Neighbour's selling

My neighbor is selling their property, which is a flat, 800sqm block. Mine is the same size. I am just thinking if I get it, might be able to put five row terraces on it?

But looking at the development guideline of the council, it says row terraces are allowed in certain area. Now how do I know if it's allowed or not? Because it doesn't specify what area it is.... So the only way to find that out is to apply for it? That would be pretty risky because after calculation, I need to be able to build 5 at least to make some profit, otherwise it's really hard....

Anyone has any success experience on sub-dividing to share? Thanks...
 
You might find it would depend on suitability of the area for that type of development. If close to parks, shopping strips and transport then maybe.

Try and find a copy of the development rules / town plan or consult with a town planner.

Some town planners charge a relatively small fee to provide this type of advice.

( caveat - read the story in the latest Australian Property Investor magazine as sometimes even councils don't know their own rules )
 
Plus in the mean time most councils have their Lep and dcp online inlcuding zone maps - it depends on the council how modern their systems are.
 
First step is to look up the address against the sa council map site adn get the policy area, then read the councils allowed development in that policy area.

Council lga's are made up of multiple policy areas and its not uniform across the suburb
 
Yeah i did check the development guideline, and seems like i can put 5 down there, but the cost isn't cheap...

My home price: $580k
Neighbour price: $600k
Sub divide cost: $20k
Demolition & earthwork: $40k

Just simply land cost would already cost me 1,240k. So, if i put five there it would be $250k just for the land cost. Adding building cost in would be $450k - 500k.

Looking at listing on the market, a semi detached or row terrace in the area can only sell for $470k-$520k... Seems like not worth....
 
Something sounds off 1600m is a lot of land for 5 terraces or else they are huge. Check if you can't get more on there. Also either your build assumption may be too high (unless the are in fact quite large) or your end sales low. Of course if these numbers are all solid then it is a no brainer don't develop it. Just seems iffy
 
How much you think the yield would rental be? You may still buy it today and keep it for long term to sell it to another developer?

A builder/ developer will make more since they can build for cheaper so what not worth to you may worth to them

I have a friend, brought his rear neighbour house then push his fence back so he so bigger yard for the kids..lol
 
How much you think the yield would rental be? You may still buy it today and keep it for long term to sell it to another developer?

A builder/ developer will make more since they can build for cheaper so what not worth to you may worth to them

I have a friend, brought his rear neighbour house then push his fence back so he so bigger yard for the kids..lol

Rental would be pretty low as its quite dated fittings... probably 2-3%.
 
Something sounds off 1600m is a lot of land for 5 terraces or else they are huge. Check if you can't get more on there. Also either your build assumption may be too high (unless the are in fact quite large) or your end sales low. Of course if these numbers are all solid then it is a no brainer don't develop it. Just seems iffy

I know! Only in Adelaide you see councils with that strict requirements.... I have seen 400sqm in Melbourne and gets divided into three...
 
Not always the case, pending council a lot of what is written can be guidelines. A lot of the time is all about the product that you can put on there and does it work. Speak with council planner or town planner. My development is Highbury TTG council min lot size is meant to be 300sqm, none of mine are that smallest is 218sqm. It was allowed because the design works for the lot.
 
Yeah i did check the development guideline, and seems like i can put 5 down there, but the cost isn't cheap...

My home price: $580k
Neighbour price: $600k
Sub divide cost: $20k
Demolition & earthwork: $40k

Just simply land cost would already cost me 1,240k. So, if i put five there it would be $250k just for the land cost. Adding building cost in would be $450k - 500k.

Looking at listing on the market, a semi detached or row terrace in the area can only sell for $470k-$520k... Seems like not worth....

2 to 5 subdivision for only 20K??? How are you achieving this?
 
I know! Only in Adelaide you see councils with that strict requirements.... I have seen 400sqm in Melbourne and gets divided into three...

I wouldn't agree with is

A lot of councils in Adelaide allow blocks with very small frontages (8m?)
You only see that in melbourne in a small number of old school inner city suburbs - Richmond

In Brisbane - 400sqm is pretty much the minimum lot size city wide (few exceptions , kangaroo point?)
 
Not always the case, pending council a lot of what is written can be guidelines. A lot of the time is all about the product that you can put on there and does it work. Speak with council planner or town planner. My development is Highbury TTG council min lot size is meant to be 300sqm, none of mine are that smallest is 218sqm. It was allowed because the design works for the lot.

When you said town planner, do you mean like to go to a land surveyor and pay for their consulting service?
 
Would they charge me for like those advice?

Yes. And you should pay. Because if they can solve the problems you are asking here you stand to make a significant profit. That is what property development is, finding a problem, fixing it, paying a team, achieving higher use for a site. Get used to needing to pay for good advice, it is essential. You don't want to penny pinch and try and do it all. What if they know something you don't and can get 2 or 3 more dwellings on the site that you think you can?
 
Yes. And you should pay. Because if they can solve the problems you are asking here you stand to make a significant profit. That is what property development is, finding a problem, fixing it, paying a team, achieving higher use for a site. Get used to needing to pay for good advice, it is essential. You don't want to penny pinch and try and do it all. What if they know something you don't and can get 2 or 3 more dwellings on the site that you think you can?

Oh, but I don't even know if I could win the auction from the sale yet.
 
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