All Topics / Help Needed! / Subdividing a block of land

Viewing 4 posts - 1 through 4 (of 4 total)
  • Profile photo of kmenonkmenon
    Participant
    @kmenon
    Join Date: 2014
    Post Count: 2
    February 11, 2014 - 11:11 am

    I have bought a block of land 650 Sq. mtr (corner block) in Lynbrook estate, the lot size is 19 x 34 mtrs.

    1. I would like to know can i construct on one half of this block and put the house on rent and subdivide at a later date and sell the other block of land. At this stage i do not have the equity to build 2 houses.

    2. Does it make sense to subdivide before i construct the first house or can this be done later.

    3. How much would it normally cost to subdivide.

    This is my first step in to property investment and very new to all this so look forward to all your expert advice.

    many thanks

    Profile photo of wilko1wilko1
    Participant
    @wilko1
    Join Date: 2010
    Post Count: 510
    February 11, 2014 - 5:49 pm

    Firstly.

    did you check that the block you bought. You could subdivide. Best a quick visit to the local council. 

    You could design a house plan that is very front frontage orientated. Actually best to get both houses designed at the same time so that it all fits and then just have your building designer edit out the 2nd drawing if you wanted to do it as a staged development.

    depending on what type of subdivision you do you could be up for 20-30k plus a couple k in land titles fees, planning, building drawings. 

    If you bought the block of land at a good price. Let's say for example 300k it might be worth subdividing first for 30k as each single block 300-350sqm is worth 180k hence you would of made 30k extra equity. (That was just a example you'll have to do you own due diligence) 

    Profile photo of kmenonkmenon
    Participant
    @kmenon
    Join Date: 2014
    Post Count: 2
    February 12, 2014 - 9:39 am

    Thanks Wilko1, this block of land was advertised as a site fit for subdivision. I will be contacting the council to confirm this. Please advise should I contact some volume builders for quotes at this stage or should I be contacting building designers. 

    thanks

    Profile photo of wilko1wilko1
    Participant
    @wilko1
    Join Date: 2010
    Post Count: 510
    February 12, 2014 - 10:05 am

    Advertisement doesn't always mean possibility. 

    Depends how much involvement you want in the process and if you want a complete turn key house or you want to get a smaller builder in the build both homes .

    some bigger companies can do plans and subdivision process for you. Or you can do it yourself and try to save some money and learn a few things along the way.

    It would be worth while finding out how much a complete house costs to build for that area and size etc number or beds and sqm. So that you can work out your what your home

    will cost to build and what they will be worth at the end by looking at comparable sales . You should of really done that before the purchase. It might not be even worth while subdividing.

Viewing 4 posts - 1 through 4 (of 4 total)

You must be logged in to reply to this topic. If you don't have an account, you can register here.