Hi,
I have my eye on a corner block 1768m2. I think it could be divided into 5 with 4 of the blocks having direct street access and one behind one of the other blocks with a longish driveway opening onto the street. There is a house that needs to be demolished. I have a quote for the demoliton and clearing of the block. I am not sure how to work out the costs of subdivision. In addition there would be holding costs on the money borrowed to do all this. How long should I allow from purchasing the block to being able to sell the lots? Can you make a profit this way? On the forum most people seem to want to build on the lots they create and then sell the completed property.
Thanks for any help you can give
CathyHi Cathy,
I do think there can be profit in what you are proposing. I couldn't say how long it would take. Getting it through council would be the hardest and the longest part though IMO.
I have been told that it is about $20K per block to subdivde but that is in my council, I'm pretty sure every council differs.
Just one other thing – sometimes a battleaxe block (like the one you are describing that only has road access via a small strip of land) are not as popular than the others and this may need to be reflected in the price. Getting services to this block can also be more costly for the purchasers.
Another thing to think of which is often overlooked is fencing. Will you be providing fencing or leave it up to the purchasers?
Good luck!
Hi Cathy,
you really need to talk to the Council to work out how long sub-diving would take, how much it would cost and if 4 or 5 blocks is even feasible. Every council has different requirements in terms of minimum block size, how much of a block has to be put aside for the driveway (for your battle axe block) and any other requirements they have when considering a sub-division. Ideally, you should talk to a townplanner before even putting in an offer. You will be suprised how many issues the Council will raise, and they will all affect your feasibility of this project. It could be very profitable, but you have to get all the facts first.
Thankyou MosicLandscapes and Sandra for your advice. I’ll give the council a ring.
Cathy
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