Does anyone know much about this topic? Looking at buying a block of land (house in place) renting out that house and subdividing the land to build another house. There is 2 street access and the block is 1780sqm. It would be cash flow positive just with the one house, but would eventually knock that down and build another house as it is a bit of a dump, but will be useful to have money coming in while the other one is being built.
What kind of costs are involved with the process of sub division and what maybe the reasons that the council may knock the subdivision back?
Jo
Hi Jobee,
The first thing you need to find out is what the current zoning is. This will set the limits as to what you are currently allowed to do with the property. Contact the council for details of what the zoning allows.
If the zoning doesn’t allow you to do what you want, you’ll have to go through the extra hassle of getting in re-zoned.
Don’t know the rest, never having done it myself (but planning to in future).
However I’m sure the development gurus here can help ….Cheers, Paul.
‘The main thing is to keep the Main Thing, the main thing’
It is zoned residential.
… ok, I guess the next thing is to find out minimum residential block size allowed.
Have you considered townhouses ?Cheers, Paul.
‘The main thing is to keep the Main Thing, the main thing’
Hi Paul,
There isn’t a lot of need for townhouses, its only a small town population of about 5000.
Plus, then i wouldn’t be able to collect rent on the existing house as I would need the whole land for that purpose, we may throw around the idea of flats if we decide to go ahead.Hi Jobee,
I have already PM’d some development website references before reading this thread in full.
But………………..wait for it………………
If the two is only 5000 people I would hazard a guess that there is still plenty of land available for Joe Public to buy and live on.As such there may be two crucial issues for your consideration and/or research – is the council development attuned (I suspect that they aren’t even at this stage yet – a call to the town planner, if they have one , would be worth it)
Secondly (and if I am right) I suspect the local residents are more inclined to have their 700/800 or whatever sq m of land in preference to higher density living.
But then again – you may be on the cutting edge of something. My thoughts are free and should be heeded with that price in mind.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Derek,
Actually, there isn’t a whole lot of land in the town and the land is going quick when it comes available.
There are 700 jobs being created by October and the town is already in high rental demand.
If we were to subdived, the blocks of land would still be 885sqm and thats the main reason I would be leaning towards 2 houses instead of the flats. Just the nature of the place.
And hey even if we do decide against subdividing, I can still collect positively geared rent on the existing house. So the subdividing would be an added bonus.
Will definately give the town planner a call though.
Thx again.
OK,
I’ve been reading about sub division from other posts and the general concensus is to call the town planner. So i ring them but does anyone have any suggestions on what I have to ask them? Obviously the minimun block size but I’m sure there are other things that I should know about.
Keeping in mind that I haven’t bought the house/block yet.Hi Jobee,
Ask them if the block is able to be subdivided and if so what minimum lots sizes will they allow and boundary clearances.
Will they endorse a subdivision application?
Then ask about services (power, water sewerage etc) and chances are they will refer you to the appropriate authority.
Derek
[email protected]Property Investment Support Available. Ongoing and never stopping. PM welcome.
Hi Jobee
I have just done what you are looking at doing although our block was only 1000m2. The main problem we had with council was side access down beside old house to build new one. They wanted 4m we had 3.6.To cut a long story short we got approval as dual occ which was ok as we live in the new house and rent out the old one and will never sell.With our council their fees depended on when the land was originaly sub divided. We had to pay $5,000 section 33 contribution fee. We may move old house later and build a new one and can then sub divide if we want. You can get some ideas for doing up your old house off my web site http://www.bestclad.com.au
You will have to figure in extra costs for driveways, parking, fencing, landscaping.
Hope this helps.
RoboJobee,
ps. It will help if you get a builder who has experience with what you are looking at doing. As they will know alot about what council will and won’t let you do and will do alot of the mucking around with council for you, if they want the work. Thats what i found.
RoboThx Robo! Ouch on the $5000. Roughly how long did the process take?
I have been doing a subdivision in Mudgee NSW. It has been going for over two years and only just now gone to the Lands titles office.
My grand plan was to purchase 50% of my neighbours block 750sq mtrs and join it together with 50% of my block ( another 750 sq mtrs) the new block will be 1500 sq mtrs.
Giving me a 1500 sq meter block on the new street at the rear of my current ppr. where i could build a new ppr on the new block.
It has turned into a money pit
Council fees inexcess of $5000
construct a sewer line $4000 40 meters @ $100 per meter.
Connect to councils sewer main to a depth od 1.8 meters and install a “Man Hole in the road.$4950The existing road to the new block was not sealed so I as the “Developer” had to pay to seal it, as well as install kerb and guttering 40 meters. ( still waiting for the invoice for that )
The quote was just under $15000 incliding the sewer construction( $4000 above ) and “interconnecting drainage”
Lucky I only paid $29000 for the 750 sq meters of my neighbours land.
Surveyors fees $3500
In hindsight I would NEVER do a subdivision involving creating one new block. I would try to find a large block able to be split into at least 8 new blocks. this way you can average the costs over 8 or more assets instead of just 2.
Check out Dual Occupancy you may find you can save a bundle especially if you intend to keep both assets.
I have a ip in mudgee with two houses on the same title 800 sq meters (maybe 805)
I only pay 1 set of rates
Regards
AgeBuy new!
Never Sell!Wow! Thats certainly depressing. Can I have two IP’s with dual occupancy, if I don’t want to sell? I guess that eventually I would sell, would that casue any problems later on?
If you do it as Dual Occupancy and you want to sell just one you would have to Strata them.
But you can just sell them both as a “Job Lot” as you would just one single house.
Age
Buy new!
Never Sell!
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