All Topics / Value Adding / Cost of subdivision

Viewing 5 posts - 1 through 5 (of 5 total)
  • Profile photo of BrizzaBrizza
    Participant
    @brizza
    Join Date: 2003
    Post Count: 75

    I’ve had a search through the forums and I’ve seen people estimates for subdivisions ranging from $2,000 (surveyors fees and council lodgement fees) upto $30,000 (for complications including sewer etc).

    • Has anyone got an idea what a subdivision would cost say for a flat corner block with the sewer in the normal location for a corner block (if there is one?)?

      If anyone who has done it, is willing to share an itemised list of expenses, it would be greatly appreciated.

    • What authorities do I have to contact in order to submit a DA for subdivision? I know of water, electricity, title office, council
    • Can I get a seperate DA for the subdivision and at a later date a DA for building a new dwelling or do they have to be together?
    • If I am getting one builder to erect two buildings on a split block subdivision, will some builders include the cost of subdividing as well as getting the appropriate subdivision DA from council as part of their building fee? Or do they have to have subdivisions in place first and they just purely do the building side?
    Profile photo of BrizzaBrizza
    Participant
    @brizza
    Join Date: 2003
    Post Count: 75
    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Brizza,

    This is the process in Victoria, I expect it is fairly similer elsewhere. First need a town planning permit (DA). Once you have the DA you can start building, usually you get the subdivision done once you start buoilding, a surveyor does this. The cost of a DA and surveyor would probably come in at around $10,000 for 2 units.

    As part of the town planning process all of the authorities you mentioned will be contacted if required.

    Regards
    Alistair Perry

    Profile photo of BrizzaBrizza
    Participant
    @brizza
    Join Date: 2003
    Post Count: 75

    Thanks for your reply. At the time of writing the original post, I was having trouble using the search function in this forum but have since figured it out and found a lot of my answers through various previous posts, but just another question…

    Just a thought…

    1. I obtained a normal residential construction loan pre approval.
    2. I found a property that was suitable for subdivision and constuction and bought it with an option (ie. subject to DA etc)
    3. Subdivision + Building DA is passed by council

    How would the bank go, now buying two title’s instead of one under a normal residential consturction loan? Does it strictly have to be under the one title, or does it only matter to the extent of the banks valuation (ie. the valuation of both title’s is equal to or more than the purchase price)?

    Profile photo of Alistair PerryAlistair Perry
    Participant
    @aperry
    Join Date: 2004
    Post Count: 891

    Hi Brizza,

    They will value the titles seperately and will do residential contruction loans on each, no problem.

    Regards
    Alistair Perry

Viewing 5 posts - 1 through 5 (of 5 total)

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