Hi,
I have an agreed price for my first subdivision deal however I'm plagued with uncertainty on how to proceed. I hope to get some ideas from experienced people out there.
My block is a potential 3 in 1 subdiv where I can keep the house at the front and create 2 new lots at the back.
Problem: Council have plans to build a road through the back of my land effectively creating 2 street frontages. This would be a good thing except that the plans have not been executed for over 15 years due to the neighbours not agreeing. However, as DA for subdiv are submitted covenants are created over the lots that require the land to be handed over to council and the cost of the road to be funded by the landowner. Expensive!
Possible scenarios I see:
Scenario #1 Council will still need to accommodate for the road plans as part of their approval.
Impact
– The land of approx 80-100sqm would have to be contributed by me at no compensation AND council have indicated that the land owner will need to pay for the road build. Whether this will be at the time of the DA approval or a later date is up for question.
– If council still want the road I anticipate the build of it is still many years away so any benefits such as dual street access cannot be capitalized on within my plans.
– This will impact resale value of the block of land AND time to sell.
2. Scenario #2: Council will decide after a petition attached to my DA submission that the road plans will be cancelled
Impact
– The DA submission will be straight forward it this is to be the case, however the time for council to make this decision is unknown.
Scenario #2 seems the likelier case from my discussions with council however nothing could be committed.
My verbally agreed price didn't factor this in as I did not know how to budget for this. I have yet to sign the paperwork so still have some decision making time. I do have a good price agreed but not a great offer that would have room to absord these extra road building costs
My question is – what would you do?
Thanks in advance!
My
stran I have a similar problem as you, but my road ( virtually a drive way) is owned by council approx 200mt that my DA states I must upgrade before construction starts.
On the other side of my property council has plans to construct a road down the side and this would give me three street frontage , front, rear,and side.
I have waited 4yrs now for council to start construction but nothing while my DA slowly expires.At the end of the day if I pay for constructing a new road to allow my subdivision to be completed it's not really viable.
I'm now considering using the road funding to strata title the complex instead of creating two seperate lots.Is it possible to strata title instead of paying road costs?
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