All Topics / Help Needed! / Development on <600sqm
Looking to do a development – or get approval for one within the next year or so.
Looking to subdivide and build 3 X 2BR townhouses in Frankston, on a 591 sqm block. Now i know if it were closer to the city it wouldnt be a problem, but does anyone have an experience with doing something like this. And its not a corner block.
Block is approx 15 x 38, with an existing house that will be demolished.
Does anyone have any suggestions/ideas for going about it.. eg finance? whether it can be done (thoughts) ?
any suggesstions and advice are much appreciated!
Hi WealthyJVD,
Sounds like you really need to study up and there are some great resources for this. Probably the first step is Frankston Council website and check out all the info on property development requirements and fees. (600m2 site may be too small for 3) A quick phone call to council once you have studied their site and ask anything you couldnt find out.
You could look at my site (below) for a whole host of resources or http://www.rookiedeveloper.com or http://www.realestatedevelopmentcoach.com/?hop=goodcho1ce. You should 'google' property development then add frankston to the search.
Good LuckIan
http://www.theblockblog.com
Free Property Investment Info, Tools & Resources for Investors with a Sense of Humour.Definitley speak to the local council, you will find that most Councils will have a minimum subdividable size. it maybe 300 sqm or 250 sqm or something else.
If your block doesn't meet the minimum size you may still be able to apply for approval as an 'exception' however you may also need to engage a Town Planner and/or Architect (who may have Town Planner in their office) to submitt application to Council etc.
Assuming you may wish to build double story you will also need to deal with shadow overlays and privacy issues with the neighbours etc (overlooking their back yards or into their house etc) hence a good architect and/or town planner maybe required
I don't want to pu you off but If the neighbours object it could become a long & expensive process, I seen situations were costs have exceeded $20k to obtain planning approval etc which will reduce your profit
Hi WealthyJVD,
I’m a Town Planner who has worked with Frankston Council on previous multi-unit developments. They are generally supportive of new development if you approach them early and consult regularly with them.
Engage a good planner or architect early in the process and assess the site on it’s specific merits.A thorough site analysis and neighbourhood description will demonstrate to Council that you’ve addressed several of the common concerns that can develop into objections from your neighbours.
For a site like that, some matters that you will need to address through appropriate design include:
– Visual bulk,
– Overlooking,
– Setbacks,
– Over shadowing,
– Neighborhood character,
– Provision of car parking, and
– Walls on boundaries.If you address these common concerns at the start of the process, and design to your site opportunities and constraints, you generally get a smooth ride through the Town Planning Process.
Of course, there can never be any 100% guarantees in life, and the same goes for town planning. Planner’s value to the client comes through mitigating concerns and minimising your risk.
All the best with your development,
Cheers,
BreeceThanks so much for your help guys!! I’ll definitely be engaging with a town planner/council soon.
And I’ll definitely get on those websites!
…..And I thought 3 on 600sqm would be a task
Check this out, 7 on 880sqm!
http://www.realestate.com.au/property-residential+land-vic-glenroy-2824833
Glenroy is certainly an interesting area at the moment. We’ve been personally looking for the right property in the Pascoe Vale, Oak Park and Glenroy corridor for several months. It’s definitely an area that appears to be realising it’s potential at the moment.
These properties below tell the story of the potential for growth in this corridor including:
http://www.domain.com.au/Property/For-Sale/House/VIC/Glenroy/?adid=2009004427
http://www.domain.com.au/Property/For-Sale/House/VIC/Glenroy/?adid=2008884539
http://www.domain.com.au/Property/For-Sale/House/VIC/Pascoe-Vale/?adid=2009000807Notice the three different types of opportunity for development,
1. Permits approved,
2. Renovate and Subdivide, and
3. Demolish and Develop. The third property in particular in Bolingbroke Street, Pascoe Vale would be an excellent development site for several townhouses.I’m currently working on a development with a draftsman named Phil Ferrotto for 8 two bedroom townhouses with basement parking in Melbourne Avenue, Glenroy. The site has a site specific Heritage Overlay and additional site constraints that added a layer of complexity to our design response. The site is interesting as it is approx 24m x 77m deep! Through the requirement to maintain the existing facade and front fence, we have maintained a front setback of 25m. Each townhouse is provided with more than the minimum required Private Open Space as well as the retention of a common open space garden of more than 250m2 on the western boundary. The way Phil has designed these townhouses has minimised the impact on the existing streets cape, as well as the adjoining properties.
