SUBDIVISIONS

The following is an extract of a document off our website that explains further about subdividing:
What is Subdividing?
Subdividing is when a piece of land is split into two or more pieces (ie separate lots). The process is controlled by the local Council. Planning codes and procedures vary significantly between Councils and also between States and Territories, as do the relevant fees and charges.
Factors to examine when considering a Subdivision

• Local town planning regulations

• Land zoning restrictions
• Minimum size of lots
• Access to water and sewerage services
• Setback requirements
• Minimum building envelopes
• Parks and open space
• Easements
• Vehicle access including Council refuse collection
• Storm water management
• Increased noise from new development
• Environmental and heritage issues

Hidden Costs
 A subdivision can take several months (and sometimes even years) to complete so you must factor in your holding costs such as:
• Interest
• Rates
• Land maintenance – (eg slashing and weed control)Many astute Developers make the purchase contract for the land subject to the acceptance of a Development application approval with Council. This is usually done with an option agreement (see your Solicitor for more information)  
  Dividing the Land
 Before you rush out and build a new dividing fence in your backyard, you should first consult your local Council for specific guidelines and costings, as it is imperative that the property is divided correctly. Any errors at this stage will cause major problems further down the track.
 The Process
Most Councils require a Development/Planning Application to be lodged, together with details and drawings of your proposal. A Town Planner or Surveyor can assist you with this process, and they may also be able to give advice regarding conditions that the Council is likely to require.

Before lodgement of the Application, you can ask the Council for a “Pre lodgement” meeting to discuss your subdivision and determine what issues will need to be addressed in the Application.

When the Council receives your application, they may require you to erect a notice board for public viewing. The purpose of the board is to alert the public of the proposal by providing details of the subdivision. The Council may also write to the owners of the residents of the neighbouring properties advising of your intentions. We suggest that you contact the Council to find out what procedures your local Council uses.  
Additional information the Council may require Water and Sewerage 
  • Are existing services available?
• Can the existing infrastructure cope with increased use or need upgrading?
• Is permission required from neighbours to access property?
Storm Water • How will storm water run off be managed?
• Is a drainage pit required?
• Are tanks required to regulate the flow of storm water?
Noise • Will existing main road traffic noise affect the subdivision?
• If so, how will this be reduced? (Fences and/or earthworks)
Soil Conditions • Do the soil conditions (eg.sand, clay) impact on road and footpath design?
 Other issues

• Footpath
• Lighting
• Signage

Issues for the Developer to consider For the Developer there are also other issues to consider such as:

• “Wasted” land due to unusual configurations
• Steep slopes
• Flood-prone land
• Other planning overlays (ie restrictions)
• Other factors that may reduce the number of lots and so profitability.

Approval of the Development Application
The approval process for your Application may take several months depending on the complexity and size of the subdivision.

You will then be issued with a conditional approval covering topics such as:

• Developer to supply a plan of survey and mark land with survey pegs
• Road reserve
• Easements over stormwater, water and sewage mains
• Requirement that storm water pipes be designed to cope with a “1 in 100 year” event.
• Dust control
• Hours of permitted work (usually Mon – Sat 6:30am to 6:30pm)
• Headwork contributions to be paid by Developer
• Open space (parks)
• Social infrastructure
• Road infrastructure
• Water infrastructure
• Sewerage infrastructure
• Street scape contribution
• Disposal of cleared vegetation
• Entry walls or features
• Connection fees to live sewer mains
• Road (width, pavement depth, footpaths, kerb and channel, ramp profiles)
• Street lighting
• Fire Extinguisher (Battle axe blocks)
• Underground electricity and phone
• Erosion and silt management
• Maintenance period of roads
• Retaining walls
• Fire ant inspections
• Portable long service leave for Building and Construction Industry

If you are not satisfied with the Council’s decision, you may apply for a review. 
  Operational Works
Before work can begin, you will need to engage the services of a Civil Engineer to design and draw the sewer, water, road, footpaths and any other Council requirements.

This is a separate application usually referred to as “Operational Works” and attracts additional fees and charges.
Final Stage
All civil work will require Council and Engineering certification. When the subdivision has been completed to the satisfaction of the Council, you can then apply to register each separate title deed.
Conclusion
Land subdivision is a $mart way to fast track profits into your investment portfolio. However, as with all investment decisions, thorough research is necessary in order to balance the level of risk associated and ensure that the process runs as smoothly and quickly as possible, and that the best, most profitable outcome is achieved.

Hi Amanda

Just a question:
If one buys property with land  say 800m2.  Lets say its on a corner and the house is in a position where it is easy to subdivide it in half.

Is all of the above the process to have to go through, for just one diviision of land. 

Cheers
SG

I'd first have a chat with your Council as they all have different procedures but the process is similar.   In the situation you're describing you'll still need to contribute to footpaths around both sides of the whole property, plus upgrade the existing driveway if necessary.  You may also find that even if the existing house has no storm water that you'll need to upgrade both places with new pipes/sewerage etc..  Best to check the process in your area first  it does take a long time, even years to finish.  We started one in  Oct 2004 and its still not through yet, and has been in Council for final processing for almost 3 months as they are just so busy.