Hi folks.
Sorry, complete novice here and wondering if I could get some very broad stroke/ball park ideas on what we might be up for if we were to consider subdividing our block.I haven’t even had a chance to work out our exact measurements, so they too are ‘ball park’……
We are in the southern bayside suburbs of Melbourne and we are on approx 650m2 land (can’t remember if it is 647 or 674??). Our current house probably takes up a good 2/3 of that land (including front garden area and small deck out back) so it would leave very approximately 220m2 available out the back to fence off for subdivision.
My first questions are :
1) is this enough land to build something on? It would most likely just be a 2 bed/1 bath unless we built double-storey but probably couldn’t afford that. But of course we would try to utilise the land as best as possible. Just wondering, in general, if that might be enough space to do ‘something’ with.
2) what sort of costs would be be looking at JUST to get the subdivision approved (an estimated price range is fine, but if you could add any comments as to why it could be at the upper end of what ever price you suggest so that we can keep this in mind).
3) Then what sort of costs would we be looking at to get the land ready for build – ie drainage, power, any other considerations.
I guess we just need to know what we might be up for WITHOUT factoring in the actual building/design costs of the building itself at this stage.
4) Is there a ‘guide’ as to what sort of return you expect on a subdivision? We would probably have to subdivide the land, sell our house on the front block to fund building the second – rent while building the back property – then sell the back house – then we would have to buy all over again for ourselves.
Of course we want to do as much homework as we possibly can before jumping in and then finding out that costs are double what we budgeted for – or along those lines.
So I am just trying to get a feel for it all to see if it is even feasible to entertain the thought of subdividing before we delve further.
Sorry to be a bit vague, but I just need to start gathering my info. We might be facing some financial difficulties in the very near future so we are starting to consider subdividing as a way to make some money. I am happy to answer any further questions if it helps to answer mine.
Thanks for any info you can throw my way – or point me in the direction if all of this has been answered over and over for newbies like me
Monty
Monty1 wrote:Hi folks.
Sorry, complete novice here and wondering if I could get some very broad stroke/ball park ideas on what we might be up for if we were to consider subdividing our block.I haven’t even had a chance to work out our exact measurements, so they too are ‘ball park’……
We are in the southern bayside suburbs of Melbourne and we are on approx 650m2 land (can’t remember if it is 647 or 674??). Our current house probably takes up a good 2/3 of that land (including front garden area and small deck out back) so it would leave very approximately 220m2 available out the back to fence off for subdivision.
My first questions are :
1) is this enough land to build something on? It would most likely just be a 2 bed/1 bath unless we built double-storey but probably couldn’t afford that. But of course we would try to utilise the land as best as possible. Just wondering, in general, if that might be enough space to do ‘something’ with.
2) what sort of costs would be be looking at JUST to get the subdivision approved (an estimated price range is fine, but if you could add any comments as to why it could be at the upper end of what ever price you suggest so that we can keep this in mind).
3) Then what sort of costs would we be looking at to get the land ready for build – ie drainage, power, any other considerations.
I guess we just need to know what we might be up for WITHOUT factoring in the actual building/design costs of the building itself at this stage.
4) Is there a ‘guide’ as to what sort of return you expect on a subdivision? We would probably have to subdivide the land, sell our house on the front block to fund building the second – rent while building the back property – then sell the back house – then we would have to buy all over again for ourselves.
Of course we want to do as much homework as we possibly can before jumping in and then finding out that costs are double what we budgeted for – or along those lines.
So I am just trying to get a feel for it all to see if it is even feasible to entertain the thought of subdividing before we delve further.
Sorry to be a bit vague, but I just need to start gathering my info. We might be facing some financial difficulties in the very near future so we are starting to consider subdividing as a way to make some money. I am happy to answer any further questions if it helps to answer mine.
