Next steps to build a unit at the rear/sub-divide

Hi All,

I am new member of this forum thought have read a few posts.

I bought a property with Council approval to build a single story unit at the rear of the existing single story house in the front.

I want to confirm that I understand the next steps and questions on some of the steps. I will really appreciate any inputs. Reference of any related posts will be appreciated as well. Thanks.

1. Council Permit with endorsed plans [ Completed ]
2. Get Architecture / detail design ( Not sure about the right term here and most of ambiguity is here for me - estimated costs and whom to go to, will it make sense to go the design group who did the plans for council approval)
3. Find a builder ( get price estimation and select a builder)
4. Organise Finance
5. Construction commence
6. Organise utilities connection - Electricity/Gas/Water ( Will it be organised by builder ? I understand from some forums that these costs are typically overlooked in planning )
7. Construction complete
8. Request for subdivide ? ( Is this where I contact council for subdivide again ? what would be rough cost ? Someone mentioned to me it could be around $5k)
9. Sub-division completed (I am assuming some sort of approval from council will complete this step )
10. Find a tenant (not considering selling immediately )

Thanks.
 
If its subdivision of land add consult surveyor at point 0.

Thanks for the advice. Though as #1 is already completed in the form of council approved plans , I believe this step may not be required here.

I am not really sure about #2 though - should #2 and #3 be done in conjunction keeping the budget in mind and what is the kep outpur of step#2, detailed designs ?
 
Combine step 2 with 8.
Step 9 doesn't happen miraculously. Fair bit of work involved there.
Step 2 also involves engineering.
Step 6 is you and the builder.

You need to be on top of step 9 which also involves steps 8 and 9 otherwise you will be waiting for titles for a long time after the construction would have finished.

Oscar
 
As Oscar pointed out, there is a lot more work in the subdivision that most realise - In terms of time and work involved.

I generally apply for the planning permit to subdivide after the slabs are down, that way the surveyor can shoot points on the as constructed buildings. This also saves having to do a feature survey, saving money.

Under step 6, make sure all parties involved (surveyor, builder, council, plumber and electrician) are all using the same lot numbers. Sounds simple, but if it gets messed up, will give you no end of headaches with the gas and electricity companies.

The cost for point 8 will vary depending on where in the process you actually do it. There shouldn't be a POS contribution for a two-lotter.
 
Many Thanks Oscar and Bennny for the valuable advice ! It does make me more informed and prepared.

A silly question, A friend of mine (though with no real experience in subdivision) says his understanding is that -

"In a scenario like this ( one existing dwelling and permit in place for building second dwelling in the rear), actual 'subdivision' may not be immediately required if I plan to rent out both properties. Subdivision (steps#8 & #9) will be required when I want to sell one or both of dwellings."

I didn't believe that is correct but I thought I might ask this question here and hope for some of the experts to comment on.

Thanks again.
 
Yes, you won't need to subdivide until you want to sell.

The bank will value the two properties on one title significantly lower than what they would if it were subdivided; so it's money well spent.

The extra equity means you could possibly move into your next project; so it all depends on your circumstances.

If you want to do another one asap, subdivide now, if you're just going to sit on these two, don't subdivide now.
 
"In a scenario like this ( one existing dwelling and permit in place for building second dwelling in the rear), actual 'subdivision' may not be immediately required if I plan to rent out both properties. Subdivision (steps#8 & #9) will be required when I want to sell one or both of dwellings."

That's right - you don't HAVE to subdivide to rent out your units. When you sell, however, you obviously need to do it as the new purchaser needs clean title. Lots of people don't subdivide straight away as the council contribution can be quite a significant cash outflow.
 
Regarding Step 2, it's always useful to speak to the original designer of the development to gain an understanding of their fees, services and you might obtain some useful information from them as they should have a fairly intimate knowledge of the site. They should have obtained a site feature survey as well as part of their planning application.

Regarding sub-division, I am working on a project in Truganina (not far from Laverton) where two units have been designed and approved at the rear of a dwelling on a 600sqm block. The client decided to sub-divide BEFORE construction to obtain higher valuations on the development for finance reasons. I am not a financier so I do not know the ins and outs of that but from what I know, the result was a positive one for the client.

Cheers,
Kev
 
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