How to select a good Subdivision site?

[Elke]

Our goal is cash flow positive/neutral, and manufacture equity over time by subdividing a larger size block.

We are looking at a house on land size 847m. 19m street frontage, 45m deep. Or is it 50. Anyway, it's big and it's wide. Now...is it TOO wide and big? It eats into our land tax exemption. What't the minimum land dimensions does anyone know, in NSW, for a subdivision to put another home/units in the backyard?

Our criteria for subdivision is:
1. 15m + street frontage (is it the local council who sets this criteria?)
2. level or near enough
3. Existing house is solid, needs no renovation bar a lick of paint and perhaps carpets but otherwise nothing.
4. then the usual criteria for desirability for liveability.

 

[Scott No Mates]

Each council area has different requirements. In Blacktown you would need 800 m2 or 850 m2 if it were a corner site but other councils want 500m2 minimum block sizes.

I wouldn't disregard a house because it needs minor work - could be advantageous to spend on kitchen/bathroom and exterior render/paint if it rings all of your other bells.

 

[Elke]

Hi Scott
Thanks. We are looking at one 850m 2 and now wonder if it's TOO big! Will it drink up all our land tax free threshold?? esp as we will not develop it for at least 3years. the home on it is solid and only needs painting. It is not dead level but a very gentle slope down hill awy from the house. 19 m street frontage.

 

[z611143]

Never too big surely?

Im personally looking for something locally where i can rent the property out so needs to be decent house, decent area to attract the right tenants but something with also subdivision/developmental potential down the track (has to be proposed though).

 

[Scott No Mates]

Never too big surely?

Im personally looking for something locally where i can rent the property out so needs to be decent house, decent area to attract the right tenants but something with also subdivision/developmental potential down the track (has to be proposed though).

It can be 'too big' - it becomes unviable for a two lot subdivision or not quite big enough to get an extra property out of the subdivision.

 

[z611143]

It can be 'too big' - it becomes unviable for a two lot subdivision or not quite big enough to get an extra property out of the subdivision.

I think i see what your saying.

Unrequired land, basically paying extra for the land that doeant make a difference to more properties, maybe it just increases potential price of the larger subdivisions, however mayne not enough to be worth it?

 

[thatbum]

I think i see what your saying.

Unrequired land, basically paying extra for the land that doeant make a difference to more properties, maybe it just increases potential price of the larger subdivisions, however mayne not enough to be worth it?

I cant remember the last time where I saw a situation where the extra land wasn't worth it.

 

[Elke]

It can be 'too big' - it becomes unviable for a two lot subdivision or not quite big enough to get an extra property out of the subdivision.

Hi Scott
Yes, that is what I was getting at. I'm still trying to understand land tax (only heard about it today) and so, if a block only 'needs' to be, say, 600m2 to subdivide, and this one is 850, then that extra 250 is generating more land tax and not really earning me any money. or something.

The block is 19m x 45m.

 

[Elke]

Each council area has different requirements. In Blacktown you would need 800 m2 or 850 m2 if it were a corner site but other councils want 500m2 minimum block sizes.

I wouldn't disregard a house because it needs minor work - could be advantageous to spend on kitchen/bathroom and exterior render/paint if it rings all of your other bells.

Yes Scott, I do actually agree...it's just that we've been renovating another place and it's really dragged because there's been a lot of rain (or is it just it rains the days the painters/tradies are supposed to come??). So, yes, we have done the reno and would do it again...just not right now LOL.