Backyard subdivision? anyone doing it?

Y

YvonneVincent

Just interested in how somersoft ppl here are doing this kind of small development before or just buy and hoid

Are u finding it hard to sell the chopped backyard?

Do u find the original house at the front devalued a lot like >10% after the subdivision?

How much did u spend on in the subdivision process?including all the pro fees, council charges and utility contributions etcv

how long did ur council take for the permits etc?
 
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Hi Yvonne,

Subdivision is really a question of how long is a piece of string. Fees vary on councils, professionals used, no. of lots, type of subdivision, size of land etc.

Yes you should expect the front house to devalue with subdivision. This is why many avid developers renovate the front house to minimise losses (or sometimes increase value).

Sale of the backyard ultimately comes down to your area. If it was impossible to sell the backyard then subdivisions would slow down. We only see more and more coming through so if that's any indication. A backyard just down the street from me was on the market for about a month before selling so doesn't seem to be too long of a wait. Selling with plans and permits will definitely add value.

For a land-only subdivision, start to finish, normal residential block with all costs you should expect around the $25k mark (Excluding utilities). Obviously this will fluctuate with what professionals you use and how much leg-work you will do.

Councils quote 60 days to approve planning permits. By all means don't take this as a deadline. We've had some projects where it's come close to 12 months for councils to get permits sorted. Ultimately it depends on their workflow at a given time. Development does thin out over summer and get incredibly busy in winter. (Not ideal for surveyors working outside!).

Hopefully this answers your questions!
 
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YvonneVincent said:
Just interested in how somersoft ppl here are doing this kind of small development before or just buy and hoid

Are u finding it hard to sell the chopped backyard?
This will depend on the location and condition of the land etc.

Do u find the original house at the front devalued a lot like >10% after the subdivision?
Could do but there are ways to increase it as well.

How much did u spend on in the subdivision process?including all the pro fees, council charges and utility contributions etcv
Allow $50,000 and you should be okay

how long did ur council take for the permits etc?
Click to expand...
1 week or 9 months all depends on council

 
$37,000 all up for a simple 1 lot into 2 subdivision (hammerhead) in Adelaide metropolitan suburb, massive cost blow outs for a first timer that couldn't see in advance where they would come from, plus alot of DIY hard work- putting up new fence, redirecting stormwater, installing new driveway, paying for trees/shed/concrete/rainwater tank to be removed dumped, and after 21 months still waiting for titles.

Would I do it again...?

HELL YES :)
 
Brisbane Costs
My Town Planning Fees: $2200
Public Notification $700
Council: $2200 or $3245 depending on whether you tick all the boxes
Infrastructure Charges: $26,000
Surveyor: $2000-$5000 depending on line of sight on boundaries and Nearest permanent marker
Plan Sealing Fees $1,500
New Water and Sewerage Connections - cheap to very expensive depends on location

hope that helps
 
A question for the townplanners, once council has stamped and approved a subdivision, can they withdraw the offer because the house is to close to the boundary? I have a situation where they approved subdivision and I have discovered the old house will be to close to the boundary
 
Buy subdividing and doing a reno, I create 20% equity on the front house and it is neutral to slightly positive to hold, after the sale of the rear block.

9-12 months to get the title

I allow 25k costs for subdivision, the reno depends on the house.

It sounds easy to do but be prepared to spend a lot of money before seeing anything in return and also spend a lot of time organizing with brokers, trades, council, surveyors, real estate agents, tenants etc...

Chomp
 
Firstly, you have approved plans, the developed site must reflect the approved plans to get to plan sealing. If the plans show the existing house is further away then it actually is, you need to get that signed off.

The plan sealing needs to be done by surveyor and the plans they submit to council for plan sealing have to reflect the plans in the approval.
 
Thanks. The existing house sits on the new boundary for where the new driveway will pass, council has approved this but the existing house should really be 1.5metres off the new boundary.
Could I have any problems with this or is it a done deal seen as council has already stamped the plans?


Also I have to complete the installation of driveway, power water etc to get a new title, do you know if I can submit a building application now (and start building) before completing the subdivision?
If I complete subdivision first and install a concrete driveway, it is going to break when the trucks go in and out to build the house.

Thanks
 
I am talking from a QLD perspective here.

If Council has approved it on the plans and in that position, then it is approved. You need a surveyor and private certifier to finalise the development, so show the plans to them to see if you have any issue.

It can help with cash flow if you build the house first, as you then don't pay infrastructure charges.

You will probably need a rumble pad (large gravel or rec conc) to limit soil transfer to street and gutters. Driveway should be last thing you build.
 
RPI said:
I am talking from a QLD perspective here.

If Council has approved it on the plans and in that position, then it is approved. You need a surveyor and private certifier to finalise the development, so show the plans to them to see if you have any issue.

It can help with cash flow if you build the house first, as you then don't pay infrastructure charges.

You will probably need a rumble pad (large gravel or rec conc) to limit soil transfer to street and gutters. Driveway should be last thing you build.
Click to expand...




Thanks again. Thats what I thought with regards to driveway but when I went into council they told me I need to complete the subdivision first and install a driveway before I can submit documents for building,
Council told me to talk to a building certifier,

should I just submit building documents now anyway,
 
THe building certifier is the one who controls that, so speak to them before you submit. I have a great one if the site is in Brisbane and surrounds.

Need to make sure that site is pegged out by surveyor before you start construction as boundaries are often out. What state is the site in?
 
Erica said:
$37,000 all up for a simple 1 lot into 2 subdivision

Would I do it again...?

HELL YES :)
Click to expand...

bl**dy oath ... beats working for a living. How much did you new block sell for? Say, $150,000 - profit of $113k less tax for a bit of farting around and directing of tradie traffic.
 
lizzie said:
bl**dy oath ... beats working for a living. How much did you new block sell for? Say, $150,000 - profit of $113k less tax for a bit of farting around and directing of tradie traffic.
Click to expand...

Working on extremely rough figures, if your house is worth say $500k and after the subdivision it decreases to say $425k you lose $75k on the value of the house.

You have made $113k on the subdivision. Tax at 30% takes this down to roughly $80k. So after all the farting around you end up approximately neutral. Worse if you're on a higher tax bracket.

Am I missing something?

Can you claim the subdivision costs on tax?
 
RPI said:
Brisbane Costs
My Town Planning Fees: $2200
Public Notification $700
Council: $2200 or $3245 depending on whether you tick all the boxes
Infrastructure Charges: $26,000
Surveyor: $2000-$5000 depending on line of sight on boundaries and Nearest permanent marker
Plan Sealing Fees $1,500
New Water and Sewerage Connections - cheap to very expensive depends on location

hope that helps
Click to expand...

Hey Darryl,

Do you know these approximate costs for an Ipswich sub-division?

AB
 
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