I have an IP on a very large over 2000sqm block of land in a rural town. It is a difficult IP to rent, as tenants take one look at all the grass to be mown and don’t want to rent it.
I have checked the council planning map and the block would be easily subdividable straight down the middle into two blocks. There is a similar subdivision already done in the street behind mine, so that middle boundary line could just continue straight up through the middle of mine.
The IP is a little too close to the middle, but moving the carport on the side of the ip, to the other side would fix this problem. Note, land is very cheap in this town, so the new block would be only worth around $10-$15k once subdivided.
Any idea on costs involved in this? Approx $10k or could it possibly only be $2-$3k?
If it was cheap and easy enough to do then I would just sell off the block, as I can buy an IP investment cheaper than building or moving one to the block in this town. House prices are only around $100k and rents around $125k.
If you want to get out of a hole, first stop digging.
Hi Brenda
Key questions to ask Council:
~ What is your Headworks charge?
~ Will you DEFER HEADWORKS CHARGES UNTIL I SELL THE BLOCK and/or build on it myself? (Crucially, most councils in small towns are flexible, support development, and prepared to negotiate)
~ What are your other charges?
~ What is the exact location of sewer and water pipes on the block? Crucial re placing buildings on the blocks
~ What “footprint” do you allow (ie., the ratio of the total area of the slab to total area of the block, crucial if you want to build units etc)
~ What is the zoning on the block?
~ How many metres street frontage do you require on each block? Another crucial question, because if you don’t get hung up on the “neatness” of linking your new boundary line to the line on the back block, you may be able to run the boundary across the block at a slight angle, thus saving yourself the expense of moving the carport to the other side.All the above is academic. The key question, as you don’t intend building on it yourself, is “Will someone buy my new block, or will it sit there unsold for 5 years?”
2000 sq m is a good size. Apart from your lawnmowing problems, does the town enjoy high rental rates for quality properties? If so, and you can buy another IP cheaper than building it yourself (remember, new brick buildings are much better re depreciation etc) would it be more feasible building a duplex or triplex or block of 4 units (strata or non-strata)?
Good luck
Greghi brenda
headworks in central vic are around 12k
check if easements are required across neighbors properties and talk to them before you get too involved with permit fees
steve
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