Hi all,
I am intending to subdivide my IP in Marsden, Brisbane and sell the back lot to help me with cash to buy a house in Melbourne for my family to live in.I approached couple of town planners around Logan City Council to get an estimate of costs associated with subdividing in Marsden. I received below and got shocked to see that it will cost me over 50K for the whole process.
I was wondering if subdivision experts out there could have a look and let m know what they think since I thought it will only cost me about 20K.FEE PROPOSAL
STAGE 1 RECONFIGURING A LOT
PREPARATION & LODGEMENT OF APPLICATION· Consulting with Logan City Council with regard to the proposed application.
· Desktop Investigation of the subject land.
· Site visit to assess the site conditions that may further influence the application.
· Carry out a detail survey for the purpose of providing information necessary for the Plan of Development, including:
· Location of existing buildings, major trees, visible services and other details on block and roadway which are relevant to application;
· Sufficient boundary location for development application;
· Benchmark on site to AHD;
· Produce contours and detail in a hard copy format to accompany application to Council and in digital format for other consultants.
· Prepare Plan of Development showing proposed lot layout.
· Preparation of Development Application.
· Completion of Development Application and submission to Council including Report.Survey Fees: $ 2,800.00
Town Planning Fees: $ 3,500.00
Council Application Fees: $ 955.00PROCESSING OF APPLICATION BY COUNCIL
· Follow up Council for issue of Decision Notice and conditions of Development Approval
· Advise client Re: Decision Notice and conditions of Developement Approval $ 800.00
TOTAL COST WITHIN STAGE 1 (Excl. GST) $ 8,055.00STAGE 2 OPERATIONAL WORKS DESIGN/ APPROVAL
PREPARATION & LODGEMENT OF OPERATIONAL WORKS APPLICATION
· Preparation of operational works designs and drawings by Civil Engineer for approval of Logan City Council
· Preparation of Contract documents by Civil Engineer
· Operational Works approval issued by Council
· Underground electricity & telecommunications design by Electrical Engineer
Civil Engineers Fees Design Phase $ 3,500.00
Electrical Engineers Fees $ 5,000.00
Council Fees $ 1,514.00
TOTAL COST WITHIN STAGE 2 (Excl. GST) $ 10,014.00STAGE 3 CONSTRUCTION
CONSTRUCTION COSTS· Water supply connection to each new lot ($5,000.00)
· Sewerage connection to each new lot ($5,000.00)
· Roofwater drainage connection to each new lot ($5,000.00)
· Underground electricity and telecommunications connection to each new lot ($5,000.00)
· Construction of driveway within access strip ($6,000.00)
(Very preliminary estimated construction cost) $26,000.00NOTE: The above estimated cost should be used as a guide only and final costs are very much dependant on Council approval conditions, location of existing services, availability of Contractors and rates at the time of construction.
