General views on the profitability of subdividing

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mickgem
Member
@mickgem
Join Date: 2008
Post Count: 1
June 13, 2008 - 11:34 pm
Hi all
My first post to this forum, so forgive my ignorance.
I currently live on a 1400m2 block in the ACT, which is in a core zone, and thus can be subdivided. I always had the idea of sitting on it, and in 10 years or so (when the kids left), knocking our original house down, and putting in units, or a couple of houses. I can’t really leave the original house in place, as there is only a 2.5m gap between the boundary and the house to access the rear of the property.
We have since found a great property to move to, but I am hesitant to sell the house as is, as I feel I have not realised the properties full potential.
I am interested in some general feelings on the profitability of this exercise (I have read some other posts and realise there is a lot of work).
Another idea I have had is just get the plans passed through council, and sell as is, but with plans in place. Or, get a builder onside, and see if I can sell half the property to them???
Any ideas appreciated
mel_d01
Member
@mel_d01
Join Date: 2008
Post Count: 26
July 1, 2008 - 8:16 am
Hiya Mickgem,
wow 1400m2 is a good size.
Do you have a lot of time on your hands? if u do than do the first stage which is drawing up plans + submitting to council. Prior to this meet with a council planner and go through any issues they might have. Pref get a draftsperson to do the plans -maybe consult a builder if issues arise. there are lots of issues to solve, such as services ele, water, waste, access to roads ect. It could take 12months (or longer -depending on your council + rules) to do this process. Try and do it by putting as little money down as possible. for example don't go to an architect or someone that comes up with a nice design -that doesn't work and council won't approve. Await feedback from council if it can be solved continue to get approval.
Once you have approval, get some builders quotations to build the units, and decide from here…..Do you want to spend another 12months or so overseeing the project? If you have a full time job which drains you from your time now its probably not recommended, its going to be another full time job-unless you find a great builder;)
I used to work for a home builder in perth and I worked on unit developments from 1-2 unit projects to 6 unit projects. If you have any other questions please ask.
mel