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Subdividing for a profit

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Your Investment Property | 20 Jun 2012, 12:00 AM Agree 0
The basic premise of subdividing land with an existing dwelling is simple: two is better than one. But how can investors use these projects to turn big profits?
  • Rebecca | 25 Nov 2012, 03:47 PM Agree 0
    Is there an industry group or recommended place to find a good consulting surveyor (I'm looking in SE Queensland).
  • stefan | 05 Nov 2013, 07:38 AM Agree 0
    Ihave an acre at the bottom of my property,and was wondering if I can just subdivide it,and have it all on paper as a separate block,with no water and power etc,and just put it on the market to a developer?
  • theplanningplace | 24 Jan 2014, 03:54 PM Agree 0
    The Planning Place - Subdivisions Brisbane
    There is no doubt that when great minds are put together to formulate a response to an issue they can achieve anything.
  • john | 26 Jan 2014, 07:53 PM Agree 0
    i have 6 acre land i like to subdivided for 40 site full hokup for rv i want to know how much cost to put drain water and hydro cable under ground thank u
  • Brian Matthews - Axis Town Planning | 24 Apr 2014, 06:55 PM Agree 0
    There is some very realistic and practical advice in this article. I can't tell you how many times I have had to save a new property developer from their "subdivide for profit" purchase. Please speak with a professional town planner before you buy. For those looking for help for Subdivision Brisbane we can certainly assit.
    • Vk | 05 Feb 2015, 09:40 PM Agree 0
      Hi,
      Can you please send me your contact details to vinuskf@gmail.com.iam planning to split a property in Brisbane.
      Thanks,
      Rao
  • Anny | 22 May 2014, 01:06 AM Agree 0
    We live in a house on an 800 square meters land ( two corner house). We would like to know if we could divide the land by half which will be about 400m2 each as we want to sale the unused land and still be able to live in the the current house. We are not sure if it will work that way and how much would it cost all together till we can sell the land? Who can we find to help us and where to go for further assist and information? SE, QLD
    • Alan | 26 Dec 2014, 02:05 AM Agree 0
      Each council has their own rules and regulations, in relation to size of developments. In Forest Lake, they allowed 3 units, tri-plex on a 660m2 land. Brisbane council allowed 4 units on an 800 m2 land. (Very tight and it had to allow for turning and parking (but it can be done). Approach your local council, look at their website. When speaking to council officers always write down their name and time you called for your records. Some areas in Brisbane may require street scape reports (new housing to look like existing in the area). Many people have had their dreams dashed by not doing their homework first, then wonder why 2 years later it still has not passed through council.
  • Janelle | 11 Jun 2014, 08:41 AM Agree 0
    I live in moreton bay council and am hoping to remove my house from an 800sq m block which is already sub divided and sell off 1 block to build myself a new home on the other, Where do I start
  • Alan | 26 Dec 2014, 02:00 AM Agree 0
    I have found a lot of people selling lots for sub-division to be a lot overpriced when you take the cost of existing land for sale, and the costs for development, roads, contribution fees, and DA fees etc.
    One example is up the Central Coast of NSW. The land is 10,000 m2, could only accommodate about 15 lots but are asking the equivilant of $266,000 per lot (wholesale). As the current market rate is around $200,000 once you add on subdivision costs and council fees it pushes it way over retail prices.

    In New South Wales, I know of a builder and one of the people there knows about Granny Flats and sub division. Their business is called My Flats and I am happy to recommend them for advice.

    When it comes to selling a block of land that can be subdivided, the thing is to be realistic with sales costs of land:
    What is the current market rate for land in the area?
    What is a 4 bedroom house within 5 years old worth on the market place selling for?
    Once you work out those figures, then take the cost of development and council into consideration and then you can ask a realistic figure for each piece of land.
    Many people expect too much for their land and wonders why after months why they have not received a sale.

    One piece of advice would be to make a joint venture, find an expert in the field in relation to land development, a designer to design a range of homes, a real estate agent to sell off the plan. And an investor who can help fund the process in the early stages and expect a decent return(unless you can get equity finance to do it yourself) , which might cost you a bit more, but help you with the costs to get it through council, and then sell off the plan and get finance approval from purchases which can help fund the rest of the development costs.
  • Alan | 26 Dec 2014, 02:15 AM Agree 0
    An easy Solution in New South Wales, using SEPP, you can construct a 2 bedroom 60m2 (apartment sized) dwelling in your backyard to increase your rental yields, all with 10 day Council Approval (State Government Legislation). This is a great way to create a "Positive Geared" income and property portfolio. Most real estate agents advise for each property to have it's own exit and entry point, which can be easlity acheived with a fence from the front of the house to the side of the house, with a gate.
    Corner blocks are very easy for this scenario. Minimum requirement is the land to be 450m2 unless the granny flat is attached to the existing dwelling.
    Be careful though, some council have problems with down sloping blocks and charged lines (if the top of the water tank on the granny flat is lower then the street level) unless the dwelling is attached.
    With real estate increasing steadily in NSW yields are dropping, and you will need some way to increase your rental income to offset new property purchases which makes renting very negative.
  • howard | 14 May 2015, 05:45 PM Agree 0
    Yes, you can contact to real estate agents, as they will provide you with better offers and guidance.
  • Carolyn | 02 Jun 2015, 10:09 AM Agree 0
    Hi, thanks for all the information you have provided. We have 34 acres in Yarragon Victoria. Their are a few subdivisions happening here already. The title says Residential but after contacting the council they said its residential lifestyle. The council want to put a retardation basin on our property. I'm not sure how many acres they want. We have been told that when the council fix the drainage issue then we can subdivide. Who do I go to for advice? Thank you in advance 😊
  • Carolyn | 02 Jun 2015, 10:12 AM Agree 0
    Hi, thanks for all the information you have provided. We have 34 acres in Yarragon Victoria. Their are a few subdivisions happening here already. The title says Residential but after contacting the council they said its residential lifestyle. The council want to put a retardation basin on our property. I'm not sure how many acres they want. We have been told that when the council fix the drainage issue then we can subdivide. Who do I go to for advice? Thank you in advance 😊
  • #planningpermit | 14 Jun 2015, 09:13 AM Agree 0
    The new residential zones in Victoria generally allow subdivision subject to the meeting the minimum lot size specified in the Schedule to the zone. You should study planning overlays burdening the site and the title should be free of any restrictive agreements or covenants.
    Inner city or close to inner city lot sizes can be as low as less than 100 sqm per lot while the middle ring ranges around 300sqm per lot and the lot sizes increase in the outer ring suburbs of greater Melbourne.
  • auarchitecture | 16 Aug 2015, 01:49 PM Agree 0
    You need a planning professional with real design experience to take you to your goal. And better still if that person has done subdivisions using their own money. That way they know how to be wise with other peopler's money
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