Costs for Green Title Lots

[MTR]

Hi All
Currently looking at a property which is on a corner, 800+ sqm.

What I would like to do is calve the block into 2 lots (making 2 green titles), current zoning R20/25, have been told that the R25 applies for this section of the area and each lot would be around 400 sqm.

Never looked at this before, what are all the costs besides demolishing the house, anyone been down this road??

Demolish house - $18,000


Thanks

 

[HD_ACE]

Do the services run on your side of the road or the oposite?

Cheers

 

[MTR]

Do the services run on your side of the road or the oposite?

Cheers

Hi HD
Over head power lines on my side of the road.

Unfortunately Council is closed today, just got the deal this morning and will place a DD clause, but I know if this one hits the market it will fly, because agent has underquoted IMO and corner lot over 800 sqm, they don't come along every day.

Cheers
MTR

 

[MTR]

Do the services run on your side of the road or the oposite?

Cheers

Hi HD
Over head power lines on my side of the road. Sorry to be so vague.

Unfortunately Council is closed today, just got the deal this morning and will place a DD clause, but I know if this one hits the market it will fly, because agent has underquoted IMO and corner lot over 800 sqm, they don't come along every day.

Cheers
MTR

 

[HD_ACE]

Marisa

Below is a feasability/estimate i got to split a corner block into two so should give you some idea.

The extra for green title is because the services are on the other side of the road so would require reports and works to do two green title.

This was also before wapc increased their da fees.

I chose to go built strata/survey strata with no common property as i dont see the extra costs adding to the value.

Hope it helps.

Cheers

 Subdivision Professional Fees and Application Fee - $5,860*
 Government Fees and Charges - $3,300*
 Water Corporation Fees - $7,100*
 Plumbing - $1,800*
 Western Power Fees - $1362*
 Electrical Contractor (House connection) - $1800*
 Demolition / Site Clearance - $4,000*
 Concrete parking bays - $7,000*
 Project Coordination - $4,350*
Total - $36,572
ote: An additional $15,000 should be allocated for Plumbing and Engineering requirements, if onsidering a Green Title Subdivision.
Provisional Sums Only *Not including GST

 

[MTR]

Marisa

Below is a feasability/estimate i got to split a corner block into two so should give you some idea.

The extra for green title is because the services are on the other side of the road so would require reports and works to do two green title.

This was also before wapc increased their da fees.

I chose to go built strata/survey strata with no common property as i dont see the extra costs adding to the value.

Hope it helps.

Cheers

Very helpful, thanks HD

I think I would go green title because it would add significant value as blocks are selling $420K+, City of Melville. At the moment there is a massive demand for green title block, in well established/good areas. Have to wonder, sometimes easier just to do this and flick it, will see, will look at numbers for a build, perhaps sell 1 block, keep 1.

Anyone on SS dealt with City of Melville, hope they are as easy as Cockburn Council.

Cheers
Marisa

 

[eyespy]

Amazed to see how expensive it is to just split 2 blocks.

 

[eks883]

I think I would go green title because it would add significant value as blocks are selling $420K+, City of Melville. At the moment there is a massive demand for green title block, in well established/good areas.

just curious why you say green title blocks would add significant value vs survey strata with no common property.

answers i have gotten recently in forum pretty much sums as not much difference between survey strata with no cp and green title aside from initial costs.

is it just a matter of buyer perception? people think green title more valuable, or are there other reasons. would really like to know.

 

[MTR]

I am still undecided whether to go "green title". It will probably cost me an additional $30,000 for the privilege.

In 6 months time it will be peanuts because the blocks are still rising and as there are very few vacant blocks, when any come up they get snapped up for top $.

I gut tells me its a perception thing, people will prefer to know it is a green titled block, however the disadvantage may be the set backs required for development and of course additional costs.

Will keep you all posted, I have just met with the agent, viewed the property, the house needs a major reno, seller will rent back, however it is perfect and well under market value.

Am hoping to secure it today, if not it goes to market tomorrow and as it is a corner lot, each with own frontage, there will be a bidding war and I am not prepared to come up to what it is really worth. I believe at least under market value today by as much as $70-100K.

