Hi,
I’m new to property development. I want to buy a property with a large backyard then renovate it and build another T/W or villa on the backyard. Do I need to do land subdivision?
Thanks
JTHi Justin,
It depends, in the first instance, on two issues: where you want to invest, what the investment goals are.
Generally speaking, yes you will need to sub-divide, especially if you plan to sell one of the properties. This is not a particularly difficult process, but it's time consuming, requires a process to be followed, and is easy to get wrong!
Do some research and check with the local council in the proposed area.
Thnx, christianb.
Also wonder if I want to sell the property with the DA rather than do the development myself, how do we normally price it? What profit margin would the buyer be looking for in the current market? This is just a R2 (low density residential) zoned property in NSW. Do most developers look for Medium/High residential zoned properties?
JT
Justin,
If you have a DA, in my opinion, you have an improved asset.
This point should be considered a potential exit point, or at least a point at which the numbers and potential risk should be re-assessed.If you are able to sub-divide then you are talking about selling land, so check what land is for sale in the proposed area and for what price it is selling.
Christian.
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