Forums / Property Investing / Value Adding / Sub division costs

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  • Profile photo of Ross.PoulterRoss.Poulter
    Member
    @ross.poulter
    Join Date: 2012
    Post Count: 19

    Hi all,

    I am looking at the viability of a small sub division.

    It is approx 80-100kms out of Melbourne.

    It is a flat block with a small amount of vegetation on it.

    I was wondering if there is a basic rule of thumb allowance for division and construction costs. eg $20k per block for surveying, water and council fees, $30k per block for roads, foot paths, other services etc.

    Looking to achieve 12 house block size lots.

    Want to be able to break it down to a cost per lot, to see if it is worth all the outlay required.

    Any other hidden costs I should know about.

    I have had a quote to get an ecology assessment done, for just a basic overview is $2,000. For a detailed report for council cost goes up from there.

    Any help or direction would be greatly appreciated.

    Thanks,

    Ross

    Profile photo of JhaiMitchellJhaiMitchell
    Member
    @jhaimitchell
    Join Date: 2012
    Post Count: 30

    I recommend you invest your time in calling and is looking up the costs. It is best to get as accurate as possible even in the do diligence phase rather than settling for a rule of thumb. When you're looking at something This size you have to be even more diligent with the numbers. 

    Costs will range from council the council and you will be surprised at how this can all add up. I know it's a lot of work but it's well worth it and it will help you guesstimate in the future as well.

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