All Topics / Value Adding / To Demolish or not to Demolish

Viewing 8 posts - 1 through 8 (of 8 total)
  • Profile photo of Rollo87Rollo87
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    @rollo87
    Join Date: 2011
    Post Count: 3
    September 13, 2011 - 4:17 am

    Hi,

    I’m new here, I’m looking at undertaking my first property development.

    The site I’m looking at is in Melbourne’s inner suburbs, the land size is 400m2 and there is a house on the front of the property.

    My intention is to purchase the property, subdivide and resell it with planning permits for 4 townhouses (2 per block)

    My question is, do I need to demolish the house and level the site (there’s an incline of approx 1m front to back) to interest potential buyers? Or would I be better off to simply undertake the subdivision and attain planning permission and sell the blocks as is?

    Note: the existing house would lie on only one of the blocks after subdivision.

    Any help here would be fantastic.

    Thanks in advance

    Profile photo of Mick CMick C
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    @shape
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    September 13, 2011 - 5:02 am

    Well first of all, do you know if council allows you to build 4 townhouse on a 400 m2? and is it zoned correctly ?

    Regards
    Michael

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    Profile photo of Rollo87Rollo87
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    @rollo87
    Join Date: 2011
    Post Count: 3
    September 13, 2011 - 5:16 am

    I believe they will, there is a heritage overlay on the land, however the existing house is a 1960’s build and not of heritage significance.

    There’s also 2 developments in the same street (under the same heritage overlay) that have both done the same thing, there is a ROW at the rear and they have set 2 townhouses at the front and 2 facing the rear.

    Profile photo of luke86luke86
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    @luke86
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    Post Count: 470
    September 13, 2011 - 6:05 am

    You need to check how the drainage is going to work, maybe get a draftsman/architect/surveyor/builder/hydraulics engineer to have a look. a slope from front to back is generally not good, and costs may blow out if it doesnt work well.

    Cheers,
    Luke

    Profile photo of BreeceBreece
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    @breece
    Join Date: 2011
    Post Count: 43
    September 13, 2011 - 6:42 am

    I’d be urging caution before going ahead with this one Rollo..
    A Heritage Overlay and a very small lot size (for what you propose) does not always work in your favour.
    I agree with Luke, seek advice from a range of professionals who can give you clear answers to your site specific concerns.

    Furthermore, never use precedent as your starting point. Just because something else similar has occurred in the immediate area does not warrant carte blanche support from Council.

    All the best,
    Breece

    Profile photo of christianbchristianb
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    @christianb
    Join Date: 2009
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    September 13, 2011 - 7:06 am

    Again I find myself agreeing with Breece! Bad precedents do not make good planning.

    The location would need to enjoy great amenity (close to transport, shops and public open space) and private open space and car parking will generally need to be accommodated.

    However, to your questions:

    If you intend to sell "with plans and permits" for four new dwellings, it may be best to do so with the existing house retained. This will allow the developer some income if required while pre-selling.

    We handle high density small allotments, and it's not for the feint hearted. Feasibilities need to be robust enough to soak up some disappointment at the planning table. So if you go in, my advice is to go in with plenty of margin.

    Good luck with the project.

    Profile photo of Rollo87Rollo87
    Member
    @rollo87
    Join Date: 2011
    Post Count: 3
    September 14, 2011 - 7:14 am

    Thanks for the help guys.

    The slope doesn’t concern my greatly, it’s 1m over a 40m deep site and as I said I’m not planning on actually undertaking the construction. However if i was, taking care of that height difference with a small retaining wall between properties, with sufficient drainage around the wall, doesn’t pose a huge problem in my opinion. Obviously convincing potential buyers of that is another matter.

    This precedence thing has me worried though….is this something the council are likely to give advice on before I purchase the property? Or are they generally hesitant about giving out advice outside the strict planning process?

    Thanks for the advice christian, there seems to be plenty of margin in the numbers at the moment, but obviously with a small project it doesn’t take much for that to get eaten away at.

    Thanks again for your help guys.

    Profile photo of christianbchristianb
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    @christianb
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    Post Count: 386
    September 14, 2011 - 11:06 pm

    Council will almost never refer to precedence in giving advice. In fact, we often get feedback from council that they cannot support a proposal because it will generate a precedent. So, to answer your question, yes the council (municipal planners) will give advice, but no, it will not necessarily match your intentions.

    It's my personal opinion that it is best to collaborate with municipal planners and have a project evolve. This is less confronting for council than just having a big stack of documents dumped on them and the expectation of a fight.

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