I have a 1550 m2 battleaxe block (owned outright). The property between it and the road is about 1100m2 and will shortly be put on the market. The blocks are on a gentle slope. Both blocks have old fibro properties, neither of which is worth renovating. A local (Hornsby, NSW) real estate agent estimates that my property is worth $575K and the other is worth $525K. My intention is to buy the other block, clear them both of houses, sheds, trees, pool etc and then do one of:
a) sub-divide into four / five separate blocks and sell the blocks individually
b) sub-divide into four / five separate blocks and put a detached house on each (building one at a time to keep the cash flow under control)
c) sub-divide into a strata and put up a run of six town-houses
d) sub-divide into three /six and put up three duplexesI have not been involved in property development before, so let me ask you the basic questions.
1 I need to find out what Hornsby council will / will-not allow by way of minimum block size, whether they will allow town-houses etc. Can I rely on the real estate agent for accurate advice or do I need to engage a professional (if so, what sort?) to identify the council’s policies and negotiate with them?
2 If building, I’d envisage using a project home builder with a standard design, rather than architect-designed. Is this realistic for town-houses?
3 Again, if building, I would expect to employ a professional to keep an eye on the builder – check quality of work, adherence to contract etc. I know enough to know that I don’t know enough to manage a project like that. What sort of professional would do this, and how do I go about finding one?
4 Cost calculations estimations: does anyone have a spreadsheet or a set of basic “estimations” (eg $X per square metre for a standalone, $Y for a duplex, $Z for a town-house, so I can work out some order of magnitude costs before I go any further?To me, the critical thing is to find whether the project makes sense from a commercial standpoint, without fancy financial engineeering. Once I';m sure the basics hold up up, then I can look into the best way to finance it, talking to an accountant about the options
1 – Don't rely on the REA, in the first instance speak to the town planner at council (Hornsby is reputedly difficult to deal with ie very slow). In the first instance you could probably deal with council but if you need to get a spot rezoning it may take up to 2 years (so avoid a spot rezoning).
2 There are a few project home builders who do townhouse/villas however you can also approach some commercial builders with plans or on a D&C/Turnkey basis
3 PM me for details
4 http://www.bmtqs.com.au/construction_cost_table.htm (Use with caution). Best to get yourself a copy of Rawlinsons Small Builder (from TAFE library or purchase but it is not cheap) also use with caution.
Go to the Council website and download their city plan (Should also be available in hard copy at their offices). This will list the councils minimum lot sizes, and maimum unit density for your area along with other restrictions (Height, parking requirements etc). If this is a bit confusing you can always try calling the council Town Planning department to confirm what the real estate agent has told you (They won't spend too much time with you, but you might get lucky).
Be sure to check your understanding of the city plan with a licenced surveyor before you commit. Once you have an idea of what can be done on the land, you'll be in a better position to answer your other questions.
Financing it will be the key in the current anti new developer climate.
We are finding it harder for our experienced developer clients to secure the same funding we did 6 months ago unless they have a good asset base, cash or pre-sales.
Richard Taylor | Australia's leading private lender
Be careful
when demolishing fibro houses.
Get houses' fibro sheet cladding tested for asbestos as if it is asbestos you will have to employ an asbestos removal company to dispose and remove the asbestos due to the health risk.duckster wrote:Be careful
when demolishing fibro houses.
Get houses' fibro sheet cladding tested for asbestos as if it is asbestos you will have to employ an asbestos removal company to dispose and remove the asbestos due to the health risk.These demolishers are licensed to undertake demolition of asbestos – be wary of contractors who are licensed (there may also be implications on you down the track if anyone becomes ill in the distant future and they can pinpoint it to having worked on your land).
Hello there,
Your situation and proposal is exactly what I deal with on a daily basis, and one that I am able to assist you with. I am a qualified Town Planner with a consultancy based in Hornsby.
Part of my professional services includes assisting property owners with identifying the development potential for a site with regard to the planning controls of the local Council, in your case, the minimum lot sizes, capacity of dwellings, required number of parking spaces, ratio of landscaped open space to built surfaces, etc.
I can also assist you with the preparation of the required documentation and submission of a development application with Council. Basically, I can assist you from development concept through to development consent.
I invite you to visit my website at http://www.edwardsplanning.com.au for more information. Please do not hesitate to contact me should you wish to discuss your proposal further.
Kind regards,
Michael Edwards
Principal Town Planner
Edwards Planning
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