subdivide without pain

[elwyn.d]

Hi Guys......
Please help. Looking at 9 year old 3b small but good home at the front of a large block. Should't be too hard to move the garage, install a drive way and put another t'house or unit at the back. Have a couple of ips but have never attempted anything like this before. I know I would have to check with council. But what are the steps and what would be a 'ball park' figure to get this all done. I figure a 2 bed unit and lock up gar.

Thanks Elwyn.D
" 50% of something, is better than 100% of nothing"

 

[fredo]

Elwyn your first step should be to get hold of the section 32
Work out roughly what size you will need for the rear land and visit your local council

Some areas of melb have a minimium of 500 sqm subdivision
Knox has 400 sqm

Having determined the project is able to be performed you need to consider the ownership of the property

Is it a ppor or are you going to form a family trust, are you registeredfor GST do you intend to be an owner builder

I did a project in Parkdale victoria. It was our PPOR and we had decided to relocate so decided to subdivide, build sell rear sell front, big mistake selling both they have both doubled in 4.5.years

Go and see a good accountant after you have done some leg work and developed a broad brush plan and cash flow

Good luck Fredo

 

[see_change]

Frist step is to check with councils with their regulations over size /dimensions etc.

One option to consider is live in front house for over one year while you do subdivision and build at the back. Once this is finished you can move to the new property and sell the existing PPOR. Becuase this is you PPOR , no CGT .

The new house becomes your new PPOR so is also CGT free when / if you come to sell it. While cash flow is obviously the aim of many , being able to gain some tax free capital gain comes in handy.

I'm not an accountant so obviously check that this is still the case.

Not sure on what the dual occ regulations outside of my local area, but in Ku-ring-gai you can put two residences on blocks that you couldn't otherwise subdivide. Once you have your dual occ , you can then subdivide. It used to be that you could only subdivide once you had completed the building, but now you can get the subdivision approved subject to various conditions eg building the building that has been approved.

It's easier to do subdivisions on the high side of a street , so you don't have to worry about access to drainage etc.

Costs will vary dramatically from place to place.

With our previous subdivision we spent about $6 k for all the surveyors / paper work ( I think) .

Current block we've spent 3K on a site analysis , $1800 on a tree plan and coming up for $1200 on a bush fire analysis. This is just to find out if we can do it and what we can do , But we're on a 3000 m2 battleaxe block which has a steep slope that is in a bush fire "buffer zone". Not the easiest task but we paid minimal, if any premium for the size of the land because no one considered it subdividable.


see change

 

[elwyn.d]

Thanks guys.
I cant use it as my PPOR. I should have mentioned that there is a long termtenant in the house at the moment. I would not be heartless but would in fact take into account the uphevil in their lives. The block (same size ) next door has 4 units on it already. My interest lies with the fact that a freeway and ring road are being built about 1 k away and the vacent land behind this property is prime for a new estate.
Will follow up on basics to start with and let you know how I go.
Thanks Elwyn.D

 

[ruk]

up here in the sticks you just go to the local surveyer and they know all the council requirements and even submit the application to the council.
they will tell you if it's possible or not.

 

[see_change]

Ruk

According to council regulations our current block is not subdividable , but then again neither was our last one , and we got that one through.

Although councils have their rules , even kuringgai ( who have a reputation of being one of the hardest to deal with ) will bend the rules if what your asking is reasonable. With our current block we will need to present a very thorough case in order to get it through , and we may need to go to the land and environment court if the council knock it back.

One similar block to ours was knocked back by the council, and then passed by the land and environment court on appeal. Given that precedent , we don't anticipate the council will reject it on those grounds ( which related to having access of less than the required 6 meters for two battleaxe blocks ) but we do have 11 neighbours and are in the middle of " Bluegum high forrest " which is about the most environmentally sensitive in the area along with the other things I mentioned.

Our case to the council needs to be water tight so they have no grounds to knock it back, and given it's outside the guidlines we won't know for sure until it's approved.

see change