rural subdivision

[zenq]

I am about to embark on a small rural residential subdivision (near Cairns, FNQ).
I have 12.5 acres in an acreage area, and intend to divide it into 3-5 large rural res blocks. I am going for larger blocks due to undulating topograph (gully on part of block) and because most blocks in the area are 1 acre and I want to offer an alternative for people who want more space (and minimise my neighbours if I keep a block. Was talking to my surveyor, and he reccommended I submit the development application myself, stating that council is more demanding of professionally submitted applications than DIY owner ones. I think its partly because he is busy, and knows he can't make the same money doing that as surveying. However I've looked at the forms, and they really are overwhelming. I could do them, but I know I'd end up with headaches and delays, so I'm going to go to a town planner or construction approvals company.
What would people suggest, seems to me a good idea to get town planner on board, esp as I hope to do a bigger development down the track: means I would learn more now, even if it cost a bit more.
Also, what is the expected range of development costs and returns on this type of property development? Land has Elec, water, phone, but no sewerage running by (septic area)
Present land value: approx $230k, est value of completed blocks: $110-170k each?
Should I get valuations on the proposed blocks before proceeding further?
Thanks guys.

 

[kph]

We are doing something similar 2 hours out of Brisbane.
60 acres with DA for 32 lots currently before council.

What would I suggest ?
Engage all the consultants and professionals you need to get it done.
Don't try and do it yourself.
We went so far as to engage the local Landcare people to prepare a report and make recommendations on best environmental practice, to overcome a minor problem with DNR which could have caused endless delays.

As far as dividing into larger blocks than is currently available in the area, you should do some comparisons between costs and market values of doing the maximum number under the current zoning vs doing the larger blocks and see how it stacks up commercially.

Hard to work this out without some accurate numbers ( the price range you suggest is too large !! @ $110k to $170k)
Development costs, once again depending on what you need to do to get it to the title stage, and your town planner or development consultant should have a better idea of these.
In the end, it all goes out for quotes and/or tender anyway.

Should you get a appraisal of the proposed blocks? Absolutely ! A good place to start. Get the opinion or some sales evidence for similar acerage land in the area, from a good and informed agent, and work backwards from there. This shoud give you a better idea on whether you do less but larger blocks, or more but smaller blocks.

Suggested returns?
I would love to hear the opinions of others, but we are working on a profit margin of 39% (profit/sales) and a return on project of 69% (profit/costs)

kp

 

[zenq]

Thanks kph
The range reflects variety between the blocks themselves as much as price uncertainty: some are elevated with views, others have creek frontage, etc.
I will act on your suggestions.
Wondered if having development application put into council and accepted will improved valuation, giving me further funds to proceed with development?
Is this what a DA is? or is that just a reflection of zoning. The terms seems less used here than down south.
An appeal of minimising the number of blocks is to utilise existing infrastructure: eg: road access (rather than putting in new roads to service blocks) to reduce development costs. Because of a creek going through the middle of the property, I can't put a single road into the centre of the land and have a dozen blocks fronting it.