All Topics / Creative Investing / Subdividing with a neighbour

Viewing 5 posts - 1 through 5 (of 5 total)
  • Walking to run
    Participant
    @alisdair-horgen
    Join Date: 2014
    Post Count: 68

    In this hypothetical scenario I live in property a with a sizeable block of 700 metre squared and my neighbour lives next door in property b with the same size block. We talk over the fence and realise if we put our properties together up for a subdivision application we may have more to gain.

    Are council likely to grant this as we have two different names on different titles? What other complications are likely to arise in regards to council?

    So, turns out neighbour a and b want to finance their subdivision together, and develop $2 million of construction. What are the loan implications? Does it mean we have to get a commercial loan? LVR 70%

    Just wondering if anyone has any knowledge or experience with this.

    Thanks.

    Profile photo of Kate AshmorKate Ashmor
    Participant
    @kateashmor
    Join Date: 2015
    Post Count: 20

    You can enter into a joint venture agreement. Best to talk to your accountant about the tax implications, as well as a lawyer who can draw up the agreement. Each owner should obtain their own independent legal advice.

    This article might be of interest: http://www.news.com.au/finance/real-estate/neighbourly-approach-to-selling-nets-big-rewards-from-developers/story-fndba8uq-1227033731861

    Good luck!

    Kate Ashmor | Ashmor Legal Pty Ltd
    http://www.ashmorlegal.com.au
    Email Me

    Property Lawyer and Opiner

    Profile photo of aussieguy2000aussieguy2000
    Participant
    @aussieguy2000
    Join Date: 2010
    Post Count: 81

    Depends on the council, if you have ever watched ACA or Today Tonight there have been 4+ story apartments build next to houses, leaving them in the shade all day (corrupt politicians doing anything for a buck) and others that are so strict that you make your front fence an inch higher than regulation they make you knock it down and redo it. So I am betting depending on the council and how much your other neighbours agree with it or protest it will be the biggest factor. As for turning two standard low density residential blocks into a mid-high density complex, no idea on the regulations with this.

    Walking to run
    Participant
    @alisdair-horgen
    Join Date: 2014
    Post Count: 68

    No offence but I consider very little on a current affair type shows. I’d prefer inexpert tips on this forum as even the most pedestrian idea here is likely to be more helpful. Thanks though, shade is a consideration.

    Profile photo of BuyersAgentBuyersAgent
    Participant
    @knightm
    Join Date: 2005
    Post Count: 338

    Joint ventures are certainly possible. Rob Balanda a very well known oz property solicitor has a series of educational resources available on this topic 2 are relevant:
    1 Joint Ventures Made Simple
    2 Options Made Simple

    In 1 you do the project together
    In 2 one of you options the other’s site for slightly more than market value and does the work then buys the other out. (or the developer options both, does the work then buys you both out)

    Probably 1 is better for you, but be aware you need an agreement in writing and you really (really) need to trust them – that means personality, stress tolerance, financial backing etc.

    • This reply was modified 6 years, 1 month ago by Profile photo of BuyersAgent BuyersAgent.

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