- ChrisBirnieParticipant@chrisbirnieJoin Date: 2013Post Count: 3
Hi Guys i am thinking of developing our live in property in Kilsyth. There is a 4 unit development going on the block next door to us maybe about same size as ours or slightly bigger (1000 sqm) so it seems getting approval should be ok. The property is mortgage free. The block is also a sloping block so groundworks would be required.
We would demolish the existing house then keep one for ourselves and either sell or rent out the others.
My questions are:
Rough Costs to subdivide the block into 3 or 4
Architect and approval / permit costs
Anything else i haven’t thought of. I’m trying to get a ballpark figure to see if its worth while.parraeelsParticipant@pankitJoin Date: 2015Post Count: 7
Council approval cant cost between 20-30K relaying of which type of report need to prepare by experts (statement of environmental effects, stormwater, geotech, traffic, asbestos, noise etc).
Demolition can cost around 10K. Basic services cost 15K (sewer, electricity, water).
Not able to make comments on construction & landscaping costs.
Also consider Capital gain tax, GST, real estate fees, advertisement cost, rental cost (while units develop).#Planning PermitParticipant@planningJoin Date: 2014Post Count: 64
Your subdivisions costs could be anywhere above $15,000 depending on the location of the services. Generally subdivision for a four lot could be in the 30K range but that’s a guess without checking all the assets
Demolition will be around 15K Then you need to think of all the Council fees and contributions, if applicable, which could be around 5% of the value. The surveyors will charge to draw the subdivision plan and manage it all the way to certification.
Planning Application fees are anything above $15,000. Your civil engineer will most likely be required for the drainage design as could a landscape designer. The most important thing to consider is your site on its own merit. Sure a precedence is a great benefit to have but each application is assessed on its own merit at Council.#Planning PermitParticipant@planningJoin Date: 2014Post Count: 64
You could read a basic subdivision process article on the Property Investing website. Here is a link
https://www.propertyinvesting.com/topic/4999581-subdivision-process-in-melbourne/Walking to runParticipant@alisdair-horgenJoin Date: 2014Post Count: 68
Consider your loan also, a mortgage broker will be able to comment here but I think 4 properties is the maximum you can build on a normal 95% LVR, there are more available for 3 buildings I believe. Otherwise construction loans are 70% LVR or in that kind of area.Corey BattParticipant@cjaysaJoin Date: 2012Post Count: 1,010
Consider your loan also, a mortgage broker will be able to comment here but I think 4 properties is the maximum you can build on a normal 95% LVR, there are more available for 3 buildings I believe. Otherwise construction loans are 70% LVR or in that kind of area.
And it is dependent on lender. Some lenders will only allow 2 at 70%, whilst others can do a 4 pack at 90%. Finance certainly is a strong consideration if you are reliant upon it to meet your development strategy.