We are few friends planning to get into property development.
We are planning to buy a block of land which is possible to subdivide and then do the development on that block.
Can some one suggest me what things should we consider?
Can we go for a STCA property or better to go with approved plan and permit?
– Note : Generally approved plan and permit property is way higher than STCA property
What is usual time we are looking for in process of subdivision application and approval?
– Note: We are right now looking in Knox council
If we would like to know about what is the process, what steps are involved and how much it cost to subdivide the property, whom can we contact to get more information?
– Note: If anyone here on this forum, we would like to get them contact details
Can we do the contract of sale of the property with STCA in it? If we do the contract with STCA condition and 90 days, will council approve plan and permit with in time?
How much will it cost just to get some sort of pre-approval from council for subdivision of property we are looking at
Does council will give us an idea how much subdivision (e.g. 3 townhouses / 4 units) we will get on particular property without making a real application for subdivision?BennyModerator@bennyJoin Date: 2002Post Count: 1,376
I can't help directly with your questions, but just wanted to offer an example of "options available to you" (possibly, depending on which Council…..)
Here is a link to the Brisbane City Council website.
Reading through that webpage, there are different offerings depending just where you are in the process.
In your case, perhaps the area titled "Development advice for people who are unfamiliar with the development assessment process" could work for you. Perhaps your preliminary meeting might have you put questions like "What kind of dwelling would Council see as desirable for this part of town?" Or "For this block size, in this area, could I build one/two/three separate dwellings?" Or, "Is there a better dwelling style that would allow more homes to be built – e.g. duplex/triplex instead of separate dwellings?"
Could it be that they may look more favourably on STCA dwellings, so would allow more to be built? If so, would you want that?
By asking them what they would want to see there, you should maximise your chances of having an easier approval process (almost like having "pre-approval" really!!) Later on, for a fee, you can get specific information relating to just what it is you want to do.
Good luck with your venture – and do keep in touch re results,
BennyMatrix 5Participant@matrix-5Join Date: 2012Post Count: 8
Where are you looking at doing this? What state? As every state will have different regulations
We are looking in East, South East & Bayside suburbs of Melbourne
– Ferntreegullyoc1Participant@oc1Join Date: 2012Post Count: 148
Good questions and the answers are very long and do change for different areas.
Purchasing a property advertised with the phrase STCA is not a guaranteed development site. I see properties without these words to which are development sites. You need to work out for yourself what is and what isn't a good site to develop.
Council's won't give you any answers until you actually submit the application. But you can start the process during the settlement period. With Knxo City Council it will take up to 6 months.
The areas you have mentioned are are fine but you have a lot of homework to do before you should consider buying.
You may be right that there are many properties which are not mentioned or phrased STCA in advertisment but still it could be a development site. But how can someone like me can find such a properties other than looking for phrase STCA in the advertisements. Does anyone provide this kind of service who can check or find some good development site.Matrix 5Participant@matrix-5Join Date: 2012Post Count: 8
i know in the past I have contacted the local estate agents and told them what my requirements were.
if they are decent estate agents they will keep an eye out for what they currently have or even what's coming up that hasn't quite made the books yet. Just make sure you do your research on the local sales in the area.RedwoodParticipant@redwoodJoin Date: 2013Post Count: 340
Great to hear your moving into developing.
Firstly, when going into business with friends, I always have a concern, make sure everything is documented, as many of these arrangements cause headaches.
Secondly, all of these areas have fantastic potential, by finding the right property in these areas, and with the right development, you will be in for a great profit in a few years.
Great infrastructure in the area with Trains plus Eastlink, and as you have seen Costco is in the area, many of the large developers are in the area looking at sites and already some have been purchased. You will notice the landscape changing over the next 5 years….use Box Hill as a comparison.
So Depends on the size of the block and the price you want to pay. Usual stuff look for caveats and look around the artea you are buying for other development sites. If there are, then you will most like get less rejections and push back from the council. I developed in the area in the last couple of years and found it pretty pain free with communication with the right people at he council and no objections from neighbours.
You can then look at plans for the site. I can reccomend a great person for this.
Then you will need a builder if you don't have one. I can also reccomend our builder who has done a number of developments in that area.
Depending on the development, construction will take 6-9months and at that time you can look at your sales strategy.
Be sure to do a CF analysis and approach a broker for finance there is some great ones on this forum and I can reccomend who we use also who finance many developments in the east.
Hope that helps
Hi Matrix 5,
That is also a good idea. May be I will go and talk to some good agents if they come across any such kind of property.
Thanks for your suggestions.
That is very nice brief.
I think you are right and even we friends have considered to put everything on paper.
Ya I have read lot about this area and seems these areas are very promising.
How many developments you did in these areas and what was your estimated project cost. We are thinking of either villas or townhouses.
Thanks for your advise. I will PM you later for further information.Roxy laceyMember@roxy-laceyJoin Date: 2013Post Count: 10
I think you are better off buying a block with plans and permits in place, it takes half the time to amend a permit( if you need to) than to start from scratch!
any subdivision over 2 lots will incur a public open space fee! Knox is set at 8%of the land value! whilst maroondah is 5% you will have to comply with all the subdivision permit conditions before you can obtain new titles, this will include servicing authorities, completion of development or a section 173 to link the subdivision with your development permit,
i would suggest you give JCA Land Consultants a call on 9735 4888 and get some advice
hope this helps
I did think of that. But issue is price. I saw some listing with plans and permits approved will cost around 120K to 150K more than normal lot with just STCA.
Do you know any other place where can I found planning or permit approved property other then the realestate sites like Domain and Realestate.com.au ??RedwoodParticipant@redwoodJoin Date: 2013Post Count: 340
Hi Roxy, great suggestion, we liased on the other thread, as you know, quick money can be made by buying a old house and selling with plans and permits, especially in areas where there are significant Chinese investors as you can make a premium (subject to their finance criteria). However, depending on the buy why stop there?
We generally dont stop there and develop as well. Many of our properties are purchased off market through strong relationships with agents/ sellers in the area, so usually there is a saving there too.
I think first step is find the right property and go with cash flow together/ post purchase. Microchip i'll send you a pm later to share experiences, comes down to project feasibility and finding the right property is imperative to success and profit.
FYI we are seeing significant Chinese investment driving down Whitehorse road east down to Ringwood – development site feasbility taking place daily.
You must be logged in to reply to this topic.