Through a combination of creative design, good planning, and early engagement with Council planning officers, we look likely to gain Council support.A quick plug if I may.. Phil Ferrotto Is one of the best Architectural draftsmen I’ve ever worked with. We’re currently working on several jobs together that include the Melbourne Ave units, a dual occupancy, 14 apartments in Brunswick, a medium density retirement development, a five storey mixed retail & residential development on Sydney Rd, a 4 townhouse development in Pascoe Vale and several others at concept plan stage.
As I mentioned in my earlier post, Phil is a good example of someone who works closely with Council, the developer and his Town Planner to conduct a thorough Site Analysis and review of the site opportunities and constraints. Sometimes three well designed townhouses can create a better design response than four smaller units on a block.
An example of some of his work can be found here http://bit.ly/itzjfpGood luck everyone!
Breece
Thanks very much for your input Breece,
Im only 21 and studying, but saving hard to get plans and permits, then the actual construction..
Do you know much about financing a development. I have done the feasability and it reurns 20%+ @ $200,000+ profit.
Is it 20% deposit of the overal construction cost? Is that what is required?
No worries mate.
When it comes to finance, there are many people here who will give you honest answers and support.
I’m sure someone will respond shortly with the right advice for you.All the best,
Breecewealthyjvd wrote:Looking to do a development – or get approval for one within the next year or so.Looking to subdivide and build 3 X 2BR townhouses in Frankston, on a 591 sqm block. Now i know if it were closer to the city it wouldnt be a problem, but does anyone have an experience with doing something like this. And its not a corner block.
Block is approx 15 x 38, with an existing house that will be demolished.
Does anyone have any suggestions/ideas for going about it.. eg finance? whether it can be done (thoughts) ?
any suggesstions and advice are much appreciated!
Hi wealthyjvd,
I don’t have any help to offer you but I have an 900 sqm block in Frankston which like yours is not on a corner block. The broker I use mentioned it to one of his colleagues who felt that Frankston was the wrong place for new developments and so i was put off the idea. I have rung the council who said they were very open for any new developments in the area, so I’d be interested to see how you get on.Thanks Landt.
Thanks. Well it won’t be for about a year before I hopefully start building. But I want to get plans done soonish
Hi Guys / Girls,
Im new here and was googling forums on property investing / subdivision etc and found this and have read through for a couple of days and it seems quite active with new posts etc. I thaught id comment here to give you guys some recent feedback from Frankston council. They are quite fussy and not the easiest to deal with in my experience but in saying that all the applications ive ever lodged have been approved without too much hassle. Some planners tend to take a personal opinion on projects which is never good as they get a bit shirty when you point out the floors in there logic. Development close to the CBD is being encouraged and a better quality of housing stock (IE more people on a block) is what they would like to see but in saying that all the amenity (parking, POS, etc) needs to be suitable or else they wont approve it.In Regards to the stated block of 591sqm it seems reasonable. Just need to look into easements, overlays, etc etc. Please be aware also that when you lodge a multi residential development it needs a RESCODE (Clause 55) survey to AHD and this should cost between $200-$2600 with a re-establishment survey included. A small site like this shouldn’t be too much hassle. Thanks for listening and hope this has helped in some small way. Look forward to participating in the forums more regularly.
Cheers, Simon
Thank you kindly for the advice Simon!
