Sub-Division/Unit overlay costs?

[noddy]

I am looking at understanding the developing option in more detail and realised I know little about the sub division/unit overlay costs of converting a 1 title block to allow for 3 units.

I was looking at a block in metro melb for $450K with the possibility of a 3 unit development. I know the land purchase price, I can get fixed-price build prices, but what is the cost of actually doing the unit overlay/sub-division and what are the GST/CGT implications?

Noddy

 

[duncan_m]

I am looking at understanding the developing option in more detail and realised I know little about the sub division/unit overlay costs of converting a 1 title block to allow for 3 units.

I was looking at a block in metro melb for $450K with the possibility of a 3 unit development. I know the land purchase price, I can get fixed-price build prices, but what is the cost of actually doing the unit overlay/sub-division and what are the GST/CGT implications?

Noddy

Hi BigEars,

Hopefully Michael Yardney or someone like that can chime in with some specific Melbourne knowledge..

But for what its worth.. I have 2 subdivisions underway in Adelaide.. maybe an overview of my costs could give you a ballpark idea of what yours might be at least enough to do some rough figures for your own interest until you have a firm grasp of Melbourne costs.

1. One title into 2 Community Title allotments. Govt taxes, charges and levies, $7600. Surveying and conveyancing fees $2000.

2. One title into 9 Community Title allotments. Govt taxes, charges and levies, around $26,500. Surveying/conveyancing fees $3,000

GST and CGT are minefields, there's been some great threads before and for GST there's at least 2 methods of calculating it. I dont feel competent to comment any further on GST.

 

[noddy]

Hi Duncan,

Thanks for the info. How long is it taking and did you need plans for the blocks before applying for the community title carve up?

GST and CGT info I am finding from other threads as suggested.

Whilst I am asking, does anyone know equivalent Perth costs for Strata title and for green title when splitting a larger block into three?

Noddy

 

[duncan_m]

Hi Duncan,

Thanks for the info. How long is it taking and did you need plans for the blocks before applying for the community title carve up?

GST and CGT info I am finding from other threads as suggested.

Whilst I am asking, does anyone know equivalent Perth costs for Strata title and for green title when splitting a larger block into three?

Noddy

The Development Assessment Commission and Land Titles in Adelaide are apparently overrun with work at the moment.. From lodgement to approval, to title creation is anywhere from 3-5 months.

I had to have the plans for the site before I could lodge with the DAC, it had to show common areas and unit placement.

Its a no-brainer as far as effort on my part however, the Surveyor I engaged is just running with it.. I just have to write the cheques at various stages of the process.

 

[noddy]

Any other local council involvement?

 

[duncan_m]

Any other local council involvement?

Yes the Local Council has to approve the Development Application.. I approached the council (walked in off the street) and had a long chat with a Town Planner who told me what I officially couldn't do and unofficially where I can bend the rules a little (it was a great conversation!

The approval process through council would I'm sure vary from council to council, this one will take roughly 3 months but there's already been some back and forth (to be expected) about parking etc.

Minimal costs to cuoncil, a very very small percentage of the estimated construction cost had to be paid when the DA was lodged.. in my case under $500 (for 9x2br units), but I put an extremely low estimate on the costs (I'm owner building) and they didnt question it.

 

[noddy]

Hi Duncan,

Owner building 9 units...The building authority allows it or is that they are all on one block??

 

[duncan_m]

Hi Duncan,

Owner building 9 units...The building authority allows it or is that they are all on one block??

Hi Big Ears,

There was a couple of awkward questions when I lodged the DA but no one has since mentioned it and I know the DA is progressing thru Council as they've asked for some additional information on a few points.

 

[Bushy]

Hi Dunc ,
Can you explain what sort of licenses are needed and what is required to to become an owner builder.Thanks in advance.
Regards Bushy

 

[APerry]

Noddy,

Unless you already have one, you will need a town planning permit. The subdivision is not usually done until you start building.

You will have to pay a draftsman or architect to draw up the plans, probably a town planning consultant to take it through planning stage and then a surveyor to do the subdivision. How much all of this costs depends on the consultants you hire.

Regards
Alistair

 

[duncan_m]

Hi Dunc ,
Can you explain what sort of licenses are needed and what is required to to become an owner builder.Thanks in advance.
Regards Bushy

I'm not aware of any 'licence' as such the specific council area I'm operating in.. but I'm a newbie to this, so there may well be stumbling blocks for me around the corner. I'm still working through the Development Application with the council.