I own a house close to Subiaco in Perth that is zoned R60. I am looking at some options. One is to put two townhouses at the back (it has a sealed ROW) and subdivide. The lot sizes would be about 210 and 220 m2 in addition to shared front access pathways. I would keep the front house which has about 450m2 as my ppor. Alternatively I could just sell the rear and let someone else do the development.
In the latter case, is it usually better to sell as 1 big lot of 440 m2 (saves about 10 m2 of shared pathways) or two small lots as above? One big lot allows the buyer the freedom to either use the total block as one lot or subdivide further to meet his own requirements. However, I assume it would mean additional expense for him if he did want to subsequently subdivide into say two blocks as I am proposing.
First thing to do is speak to council to find out what the minimum lot size per dwelling is. You might find splitting into two separate titles is not an option, and thus the decision would be made for you.
You could also build two dwellings but not subdivide…
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
It’s R60 and the council have already given the OK to subdivide.
Well ultimately, it's about what brings you the most return. Two smaller blocks tend to produce a better sale price than one large one. However, you'd need to look at sale prices of such blocks in your area and the costs of subdivision (council can guide you) and decide from there. In addition to this, you need to understand the demand in the area. No point trying to offload small blocks if nobody wants them, for instance.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Don’t forget anything over two lots is up for park land contributions in W.A when doing your feasibility analysis .Which is 10% of total land value of your entire lot in cash or land use.
“park land contributions”
That is something I haven’t heard of before and I will need to check into it. Are you sure this applies to an inner city residential block that is already zoned R60 and can be divided into 5 lots (in my case). I’m surprised no one has mentioned this before, even an expert accountant I consulted.
“park land contribution”
I can only find hits for it in relation to Queensland and then it seems only $500 per lot. I’m in WA.
Speak to your local government / shire .( Ask to speak to some one in planning about costs/ contributions ) You can go on line you might find it in the Development section( developer contributions).
I live in the shire of Cockburn W.A (spearwood) and any division over 2 has to pay 10% in land or in cash.
A friend of mine in Armadale had to pay it . I hope you don’t but I imagine you will as well.These are some of the cost’s that the real estate agents don’t factor in when pricing so called great development opportunities and that’s why the numbers never stack up on the feasibilities.Sorry I’m of on an tangent.
Call your local shire .Once again I hope you don’t have to but these extra cost are what we have to look out for .
Cheers
Grasshopper investor
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