FIELD SURVEY
· Set out for construction ($1,000.00 if required)
· Mark new lot boundaries and place recovery marks ($3,000.00)
· Prepare survey plan showing reconfiguration ($900.00)
Total Field Survey Fees: $ 4,900.00TOTAL COST WITHIN STAGE 3 (Excl. GST) $ 30,900.00
STAGE 4 NOTATION OF SURVEY PLAN
PLAN NOTATION
· Prepare notation, sealing application and lodge plan with Logan City Council
· Follow up sealing of survey plan
· Collect, audit and endorse sealed survey plan
· Sealed and endorsed survey plan to client for lodgement with Department of Natural Resources and Water for registration and issue of new titles
$ 1,000.00
COUNCIL SEALING FEES AND CHARGES
Council Fees: $104.00
COUNCIL CONTRIBUTION CHARGES
Water Supply headworks contribution:$ 2,828.80*
Sewerage headworks contribution:$ 2,950.40*
Parks contribution:$ 5,250.00*
Concrete footpaths:$ 630.58*
Street lighting:$ 225.00*
Footpath trees:$ 412.74*
Road transport infrastructure:$ 3,047.97*
*Charges are an estimate only, based on 2007/08 rates and are subject to annual change
TOTAL COST WITHIN STAGE 4 (Excl. GST) $ 16,449.49STAGE 5 PLAN REGISTRATION
REGISTRATION & ISSUE OF NEW TITLES
· Lodgement of sealed, endorsed survey plan with Department of Natural Resources and Water for Registration and issue of new titlesDepartment of Natural Resources Fees $ 399.80
TOTAL COST WITHIN STAGE 5 (Excl. GST) $ 399.80OTHER COSTS
ADMINISTRATION FEES
· Liaison with, and coordination of all other consultants and parties involved throughout the project. These may include Civil Engineer, Electrical Engineer, Draftsman, Surveyors and LCC
· Management and supervision of the project generally $ 1,000.00- $ 1,500.00COSTING SUMMARY
STAGES
SURVEY/PLANNINGFEES COUNCIL FEES, CONSTRUCTIONOTHER FEES &CHARGES Stage 1 $ 7,100.00 $ 955.00 Stage 2 $ 0.00 $ 10,014.00 Stage 3 $ 4,900.00 $ 26,000.00 Stage 4 $ 1,000.00 $ 15,449.49 Stage 5 $ 0.00 $ 399.80 Other Costs $ 1,000.00-$ 1,500.00 $ 0.00 Sub Total: $ 14,000.00-$ 14,500.00 $ 52,818.29 TOTAL $ 66,919.29-$ 67,318.29 (Excl. GST) Any advise would be much appreciated.
Cheers!
amaljaya
And home buyers complain about housing affordability!
I'd go in and see the Council town planners personally just to back up the costs in my own mind. You can't escape the council contributions however the cost to provide all of the infrastructure would be cheaper once it is tendered out to sub-contractors – the tps have only given you an estimate.
Shop around with regard to the town planning & surveyor fees. You might approach a couple of surveyors who are experienced in land subdivision (ie do it on a regular basis) – confirm the works involved, the extent of documentation required, consultants that they would bring into the mix.
Hi
I am doing a 1 into 3 subdivision in Loganlea around the corner, i have just about completed the operational works stage.
The total cost for the processes you have outlined will come to the range 95 – 105K for my project.
This does not include holding costs.
The outline you have given above is about right – it is an expensive process.Good Luck.
David.I'm with David, I thought it sounded on the cheap side!
Although i have not done it personally, i do find development sites for a number of developers in the south east QLD region. and yes, i work off a figure between $65K – $80K per lot for development costs (depending on the are/council) when looking at paddocks.
hope that sheds some light on the issue.
I was ready to subdivide in Deagon around 12 months ago and was looking at similar costs.
Just for anyone that is interested, Ipswich city council has recently waived the Council contribution charges. (naturally the council could revoke that at their whim). At the moment the council sees a shortage or land and want denser housing so have introduced this incentive.
I'm taking advantage of that and perhaps anyone in the Ipswich shire should consider it now. It will be a saving of about 15k.
My surveyor says total costs will be between 20 and 30k so for me it is doable.milly
Quote " i work off a figure between $65K – $80K per lot for development costs" end quote
Surely the cost per lot decreases significantly when the number of lots increases?? If 1 into 2 costs $80k, does 1 into 5 cost $400k? (that's a scenario I'm currently evaluating in Logan City).
Don’t forget to add a contingency amount should things not go as planned.
Adrian and Amber Zenere
http://www.RealEstateDevelopmentClub.comHi all,
Great info all round on this site…
We are currently looking into Ipswich area subd's (1 lot into 2) and have done quite a bit of research on the area and into council guidelines etc…
Just wondering if any one else has any tips / experience in this location, as the subdivision angle is fairly new to us (have always followed the buy and hold strategy so far).
Milly – if you're still out there, how did you go with yours in that area??
Incidentally – all the feasos i've put together seem to concur with the above figures as well.
Cheers
Rhino
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