Hi SS Gurus,
I found a nice house in Ipswich on 1500 SQM block on 2 streets, driveway is only to the back street. The house is around 30K?s dearer than similar ones on 600-700 blocks. I looked at the council website and the house is zoned as Residential low density.
The houses across the street around 200M away are zoned as Medium density, and majority of the blocks have 5-7 units on each block.
The council planner told me that
1- The house cannot have access to the front street as it is near to an intersection.
2- At the moment it can be subdivided into only 2 blocks, and she didn?t give me indication about future plans.
My questions:
Town planner told me to subdivide I will need to arrange for the sewerage and the paving to the street, which I am not clear about. She said that paving is currently 6.8 meters and it needs to be 8 meters if I am going to subdivide. What does the paving part mean?
From previous research and other posts, I read that subdivision costs around roughly 40K?s, is the above considered part of that cost.
My strategy is to buy and hold, so maybe I will leave that house as it is for around 10 years, maybe the zoning will change, and if not, I can still subdivide and sell vacant block. Based on the house price and rent, the as is gross rental return is 5.3%. I bought another house in the same suburb and the gross rental return is 6.5%, so 1.2% difference.
I hope you guys can help me with your advice and your previous experience with such cases.
Thanks
Ram
I found a nice house in Ipswich on 1500 SQM block on 2 streets, driveway is only to the back street. The house is around 30K?s dearer than similar ones on 600-700 blocks. I looked at the council website and the house is zoned as Residential low density.
The houses across the street around 200M away are zoned as Medium density, and majority of the blocks have 5-7 units on each block.
The council planner told me that
1- The house cannot have access to the front street as it is near to an intersection.
2- At the moment it can be subdivided into only 2 blocks, and she didn?t give me indication about future plans.
My questions:
Town planner told me to subdivide I will need to arrange for the sewerage and the paving to the street, which I am not clear about. She said that paving is currently 6.8 meters and it needs to be 8 meters if I am going to subdivide. What does the paving part mean?
From previous research and other posts, I read that subdivision costs around roughly 40K?s, is the above considered part of that cost.
My strategy is to buy and hold, so maybe I will leave that house as it is for around 10 years, maybe the zoning will change, and if not, I can still subdivide and sell vacant block. Based on the house price and rent, the as is gross rental return is 5.3%. I bought another house in the same suburb and the gross rental return is 6.5%, so 1.2% difference.
I hope you guys can help me with your advice and your previous experience with such cases.
Thanks
Ram
