Property development for dummies question

[beachgurl]

As I've mentioned in a previous thread, I've bought a splitter block in Brisbane. There is a house currently on the block, which has a DA approval for subdivision straight down the middle. Titling can occur once the existing house is slid across the block.

I've appointed a draftsman, private certifier, engineer to deal with the plans/approvals for the existing house slide, but wondering what I need for the new block?

For the new block, I intend to appoint a project builder to build a standard 4x2 house on it. The new block requires its own sewer/water/electrical connections. Who do I appoint to do this? And does this all need to be arranged prior to getting a project builder involved?

 

[Scott No Mates]

Get it included in the building work. There's no point getting another plumber ir electrician involved.

 

[Rustymutt]

Hi,

Water and sewer connections in Brisbane are the responsibility of Queensland Urban Utilities (QUU) see link below. They will install a water meter to the mains water and connection point to the sewer. The quote will be based on a sketch plan by QUU for each service. You can then either engage QUU to do the works or obtain a quote from a plumber. The cost will depend on the location of the water main and the sewer and it's depth. The DA will outline the services connection required before registration of the survey plan and title. An electrician will organise connection to the Energex network.

Good luck.
RM

http://www.urbanutilities.com.au/development-services

 

[WilliamB]

I STRONGLY urge you to get quotes from private contractors for the Sewer and Water servicing. I have seen up to 250% larger quote from QUU and my plumber (inclusive of QUU application and audit fees - unavoidable either way)

 

[LJW]

Hey Beachgurl

Have you done any costings for the subdivision as part of your due diligence? If you have purchased the site with only DA approval there could potentially be quite a few outstanding costs. Have you reviewed the conditions of approval for the subdivision? If not, I would recommend doing this. You will need to connect both lots to sewer/water. You will need to engage an electrical consultant to obtain an agreement from energex/Telstra. You will probably need to connect both lots to a lawful point of discharge (install kerb adapters, assuming the site slopes to the street). You may also need to pay infrastructure contributions of $27k (assuming this hasn't already been paid). There may also be other requirements so I would recommend going through the approved conditions. The above will all need to be done before plan sealing can take place.

Cheers
Liam

 

[beachgurl]

Thanks for your responses. They've been very helpful.

Yes Liam I did some costings in the DD period but not all. I am familiar with the contributions that need to be paid and the only figure I had no idea about were the connections. Fortunately I don't need a new sewer connection for the existing house as its in a suitable location. I've put in the connection application today so it will be interesting to see what the figures gone back at.

 

[Of The Vultures]

Beachgurl if you don't mind me asking, which suburb did you purchase this property in?

 

[beachgurl]

Beachgurl if you don't mind me asking, which suburb did you purchase this property in?

I bought in chermside

 

[Of The Vultures]

Thanks beachgurl. I want to do something similar but might have to look a little further out, not sure my budget could stretch to Chermside, especially for a splitter.

Hope you keep this thread updated with your progress, good luck with it all.

 

[knightm]

Hope you keep this thread updated with your progress, good luck with it all.

Yep.

Good on you for having a go. Not many get out there and launch into something for fear of the unknown. Hope its profit (and the learning) is large in time.

 

[beachgurl]

Thanks for the advice and encouragement. The plan is to slide, raise and basic reno then sell the existing house. I will then have a project home built on the newly-created block. After the sale of the existing house, the new block should've cost me around 270K (last comparable sale in Feb of 372K) and I intend to spend around 310K on the construction. Valuation on completion should fall within the 720-750K mark which will create equity of approx 150-170K on a 12 month project. Factoring in a 20-30K contingency still makes for a worthwhile long term buy and hold in a good area.

Thought I'd share the latest curly twist in the approval process. The existing house will fit on one of the to-be subdivided blocks, with setbacks complying with with Small Lot Code. The only problem is that the Small lot code does not apply until the subdivision has been registered at the Land Titles Office. This titling cannot be done until the house is slid across the block as it currently sits in the middle of the original block (chicken and the egg scenario). So the approval needs to be assessed under the standard building code, for which the setbacks are greater. So the house does not comply with the standard setbacks. No biggie in the scale of things really, but instead of the private certifier just signing off on the approval I now need to seek permission from the neighbour to agree to the siting variation and the council needs to look at the application. I've given the neighbour two weeks to respond and then I'll get my private certifier to proceed with the application to council.

The alternative is to remove the house from the block and leave it somewhere until the subdivision is titled, then bring the house back to the block and put it where I want it to go. it will then fall within the Small Lot Code, need no neighbour permission and just a sign off from the private certifier.

Hope I haven't bored you all with the detail but writing it out is very therapeutic.

 

[eggnog]

Does the property need to be subdivided or is it already on double lots?

 

[beachgurl]

Does the property need to be subdivided or is it already on double lots?

It wasn't on a double lot but I purchased it with the subdivision approved. The house is sitting in the middle of the block so once that is moved, the new block can be registered.