Hi
We've bought (in WA) a block of land with a house in on the front half. We want to subdivide into 2 lots (keep the house on the front) and build a 4×2 on the back.
Does anyone have any suggestions as to how to go about it.
Should we a) Apply for sub-division ourselves… (what is the approx cost & time frame?) and then get a builder to build, finish off etc?
or b) get a builder to do it all from the sub-division approval to building right through to landscaping?
Anyone know what the expected costs of a and b are? Which way should we go and can you recommend a builder???
Thanks
Subdivision is a straight forward process that relies on what your property is zoned and the requirements of the local government and state government whether or not you can subdivide.
Generally you should allow around 12 months from application to titles for a straight forward subdivision. Costs vary depending on the site, there are costs that apply to all subdivisions such as application and government fees, surveying, power, water and sewer connections, construction of vehicle access and site works.
Some builders will take you through both subdivision and building processes but most like to only focus on the building side of things.
If you would like more information specific to your property you can email me.
Ryan
[email protected]@ Ryan – Thanks for your input. I am also looking to buy a property to subdivide. Knowing that it will take around 12 months to achieve subdivision might change my mind about going ahead with the subdivision. Why does it take so long?
What if you want to subdivide and then sell off the land? Do you still have to pay for water/sewage connection and stuff like that? Or is that only if you want to build on the site?
Generally speaking do you know the minimum land size for subdivisions on rural centres?
Ryan McLean
http://CashFlowInvestor.com.au
Positive Cash Flow Properties Are Just A Click AwayRyan McLean | On Property
http://onproperty.com.au
Email MeYou might be able to reduce that timeframe by a few months, but I like to play it safe and not risk your investment unnecessarily, so I always build in a contingency timeframe to allow for any delays and if it happens earlier – bonus!
The reason it takes so long is due to the number of government agencies involved and the sequential nature of the steps. Generally speaking, it takes on average three months to obtain a conditional approval, another 6 months to satisfy the conditions that are imposed and another 3 months to obtain titles once you have satisfied conditions. It is the satisfaction of conditions that can make it short and sweet or long and painful. This is where experience pays to know what conditions are appropriate and how they can best be satisfied. I have seen many developing owners fall over big time because they underestimate the importance of this part of the process.
To get a title (the rights to specific land and the thing you need to sell) you need to provide all services – water/sewer and power are standard on every subdivision, there might be other requirements such as constructing access leg, geotechnical reports, retaining and earthworks, demolition, contributions towards common infrastructure arrangements and/or public open space and other aspects that come up depending on your location. Ie – it must be ready to build for either you or a new owner.
Lot sizes all depend on what the local government stipulates in their planning scheme – different for every Council. If you want help on a specific property you may email me [email protected]
Cheers
RyanHi Ryan,
It's taken me a bit of time to get back on the forum here… but thank you for your advice.We actually pulled out of the deal as we were still in the conditional stages. It was perfect for sub-dividing, it had the correct zoning, size etc and the precedence (not that it would be required) was just about every other lot in the street!)
We pulled out as when doing further due diligence, the figures ie profit, didn't come out right.
I'd like to contact you perhaps on a more specific property (when we find the right one) if that's alright by you? What state are you based in?
Thanks
KarenHi Karen, shame it didn’t work out, but yes certainly you can contact me – I’m in WA.
I appreciate this discussion. Thanks for the posts guys. I see too many investors getting into situations such as a possible subdividision that they assume is going to be easy and profitable. However, often times something doesn't work out the way they expected it too (a lot of times I'm the thing that didn't work out. Ooops! I just call it how I see it). But I am glad for you karen that you were able to recognize the lack of upside potential in this deal. Good work.
Tom Siegel
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