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You would probably need to arrange a boundary definition survey, contours/vegetation (trees) as well as services identification & location of adjoining buildings (neighbours houses/structures).
In the first instance, it requires the surveyor to put pegs in each corner of the site, the second picks up on any fall/slope/natural features on the land.
The adjoining buildings survey is required for the DA plans to show the relationship of your neighbours' houses/windows to your proposal.
If you are in control of the initial survey you will only pay for it once, however if each builder requires their own survey you will pay twice for the same information.
There is no requirement for lodgement of any of the information gatherered from the surveys. The surveyor's pegs (or marks) will just save the second surveyor some time (but not you).
Not surprising at all really. I've been looking at several 4B around Lane Cove/Lower North Shore. 3 Bed you're dreaming for sub $1m regardless (almost) of the conditions.
A few basic questions:
Which area is it in? (state, town & council area)?
What is the zoning? (From the council map)
What is the minimum area for the type of development under the zoning?
Is there a minimum frontage required?
Do you intend holding & build, achieving DA & selling or sell without DA?
In the case of a) & b) – are you funding the development or will it be up to the developer/JV partner?The development plan is there to control excessive development – it defines what you can or can't do. If you go outside of those constraints it will be rejected. If however you skillfully interpret these guidelines then you can maximise their requirements eg carport extending out to the street boundary providing it does not contact the house (hint) etc. Sit down with the planner who wrote the report and run through the issues – I can fit a van with roofracks & ladders or a 3t tipper under my carport (not that I have a van), if I felt inclined I could enclose it & put a shutter on it too (considering that it goes almost to the street, this is a garage by stealth).
You would have a small window of time to appeal the decision.
Generally speaking, the more that you can get onto a site the better ie if you can get 2 t/hses for say $270k, you will be getting your return of say 5% rent on ($300K+land) whereas if you only built one house you'd only get your 5% on ($200k+land). You spread your risk over 2 (or more) houses etc. Sure, council will put their hand in your pocket for subdivision costs, development contributions etc but you can quantify all of that well before you commit to building and factor all of those costs into your development model. If subdivision is allowable, then you may be able to sell one or both separately.
On the other hand, if you determine that you can get 3 onto the site, (and everyone else is working on 2 per site), then you have made the site that much more valuable.
Why pay for something you don't need? When the time comes for IP#2, use your line of credit or equity in P#1 to fund the deposit.
If you can afford to buy a property for someone else, why bother with rental assistance? Technically you can spend your money however you like however you will be required to explain how you have emptied your bank account and this will affect your ability to receive entitlements for 5 odd years (same as a pensioner having restrictions on getting rid of money to qualify for the pension).
Part of the problem is owner-builders think they can whereas Bob the Builder says "yes we can". The builder is professionally trained (well, most are), they understand the skills required in construction management (time, cost, quality), they know how to budget (or they go bust), they know how to stick to a program & the ramifications of being late (hip pocket/liquidated damages), have a watchdog (toothless, admittedly but none the less requires licensing), are subject to the client's bank approval (for progress claims), do 'it' for a living, etc….
Whereas the owner-builder isn't hampered by professional standards, has very little regard for efficient business practices, has no skill in estimating (the big bits possibly but not prelims, safety, site costs, incidentals etc), has a limited grasp of OHS & Principal Contractor requirements, never heard of SWMS, planning??, project management, attention to detail, buildability etc. There is little wonder why banks don't like owner-builders.
I'm not on a hobby-horse but like to see a quality product for the next occupant/investor who may not know that their pride and joy was jerry-built as the critical elements remain hidden from view..
Pretty much as Matt points out – most display homes are refurbished before hand over including carpets, painting and anything which has had excessive wear and tear (just think about 100 people each weekend opening & closing kitchen cupboards, turning on taps, slamming doors, sliding wardrobes etc.
Areas to be wary of are the toilets (some are dummies), garages (as above), air conditioning units/hws (may be quite deteriorated or nearing the end of their lives).
The one big advantage is that you are locking in a tenant in an area which will only be more developed by the time it becomes vacant.
Thanks Scott
That is precisely why you would engage a valuer – they have access to the full range of data (and if briefed properly, the right COMPARABLE data) for the market segment that people are looking at.
It is of no value to look at median sales prices (which may include one, two and three bedroom houses) when you are looking at 4 bedders – it takes more research than the commonly available freebies. Likewise with rentals, you will need to doorknock agents or check their online listings rather than newspaper adverts, do the drive-bys (or google maps) etc to see what is truely comparable, then form your own conclusions.
It'd almost be cheaper to rip it out and replace with new at that price.
Generally, lodging a planning application for the subdivision will only happen once the building has been brought up to comply with the BCA. The BCA upgrade, will in all likelihood, require a separate DA/CC. Councils are generally serving 'upgrade notices' or 'fire safety orders' on many buildings in order to bring fire safety in older buildings up to current requirements. By requesting a subdivision, you are bringing forward that liability to undertake the works.
Speak with one of the council town planners to confirm what they will require.
By the time you have seen these median prices they are often already wildly out of date. I remember seeing something on Greenwich (Sydney) having a 2 bed unit median price around $365k last year saying it was a great buy & get in quick etc. Next issue of similar magazine (few months later) median was $450k. Following article for projections was a drop of 12% in the following year.
Why? It depends greatly upon the time of year and when the stats are taken.
In the first instance, the author was relying on a 12 month median (not a rolling median) at a time when there was very little stock on the market due to GFC, no new work hitting the market, owners not being adversely affected by GFC forced sales etc.
The second article was skewed as a major project was completed (over 55's upmarket development) with very few resales of older units.
The third projection, took out the wash from the new sales & some return to normality.
Tenancy law varies from state to state so you will need to refer to the tenancy tribunal in your state.
It sounds like 8-10 months too long unless it is a difficult site (sloping, heavily treed, poor ground conditions, alot of siteworks prior to commencement, very complex design etc).
You will need to speak to your solicitor regarding the transfer of ownership (with input from your accountant etc if you are to hold the property in something other than your own name). You will also need to arrange your finance.
Usually the other way around, get the owner on a hook subject to finance & satisfactory building inspection.
Suggest that you check with the Dept of Fair Trading whether the builder has had any judgements against them.
Ensure that the contract for sale included a copy of the Home Warranty Insurance, confirm the defects period (usually 13-26 weeks), have a building inspection undertaken (yes it is new but a building inspector can tell the difference between sh!t and clay), also you will need a copy of the occupancy certificate.
As for BC fees – the developer is responsible for undertaking & registering the strata plan and to appoint the initial strata managers (but your solicitor can advise here). The Strata Managers will establish the Admin & Sinking Funds, there are limits on the representation & powers of the developer over the appointment of strata managers whilst there are few independent owners.
If you have another floor above you then it is very likely, a building inspection should confirm it though.