Thanks for any info you can throw my way – or point me in the direction if all of this has been answered over and over for newbies like me
Monty
1. The question is what is the ALLOWABLE size and height your COUNCIL will approve?? you can build anything larger then 100 squ meters, because you can go upwards and dig under ground as well…..it just depends what your council allows? — is it a 60:40 rule? or 50:50 rule etc…. speak to the council.
2. $10,000 just for the approval process and drawing plans etc. – NSW- Hornsby council.
3. $20,000 -$40,000 if you have a flat land, good soil.
4.Depends on the area, and the total cost of your “project” – i know 2 couple who made a LOST! from the subdivision
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
I give you a general guild on what you should be doing NOW and thinking about doing later on—
Before you start: Research that DOESN’T cost a thing- only time
1. Do your basic research – would they sell? how much? and how long? how much time are you willing to dedicate to this ( get experience R. agent involved)2. Get your finance underway- you dont need to borrow yet, but you want to KNOW how much you can borrow, what the requirments are and also can you afford it ( mortgage repayment still expected ), and which lenders and what are THEIR requirements?
3. Speak to your neighbours and ask for their opinion – as they have the right to dispute when the council send the DA letter around and also you will be seeing your neighboursquite often during this development process ( You want to start off in good terms)
4. Speak to the council and town planner – The town planer will become your asset! he knows everything!
Next stage- initial cost
You have 2 choice;1. Hire and contract each job – engaging draftsperson, surveyor, engineer and builders – this will take longer and a lot of your time as you need to research on how good the company is, experience and cost.
2. Go with the top Building company – they will do all of the above from start to finish – including getting council approval — expect to pay a slightly higher prem for this “package” service and at the end of the day you are relying on this company for EVERYTHING- But at least you know what the cost is upfront.
From another client’s exp, option 1 was a headace and more costly at times; especially when the draftperson got the design wrong, costing 20-30k for the builders and engineer’s alternation.
Note: draftperson have NO idea what things cost, as they are not a builder and what ever they quote is always under value.
Finance
I can write a whole 3 pages about this topic, but ill keep it short and point out the top 6 features a bank look at before they will consider a approval.1. Size of the loan, Size of the project and time frame
2. What exp do you have? have you done this before?
3. Any securities that will be X-cross to the loan? how much cash do you have?
4. Who is the builder? are they respectable? have they done this sort of job before?Feel free to send me an email if you need help- [email protected]
Regards
MichaelMick C | Shape Home Loans
http://www.shapehomeloans.com.au/
Email Me | Phone MeSame Banks. Better Rates. Served With a Passion.
Hi Monty,
I can't help you with the costs, but I did think of a couple of other things:
1. When you are talking of subdividing a property of that size (in Melbourne) you need to start with development plans. The council will have to approve a design of the unit (and original house) before any subdivision will occur. As a rule any subdivided lot less than 300sqm will need house plans, and any lot up to around 450sqm will need at least indicative plans (i.e. plans to show that something can be built but not tied to the subdivision permit), however what councils require in the way of house plans differs with each area. Of course you can subdivide without building, but generally the development plan will be tied to the new lot.
2. I wouldn't think of this as a particularly fast process. I have had a fair bit of experience with the bayside councils and it is not unrealistic for a development permit to take at least 6 months to 18 months (if it ends up at VCAT) to go through the planning process.
3. If you can talk to the council town planners than they may be able to give you an idea of whether you have enough backyard space. I have certainly seen a unit on lots of 220sqm and below, but there are a lot of factors that can influence what can be built, such as the amount of car parking required, the size of backyards that the council wants etc.
Just some things to consider as you start the research suggested above.
Cheers,
Thank you everyone for your valuable input – I appreciate you all taking the time to give me your advice or share your experience/knowledge.
We are putting these subdivision plans on the back burner until we have dealt with some major drainage issues we are having and is taking all of our ‘head space’. Will be back to visit this ‘idea’ at some point in the near future. Until then…. thanks again for giving me some things to go on with.Monty
You must be logged in to reply to this topic. If you don't have an account, you can register here.
