Hi everyone,
I’ve been a property investor for many years using the buy and hold strategy, but am now looking into demolishing my family home, subdividing and constructing 3 villas for a profit. As this form of investing is completely new to me, I was curious to know how long I can expect the process to take, and how difficult councils can be to deal with, specifically Onkaparinga Council.
Our family home is on a large corner block in Morphett Vale (864sqm), I’ve done a small amount of research already and councils’ minimum block size is 250sqm with 9m street frontage so there’s no problem there, and an almost identical block on my street was developed into 3 villas just down the road a year or two ago. I’ve obtained sale prices from the agent that sold those, and consulted a surveyor as to the rough cost of subdividing.
So far it definitely seems like a worthwhile endeavour, and the fact that throughout the DA process we’ll still be living in the property, that should mitigate some holding costs. I also invest with a developer who has said when the time comes (if I go ahead it’s going to be a couple years down the track) he’ll do a feasibility test for me free of charge, but I don’t think he’s developed in this council area before, and I’m sure they’re all different to deal with.
Even though this potential project is a couple years away, I’m a planner and always thinking about my next move, so any info I can get my hands on is much appreciated.
Thanks in advance
PeteQuite a simple process – be careful to work on your end vals on those sub 300sqm blocks, the market doesn’t take to them as nicely. Sometimes a smaller 2 splitter will result in a higher return on investment as the block size will be above norm at 400sqm+ for a new build and your construction will be cheaper per sqm due to less narrow width requirements.
End of to end you can get it off the ground in 6 months after dealing with council, demo and getting infrastrucure together. From there another 6 months will generally see your constructions completed + all ancillary works finished off.
Just remember that just because Onkaparinga council allows it now, councils do change their rules frequently. There’s been quite a few cases where people have planned to development in x years, only to have the council up the minimum requirements leaving them with a property which can’t be developed at all.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Thanks for the info Corey, I’ll keep it in mind while I’m deciding what to do.
Pete
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