Howdy (again),
This is kind of related to my other post – but it’s a separate subject altogether.
Can someone point me to a primer on the above subject?
I have a friend who is thinking of buying 200 acres of land – but needs partners – I said I’d be interested if we can sub-divide and have separate titles – but not sure what the process is.
Ideally we could create a number of extra titles and mitigate our expenses by selling off one or two. There are already 4 houses on the title – but not really very attractive or liveable.
Any suggestions would be appreciated.
thanks again.
Strawberry
You firstly mention that your friend is looking to buy land and sub divide but requires partners? Are these financial partners or partners to purchsae the property with. If the later is the case then a Pty Ltd structure or Unit Trust maybe the way to go.
Secondly, i would not be buying any block of land where i was not fully aware of what could be done upon the block. An initial phone call to the local Council or a Town Planner will give you a better indication but remember the process is length and costly.
Not many lenders will fund englobo land so dependant on your financial position funding maybe an issue.
In land development there are many hidden costs which the average purchasers does not consider.
Unless you are both wishing to live on one of the blocks of land then i would be inclined to try and organise a Put & Call Option with the Vendor and then once you have obtained the relevant DA try and find a developer to purchase the property and you take your profit.
Richard Taylor
Residential & Commercial Finance Broker
Ph: 07 3720 1888
[email protected]Richard Taylor | Australia's leading private lender
Thanks Richard (very quick around here!),
The land package is more than he can afford – and I’ve suggested looking into sub-division to enable myself (and maybe one other to then invest, plus share the cost of the division) – so separate titles.
The land is 20 minutes out of town – so don’t believe there would be any planning issues (if that’s what you mean).
The englobo aspect is a concern – I assume that any sub-division would need to take place before looking at borrowing? Or do you think a unit trust setup initially – then subdivide and transfer title would be better?
We really want to live on the property (albeit far enough away from each other’s kids) – so the extent of any ‘development’ would mearly be for additional selling down the track (to maybe fund other ventures).
Anyway – I’ll followup on your suggestions with the relevant people.
Good advice from Richard here. Beware subdividing takes time (min of 2 years) and then there’s water, sewerage, council fees, engineers, surveyors and the list goes on….
AJBS
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