Hello, I am looking to subdivide our IP and sell the backyard! I have come accross backyard buying property companies that take care of the lot! Has anyone had experiences with any type of backyard buying company or simply done it themselves. If so what is the best way to subdivide the backyard??
Hi Minidaz1
Haven't heard of backyard buying companies, but it always worth following through with a turnkey operation like that to, at the very least, get a summary of costs. This may help you compare to the costs you would incur if you were to go it alone. You can also assess whether the fee they charge is worth paying for your time if you were to do it. ( which I doubt )
A land surveyor will do the job for you from start to finish and be able to give you a full costing of local council fees and his fee.
Ian
http://theblockblog.com
Free Property Investment Information, Tools & Resources for Investors with a Sense of Humour.I don't have any personal experience with these types of companies, but as Ian said it is worth getting some information to compare costs. These types of companies will need to make a profit of course, you just want to make sure its a fair deal for you!
Also it is worth noting that depending on the size of your property and the area it may not be as simple as just doing a subdivision. In Victoria at least Council's generally require development plans if the new lot is less than 400-500sqm (varies between councils).
Hand the sub division to a local surveryer…you could expect a cost of between $2-3,000 and takes about a month.
I would definately be careful with one of these companies. You may be losing out on the sale of your land.
A few things you should check:
– Talk with your lender as they may need to value the property WITHOUT the backyard. You may be then forced to pay down some equity.
– Work out yourself what you think the backyard will go for…speak to a real estate agent in the area and find out if it is worth doing
– As Colin said it may be worth getting the help of a local surveyor…ask around and find out who can help you apart from one of those companies.You then have more options with what to do with your backyard….you could sell it, build on it, build a granny flat, build a block of flats, keep it etc.
Ryan McLean
CashFlow Investorps. You may find this blog post useful 7 Reasons You MUST Consider Investing In CashFlow Positive Property
Ryan McLean | On Property
http://onproperty.com.au
Email MeHi Minidaz1,
As the others in the thread have suggested it is worth talking to a land surveyor to get the process going. Firstly however I would suggest checking the land.vic.gov site and seeing what zoning your property is in, and if there are any regulations that may affect you.
From here you can get the surveys undertaken to apply for your permits and get the process underway.
If you like I can send you some information in a excel spreadsheet that has step-by-step the entire subdivision process
Cheers,
Ashley StaceyHi Minidaz1,
As ever, some great advice above.
Subdividing is not difficult, but it is reasonably complex and can be time consuming.
The actual subdivision is not difficult and most surveyors can prepare the plan of subdivision and supporting documentation for you. The bigger issue, as pointed out by Malanie, is that one generally needs permission to subdivide land.
This permission is in the form of a town planning permit (TPP).
Subdivision can occur most commonly in two different ways:
- Land can be subdivided as part of a property development submission. That is to say, when a TPP application is made, for example to build a second dwelling behind an existing dwelling, then permission can be obtained at the same time to subdivide the land in accordance with the plans submitted. In this case you can either complete the project yourself or look to sell the land "with plans and permits" to someone else.
- Land can be subdivided in accordance with a Section 173 agreement. This is an agreement between the land owner and the council as to the future use of the land. Anyone who purchases the subdivided land from you will then be bound by the conditions of the agreement.
These are the two most common scenarios in R1Z land.
Hope that helps, and good luck with the project.
Its best to find an experienced town planner and consultant. Just ensure that all due diligence is made before buying the site which can include zoning, market value, flooding or water and sewer services to the site. Find out what other cost are involved when doing a subdivision.
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