Cost of 2 lot subdivison in rural Victoria

[warek]

Hi there

Thinking of my first subdivision project. We are looking at buying a country lifestyle 2.5 hectare block with house at front corner as a potential future PPOR. It is in country Victoria about 140 km from CBD, and zoned rural living. I don't want to maintain 2.5 hectares and the shire has said minimum subdivision is 1 hectare in this area. It is on a corner so has dual access, and is on gravel back roads, so no VicRoads road impact. I am thinking about a 2 lot subdivision and selling the second lot.

Not sure if subdivide 1 Hecate or 1.5? Any suggestions as to what might be more appealing to another lifestyle buyer?

Or could it be a cheaper way to get a lifestyle block for a future house build, and I may sell existing house and 1-1.5 hectare. Are there any major problems or tax implications with this strategy and how would CGT be worked out?

Houses have their individual septic systems and there is no town water or natural gas in this area. Electricity is on site.

Council costs are around $530, but I am interested in other big ticket costs like surveyors and whatever other major costs are usually involved to make a two lot subdivision

Thanks for any advice


Kevin

 

[Nash13]

Before getting to far down the track it would be worthwhile to check if any overlays affect the land. Two to be wary of in your situation would be Environmental Significance and Bushfire Management. Often we find that subdivision just is not possible, even though a landowner may meet the minimum lot size of the zone.

Feel free to send me a PM or post Zone/schedule and Overlays/schedule. Cheers

 

[Nash13]

Subdivision looks do-able, your biggest hurdle will be whether the second lot is suitable to accommodate another septic system. Costs for subdivision would include...

Council permit fee - $386
Town planning (prep report and preliminary plans) - $1,500 +
Land capability assessment - $1,500 +
Surveyor (will vary based on available cadastral information) - $3,000 +
Council certification fee - $120

There will also be construction costs and service provider fees to extend utilities to the new lot and to a establish a crossover.

The size of your lots will depend of characteristics of the land. Is a cleared building area available that achieves appropriate orientation and setbacks from boundaries?

Happy to answer other questions. Cheers.

 

[warek]

land certification ? and do you need soil tests

Nash 13

I have been reading about the expense of soil tests, is this something you would need to do when subdividing?
Do you need to get a building envelope and septic area created and approved as part of subdivision, or is that for the new owner to discuss with council when applying for planning/building permits?

Can you explain what a land capability assessment means?

Thanks again for your input

Kevin

 

[Nash13]

Hi Kevin

You will need to demonstrate that the new lot can accommodate a building and wastewater envelope. This is something that will need to be demonstrated within your town planning submission.

The actual installation of the septic/wastewater system and disposal field would be undertaken by the new landowner (they will need to obtain a septic tank permit when a building permit is lodged for construction).

A LCA is a wastewater management assessment/program that is designed to assess the capability of the site to sustainably management wastewater within allotment boundaries. This is generally assessed against a set of EPA guidelines.

A soil test associated with the construction of a dwelling is something that is generally required at the building permit stage, not necessary for a subdivision planning permit.

 

[MelbInvester]

You will need to demonstrate that the new lot can accommodate a building and wastewater envelope. This is something that will need to be demonstrated within your town planning submission.

HI Nish,

You mean Architecture need to draw some House plans?

MI