I have been hearing generally good things with re: to the Frankston council and very few hiccups that i guess is apparent in all councils which is good to hear. The property itself is no more than 1.5 km from the CBD, and an extra 500m from the beach. Its central Frankston, so its relatively close to everything.
Could you please provide more detail about the CLAUSE 55, and AHD.. I will be getting a town planner to do all of the work so im assuming they will know what that is, right?
Ive been looking around, and albeit in different arears i have seen 900sqm blocks with 8, 700sqm with 5. So i dont think 591sqm will be a problem for 3.. Just need to get in touch with the right planner and designer.
Thanks again!
wealthyjvd wrote:Thank you kindly for the advice Simon!I have been hearing generally good things with re: to the Frankston council and very few hiccups that i guess is apparent in all councils which is good to hear.
I may have to play devils advocate and say that my experience (have completed 2 town planning applications with Frankston Council in the last 12 months) hasn't been overly great. The time taken to approve the permit seemed way too long for the relatively simple developments that i was proposing.
Also, when i obtained the permits, there were conditions on one asking that I move the propesed new dwelling closer to the fence line, which i found totally ridiculous. I ended up dealing with the head of the town planning department and he admitted to me that the conditions placed on the permit were incorrect.
My advice, get as much info from council and town planners as you can regarding the development, because if you go in under prepared the time/budget blow out can ruin the final outcome
If you have any other questions happy to discuss
Good luckHi WealthyJVD and Blair,
Clause 55 forms part of the planning assessment that needs to be completed on developments of two or more dwellings on a lot, or residential buildings (eg. Block of low-rise flats).
Clause 55 gives both your draftsman and town planner the criteria with which we design your townhouses, and includes such things as side and rear setbacks, building heights, site coverage and open space, parking, solar access, overshadowing and overlooking, provision of services and controls that ensure the good amenity of your proposed development.
AHD is the acronym for Australian Height Datum which is provided by your surveyor when they complete your site survey. You don’t need to worry about this too much as your Draftsman, Town Planner and Surveyor utilise this information to prepare your design and relevant plans and reports.
Your Town Planner will be able to address all the relevant planning controls that impact your site. In your case, you have both State and Local Planning Policies that include the Frankston Neighbourhood Character Policy that provides direction on the neighbourhood character that Council seek in your area. Your Town Planner will need to assess your development against the objectives of your Neighbourhood Character precinct, in addition to the other planning policies that relate to your site.
If you’d like to drop me a line with the property address, I’m happy to provide you further information on what controls apply to your site, and what potential the site has for development. A site of 591m2 could potentially fit 3 townhouses if we respond appropriately to the site conditions.
Blair,
as you’ve no doubt learnt through the process, you can appeal against Conditions on your Permit if you are not satisfied with the outcome. We attend VCAT regularly to represent developers who find themselves in your situation. In many cases, VCAT mediation leads to a better outcome for all parties.If you have any questions, feel free to give me a call or email on 0438 026 077 or [email protected].
All the best,
BreeceHi wealthyjvd –
I too am young (22) and have also purcahsed in Frankston, Queen St which sounds like it's in a similar location to your property. I have also commenced a subdivision with intention to build in the back yard (not a corner block), my block is smaller than yours – I'm doing a 3 bed, 2 bath townhouse. I started this process back in early 2010 however because I didnt know anything about subdividing I engaged a subdivision company to carry it out for me who specialise in Frankston and the Mornington Peninsula. They have been exceptional to work with, the director having an immense amount of knowledge for the area. He has just had approved the first high rise in Frankston, Davey St – this particular project took 3 years to get through with the concept of high rises in frankston taking 7 years. Let me warn you now – THEY ARE EXTREMELY SLOW. They have made a numerous errors with my application eg. It took them 8 months to tell me that my proposed development was on council land due to a rear laneway running through the back of the blocks on my street. It then took about 4 months for them to approve me purchasing the laneway and now another 3 months still to date for them to transfer it into my name.
