sell off the new lot to pay down debt or build the dual occ and get 2 incomes to be cash positive. There are properties like this within 100K of Melbourne CBD where rental demand is high- easy to commute to work.
Property may cost around 200K+. Build cost about $150K+. Rental income about 600/week+

Which State are you considering. Subdivision can be profitable in Victoria if done well, in right areas and has good recent sales history.

Property subdivision costs

The following are just some of the costs you will incur for a property subdivision around greater Melbourne.

The cost of acquisition of the land if you do not own it

The interest or holding costs

Your share of equity or the deposit which is usually 10% of the cost of the property

Stamp duty which is 5% in Victoria

Legal costs for conveyancing which could be in the vicinity of $1000

Town Planning Application fee which is around $700 depending on the value of the construction costs

Subdivision permit fee of around $390

Bonds or contributions your local Victorian Council may request. Generally speaking open space contributions apply to three or more lot subdivision. A bond may apply to ensure the landscaping is completed as per approved plans

The Land surveyors fees which can be around $3000 and more depending on number of lots

The Architect and Town Planners fees which ranges from $12,000 upwards. Talk to us for our competitive fee structure

The landscape consultants fee which is under $1000

A civil engineers fee for the drainage design around $1500

The structural engineer’s fee which can be in the $2500 range upwards depending on the type and complexity of the constructionand number of units to be built. Sloping land, poor soil report will affect the engineering and building cost

The fees to prepare Building Permit/Tender documents

An arborist report if it applies. Arborists report on the vegetation on the land and on adjoining properties if applicable can cost around $900

The Building surveyors fee which can be upwards of $1500 if you decide to build. Some developers may decide to sell the approved lots with the plans and permits. A purchaser will then undertake a feasibility study and after allowing for all costs and profit margin, be in a position to make a firm offer

A soil test report around the $450 mark which depends on number of bore holes and size of land

The cost of the construction which can be $1200 per sqm and more depending on finishes and site constraints

The subdivision costs (providing services, crossovers, driveway,landscaping which can add up to $15,000 and more for a simple dual occupancy)

An open space contribution usually applies for three or more dwellings on a lot. The contributiion can be 5% of the landvale on the rates notice

A contigency amount to cover unexpected construction costs which should be 5% of the contract price

The soft costs- professional fees to prepare the development application ( design) and building permit (detailed design for construction) documents. We offer a fixed price affordable fee to do these tasks

There are some in Melbourne who charge very high fees to find a property and more fees to design and get permits. Then there is the one I posted here on the property spruikers who are being chased by ASIC. Money goes and refunds hardly come back in full. Think twice before thinking higher fees equal better product.

• This reply was modified 9 years, 2 months ago by  #Planning Permit.

Well said Geoff!. I was a Toorak man but found South Werribee very exciting- great opportunities lie ahead. A colleague in my Toorak days once said – going to Werribee? Make sure you wind up yor windows! I asked- are you still driving a non electrified car?

I can help you find development property around Melbourne , obtain permits at a competitive fee.

Adding value is the best way to grow. Find a property with a big backyard where you can build one or more additional houses. Or find a corner site or one with a wide frontage where the local council may allow a side by side duplex. Its great fun as long as you know what to look for. Feel free to contact me direct or read the other posts on Property Investing I wrote on finding good subdivision site criteria. And watch out for covenants on title. It might restrict development!

Hi, I asume you are looking at property in the Melbourne area. If that is the case the SBO in simple term means there is a chance the site may flood. Usually that information was imposed by Melbourne Water and I have found local councils have their own SBO which unfortunately may not be on the Land CHANNEL MAP!!!

Hi I have a lot of experience with Geelong Council and there is hardly a town planner there who does not know me. Feel fee to directly send the property addrss so that I can check the schedule to the zone. Usually Belmont requires more open space than some of the oter suburbs in Geelong. and thats why Belmont is desirable to home buyers.

Which state and city are you looking to demo and subdivide. Some Councils in Victoria may require a development application before you can subdivide and register the titles.
Generally allow at least 15K upwards for subdivision costs- driveways, utilities connections etc. Demolition costs can vary again depending on building materials deployed. Soft costs to take to Council can be around $20K including fees etc.