Hi all
I am new I just have a question I have been wondering about for awhile and
cannot seem to get an answer to…
If you purchase a block or land that is lets say 3300 sq metres and is zoned R40
can you subdivde and sell off land individually? Or do you need to develop?
I guess you would have to apply for titles and sort out water & sewage?
Thankyou:)Well the easy answer is : If it was easy to subdivide, why wouldn't the current land owner subdivide it and then sell it ? From that perspective, you need to do research. Every council has different rules and legistlation on subdivision, so best thing to do is to visit the council and ask them about what the possibilities are for that piece of land. Also ask yourself if it would really make the land worth more, or less.
2 small pieces isn't always better than 1 big piece
Review the LEP – what is the minimum size block under R40? What is the minimum frontage required? If the block complies with those basic requirements then go see council.
To subdivide, you will need to provide services to both blocks (sewer, water, gas, electricity) if they are all available to the current block. You will most likely have to install stormwater and paved driveways to both properties including any access handle.
You will have to get a plan of subdivision registered drawn by a surveyor.
You will have to pay your S94 contributions (for the provision of community services).
Okay
It is across from a new estate ad park so it would be worth more as smaller land parcels.
I agree why wouldn't the owner subdivide himself? I will make a few enquiries, I am not thinking
2 lots I am thinking 8!
There is another property I wasinterested in R40 also and a 5 unit site. From memory
only aroun 1500m sq. Again, I asked why do I have to put units on it can I not sell each parcel?
Eventually I would like to develop in that way but at the moment I dont have enough borrowing
power. I will have to make some calls tomorrow!So what you are saying is that medium density development is permitted at around 300 m2/dwelling. In this case 11 dwellings.
Your best bet may be to purchase, possibly an option subject to achieving a DA. Get the development designed, approved by council and then pay the vendor. Consider your options at this stage to be either sell the site with a DA or to go it alone or with an equity partner.
So selling the property with DA will be profitable in itself do you think? When you say go it alone
do you mean go ahead and get the dwellings built, or do you mean split them up and sell the
blocks? (Sorry I really am newish). Can you get subdivision approval for lets say 8 blocks if zoned R40?
Or do they usually only approve building developments? Thanks:)Not everyone wants to subdivide it themselves,
This is why there are many opportunities out there if you look and do your homework. Everyone has different skills and weaknesses.
One of the reasons vendors dont subdivide themselves is often because they dont know how to do it and are fearful of trying …. sometimes they inherit the land or have had it in the family for many years …. do your research. Another reason is because they dont have the funds to do it, each subdivision could cost you between $20-30K plus depending on which state the land is in …. you may also have to consider access to rear blocks if they dont have frontage access …. these costs will add up …. an access road could cost you $100K for example depending on the size.
I thought that sub division costs would be; council application, fencing if required,
sewage, and electricity. I do understand a road may be required but I did not think it would cost 100K. Gee I might get a bitumen truck myself lol. I have been looking into it, and its really strata lots I am looking at.
I am in WA.The fine line between profit and loss is …… attitude plus research, research, research.
As I dont know the dimensions and layout of the block … I cant tell you how much the road woudl cost and even if a road is required, but it's usually very difficult to cut 8 blocks out without at least two frontages … without an access road built. $100k as an example would only add $12,500 in costs to each block!!!
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