If I can revert back to the director of the company I engaged, his words 'they are as slow as you can get'. I'm by no means trying to put you off in the slightest, I'm giving you a real scenario. I now have them on my side after an extremely long pointless delay of time and have been ensure that the application will be 'fast tracked' – I have to lodge it AGAIN. I'm hoping I will have commenced building by the end of the year – best case scenario.
As a suburb, I love Frankston, I have had great growth already and will eventually see awesome profits. Would I do it again there? Yes, especially with everything happening down there. I have to think though, can I get the same returns elsewhere in a shorter period…
If you want to have a chat, I'd be more than happy to – PM me.
Best of Luck mate – great to see other people doing it down there!!
Sash.
Want It. Own It. Enjoy It. Achieve It.
Hey Sash,
I know queen street, great location! My IP is in Kareela Rd, not too far actually… I hope to demolish what is there and get plans and permits for 3 x 2 bedders
Thanks for the advice about the council! Love to hear honesty! Im not sure whether im going to get the plans and sell with plans and permits, (as im 21 and my income might not be able to finance a construction loan.. Well i dont think its the financing of the loan that will be the problem, i think its comming up with the 20%) OR get the plans and permits now, sit on it for a year or so, then build..
How did you go about getting finance?
Wealthjvd —
I got a standard 90% loan, had the deposit, stamps and subdivision fee's in cash for initial purchase and then when it comes time to build, worst case scenario I'll draw down on equity (10% for construction) however I think there's a few tricks of the trade that will allow me not to use any of my own money.
If you want to meet up and have a general chat, more than happy to. It's hard to come across like minded people – especially in our age group.
Happy Hunting.
Sash.
wealthyjvd wrote:Thank you kindly for the advice Simon!I have been hearing generally good things with re: to the Frankston council and very few hiccups that i guess is apparent in all councils which is good to hear. The property itself is no more than 1.5 km from the CBD, and an extra 500m from the beach. Its central Frankston, so its relatively close to everything.
Could you please provide more detail about the CLAUSE 55, and AHD.. I will be getting a town planner to do all of the work so im assuming they will know what that is, right?
Ive been looking around, and albeit in different arears i have seen 900sqm blocks with 8, 700sqm with 5. So i dont think 591sqm will be a problem for 3.. Just need to get in touch with the right planner and designer.
Thanks again!
Clause 55 is planning guide for multi residential developement. Ive lodged about 15 applications with Frankston in the last year and to be honets a town planner is an expensive exercise for such a small project, as i draftsperson i handle all my clients application within the design fee ( i think most drafting servioces do this also from everyone i know in the industry). I dont wish to contradict anyone here or tell you what to do but if a draftsperson cant handle your small application without the help of a town planner youve spoken to the wrong guy. Town planners are usually used more so for developements pushing the envelope and larger context developemnt. They are also usefull for VCAT hearings should it come to this. My advice would be to get a good quality local draftsperson to do the work ( alot of people of for city based companys) not always the best idea as developement in the city is denser and usually they will tell you you can fit on more than you really can without a lot of hassle. Eitherway i hope this helps a little as i dont want to tread on anyones toes with contradicting info, but i do have alot of experoence with Frankston council due to living in the area. All up a set of town planning drawings for 3 small units may cost $3000 as an approx value.
The best thing you can do is get a full break down of what will be needed with the application. Usually alojng the lines of:
MSS response
SPP response
LPPF Response
Design Response
Clause 55 Response
TP Drawings @ A1$3000ish
Rescode Survey to AHD $2000+
Arborist report (if neccesary) $600ish?
App Form and fees $770there may be a few other bits and pieces but thats most of it unless youre in floor prone or WMO or DDO or something else special. Hard to say without looking at specofoc job.
Again hope this rambling helps
So Shaw4, essentially your saying that for a 3 unit development site that it is a waste of time getting a town planner.
I know others that have got TP for sites where they are only developing 2 townhouses.
Are you familiar with Frankston Council? And what are your services that you could provide in order to draft up, and get approval for 3 townhouses ?
Thanks..
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