Hi all,
I'm settling down on the kind of property I want to purchase next, and I'm basically looking at something with decent yield, but the ability to develop an extra residence on the land. This would be for long term buy and hold with the intention of increasing yield. Its also possible we might not do the development side for a couple years. Pretty much all the info I can find on these things assume the goal is to subdivide and sell for profit. So I've got a couple of questions I'd like some feedback on.
1. If you don't intend to sell, is there a need to sub-divide?
2. If not, is the process of approvals/etc generally easier or harder without sub-dividing?
3. Any benefits to sub-dividing beyond adding some value if I want to refinance?
Also, a lot of the properties being advertised as "potential to develop" are such that the only real access to the rear of the property is via the current driveway. Basically if you did sub-divide it would be a battleaxe sub-division, but the driveway would need to be common property. I've seen an example of this in the area, so it seems possible. Presumably if I don't need to subdivide then its a lot easier to handle this kind of thing. However:
4. Is this kind of sub-division common or harder to get through usually?
5. Is there likely any kind of requirement for width? Some of the driveways are fairly narrow gap between house and fence.
I guess:
6: What kind of person am I best talking to if these are questions best answered by local experts? Council, town planner, surveyer?
Any general tips or thoughts?
Oh yes, one more questions:
7. Is there usually any issue removing (or moving) shedding/carports etc?
Hi,
I will try to offer some help but alot of this depends on where you are intending to buy.
1. You can still subdivide if you don't intend to sell, because it still means you will get an extra block of land. You can then keep the original residence and just sell off the subdivided block to make some instant cash. Or you can then build on the subdivided block and rent out both of them for 2 income streams OR finally you could sell both of them.
2. This will depend on the council. It may actually be harder to get approval for a 2nd residence on the same block. However, it will definately be more expensive to do the sub-division (and probably take longer for approval).
3. The extra equity gained will be the main reason for sub-dividing. But don't just think that sub-dividing is a guaranteed way of making money. It depends on the area (eg. sub-dividing in a rural area could prove of little benefit).
4. I don't know if battle-axes are harder to get approval for. I would think not, it just means you may need to spend more money on provide access to the back block (eg. 2 driveways).
5. I would say there would be a minimum requirement for width, it at least needs to fit the width of a car!
6. I would try and get an info pack from the relevant council if that's possible but they are the people to speak to as they are the ones enforcing all the rules and restrictions. You can also sometimes find blocks that already have development approval so that you've got that security when purchasing the block.
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Darren
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