I'm new to the forum and I'm finding lots of helpful info and people. I'm currently trying to learn lots as we save hard with the intention of buying our first house this year. We're hoping to use this first house as just the first step in building an investment property empire (gotta have ambition lol). So I'm hoping to set us up well right from the start.
The plan is to buy locally and use the house as our PROR while we are living in the area. We are starting small (we have a young family), so looking at cheap houses with simple reno potential. While living in the house we will do renos to try and add value and gain equity.
The area in which we are looking to buy also has large block sizes, which I think may have the potential in the future for subdivision and development. So this is where I'm after some advice, help. We want to buy a house on a block which has this future potential (won't want to development for years) and I want to find info on what to look for in finding a block that will be suitable for further development such as putting another dwelling at the back of the block.
So any advice on what to look for, I where I can find this info would be great. Thanks!
Hello Lizzy
Place to start is the town planning dept of the council that administers the area you wish to buy into. Find out minimum development requirements etc and speak to the town planner about what the council want to see developed in the area. You could also read up a bit more on the whole dev. subject. Try Michael Yardney resource for that. Also google Rookie Developer.
For other free info try http://theblockblog.com
Hope that helps.
Couple of things to check, firstly see local council and check their land size requirements for a second dwelling, generally the land size required to build and strata title will be less than that required to subdivide. For exampl in my local council in Tassie you need 350m2 to build a second dwelling but the next door council resuires 375m2 so this does vary from council to council. Also check with them what the land zoning for the property is – for exampl a property maybe zonned rural residential which would prevent development as oppose to a high denisty residential zonning.
Also while researching a particular property ask the agent to see a copy of the property title and schedule of easements – make sure there is nothing there to prevent development. For example you may find a house that has a large block that fits coucnils land size requirements but if there is a drainage easment through the backyard it may impact your usable land.
Hi Lizard,
If you are not looking to develop for a while there is a great opportunity to land bank. Despite all of the fancy stuff which can be done with design loop holes in town planning schemes. I recommend to most people to understand the basics of a limited number of councils that are pro development in suburbs of high demand and low supply (capital appreciate areas). Look to the local council for aforementioned future density increases. The more recent the plans of a density increase, the fewer people who know about it and consequently the properties are often undervalued. Always remember, council changes are slow and can take any time up to 5+ years (depending on the stage). The newer the plans the more likely they will be revised. As long as you’re weary of the above, I have seen a lot of people make money out of land banking for future density increases.
You definitely need to check with council as to what their planning guidelines are. A big block may or may not be worth a lot depending on where it is. 1000m2 of land on a city fringe suburb may not be developable, however an identical sized block of land in an inner suburb might be able to be split into 4-5 unit sites.
Where is the block of land you are looking at located??
Cheers,
LukeThanks for the info, it has been helpful. Will be looking into the council planning.
The area in which we are looking to buy is in a regional city.
Lizard wrote:Thanks for the info, it has been helpful. Will be looking into the council planning.The area in which we are looking to buy is in a regional city.
are you based in VIC? if so, i might be able to help you, ‘cos i used to work at a regional local council as a town planner….
Given the recent flood and bushfire, remember to check with the council if the allotment you are investing are within these zones. Good luck!
Land subdivision is a bit like helping Mom slice up her beautiful Apple Pie; it's all so easy, when, like Mom, you've done it a few times. So let's see if we can get the ingredients for a land subdivision correct so you can do it right first time, OK? Every city or town in the free world has a Town Plan and it comprises, not surprisingly, of plans or maps, usually with lots of different colors all over them, but also lots of words explaining what the colors mean as well as lots of Rules that tell you what you can do with land. The colors indicate different zonings that your elected Council has decided upon. So say, Residential housing may be Yellow; high density housing like units, condos may be Pink; and industrial Orange, whatever. So you can see at a glance how the town plan is subdivided into land use categories. Just as you can't build a house anywhere you like, you can't have a farm or a factory in the middle of a residential area either. So the first thing you must do is find out what is the 'Zoning' of the land you own or are thinking of buying. Getting land Rezoned is another issue altogether. Let's assume your land is zoned for residential housing. The Town Plan will tell you all the requirements you have to undertake for land subdivision. It will tell you the minimum Lot size allowed in a residential subdivision. It will tell you the distance in feet or metres you have to Set-Back each lot from the road, either internal and/or external, as well as the side boundaries of your land. Now all that seems a bit complicated, but don't worry, there are professional land subdivision experts who will do all this work for you. Depending in what part of the world you come from, you will engage either an Engineer in the USA or a Land Surveyor in Australia, New Zealand, UK or Ireland to prepare you land subdivision plan. Always engage one who does their main work in your area, because these are the professional where local knowledge is very important. They will know about soil conditions in your area, because they may have done several land subdivisions in the area already and completed soil testing. They will also know about the provision of utilities like water supply, electricity, gas, telephone. All of these impact on the cost of your development. For example, if water reticulation is not available on your road frontage and the nearest water supply is a mile away, then you may have to pay for the cost of piping water that distance. It is vital you know this information before you commit yourself to land subdivision costs and so the Engineer or Land Surveyor are very important not only at your investigation stage, but also when you proceed with the land subdivision planning application preparation and lodgment with your Local Authority. These guys will do all that work for you. So what does all that add up to? Yes, you should go the Local Authority in your area of the world that handles Town Planning and study their Town Plan. You may even be able to get a photo copy of that area of the plan that concerns your land. Read the local By-Laws about the type of land subdivision you plan to do. <moderator: delete adveritisng> Do they 'talk down' to you and treat you as though you're a mug? Are they information givers? Do they explain things to you? What land subdivision are they currently working on? Where is their most recently completed land subdivision? You don't have the expertise in the profession, so use you own instincts. When you find one that suits you, Do Not start off your relationship, by attempting to haggle over the professional fees he proposed to charge you. If you have interviewed several professional you will know the range of fees charged, BUT you do not know the extent or range of work the firm has to carry out. Best, Jason
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