MTR

 

[thatbum]

is it just a matter of buyer perception? people think green title more valuable, or are there other reasons. would really like to know.

I think its mostly buyer perception - especially if you're trying to sell to an above-median-price bracket.

Most people wouldn't know there isn't much difference between green title and 2 lot survey strata with no CP.

 

[westminster]

I am still undecided whether to go "green title". It will probably cost me an additional $30,000 for the privilege.

In 6 months time it will be peanuts because the blocks are still rising and as there are very few vacant blocks, when any come up they get snapped up for top $.

I gut tells me its a perception thing, people will prefer to know it is a green titled block, however the disadvantage may be the set backs required for development and of course additional costs.

Will keep you all posted, I have just met with the agent, viewed the property, the house needs a major reno, seller will rent back, however it is perfect and well under market value.

Am hoping to secure it today, if not it goes to market tomorrow and as it is a corner lot, each with own frontage, there will be a bidding war and I am not prepared to come up to what it is really worth. I believe at least under market value today by as much as $70-100K.

MTR

Good luck!

 

[MTR]

Thanks WM
Just got a call from agent I got the property and seller to rent back.

Wonderful, when the agent is working for the buyer

In this market for this property it should have gone to auction or expressions of interest.

Cheers

MTR

 

[westminster]

Thanks WM
Just got a call from agent I got the property and seller to rent back.

Wonderful, when the agent is working for the buyer

In this market for this property it should have gone to auction or expressions of interest.

Cheers

MTR

Woohooo! email me the details

 

[INVSTOR]

Thanks WM
Just got a call from agent I got the property and seller to rent back.

Wonderful, when the agent is working for the buyer

In this market for this property it should have gone to auction or expressions of interest.

Cheers

MTR

Woohooo! email me the details

Nice!! Me too please!

 

[perthguy]

w00t! well done!

 

[Ausprop]

I think its mostly buyer perception - especially if you're trying to sell to an above-median-price bracket.

true words - the costs are the same regardless of the block value, so the more valuable the block the more compelling the case

Most people wouldn't know there isn't much difference between green title and 2 lot survey strata with no CP.

true words again - amazing how misinformed people seem to be when spending so much money.

 

[MTR]

I notice the few blocks that sold in the area were all sold as green title blocks.
To date, I have not seen any block sales advertised as 'strata survey', in particular if they have street frontage, I am sure plenty out there, my point is perhaps this will scare prospective buyers.

RE agent mentioned that all they do is clarify what strata survey is with prospective and once they get their head around it seems generally not to be an issue.

 

[HD_ACE]

If everything works in your favour, you may find the expense to go green title over survey strata is minimal and worth it. If all the services run on your side of the road then it may just be the case of paying a few k to run the pipes from mains to boundry if thats all required for vacant land?


Cheers

 

[perthguy]

I notice the few blocks that sold in the area were all sold as green title blocks.
To date, I have not seen any block sales advertised as 'strata survey', in particular if they have street frontage, I am sure plenty out there, my point is perhaps this will scare prospective buyers.

RE agent mentioned that all they do is clarify what strata survey is with prospective and once they get their head around it seems generally not to be an issue.

There is a buyer perception that freehold (green title) lots are worth more. I wonder if this is because they don't understand survey strata without CP properly? In terms of perceived value (high to low) it goes: freehold->survey strata no CP->survey strata with CP->strata.

Maybe get prices on creating freehold vs survey strata no CP then make a decision?

 

[MTR]

I spent 30 minutes chatting to a surveyor who is involved with developers and he also develops himself.

He said there are many blocks now sold as survey strata and he has been doing this in Bayswater, Osborne Park all over the Perth metro area and that this is the way to go.

Because it is far cheaper and you do not require the same set backs as with a green title, therefore you have more land and consequently better outcome. He also said it is now becoming the norm practice to go this way.

I also spoke to 3 agents basically verifying this. So looks like I will be going down this road.

Cheers
MTR