Subdivision Approval process

[beachsnow]

I am looking to do a development in scarborough but ive been told by my broker that commonwealth bank or ANZ now wont release funds for a development until subdivision approval has been granted.

I’ve heard approvals can take from 6 - 9mths (?) which would blow the profits due to land holding costs.

Does anyone have any comments on this or ways/suggesstions to get around it?

 

[BKR]

I thought my subdiv would take about 6 mths but that was a bad mistake. With my wife having a spine op, GFC just about stopping my income and life in general going sideways I didn't have the $ to finish so I left it for many months. Having 1/2 done was useless so I ran up the c/cards to finish hoping for a quick sale which didn't happen. I do have a contract on the land now that settles in a week ::fingers crossed:: but not in my wildest dreams did I figure it would end up 17 mths. It crushed the profits but I still make a profit luckily.
I would say to ask as many ppl as possible about it and get your $ + some in place, then go for it.

 

[Gools]

BKR, I think you missed the question.

Beachsnow, I can't comment for Perth but approval for a basic division in Adelaide don't take too long at all. We have had one back in a week but most others are only a couple of weeks. A major development might be different and will certainly change in time frame depending on how far you push the 'boudnaries' of the Development Plan and if the decision needs to go before a council meeting or is just a tick of a box and a rubber stamp. I'm not sure using peoples past experience will be a correct guide, it might be best to run it past a member of the planning department at the council.

Goold

 

[beachsnow]

cheers, im looking at doing a triplex development and its been done thousands of times over in this suburb so im not breaking any new barriers.

Ive just heard some horror stories of approval times being long and with the banks waiting on approval its almost not worth it!!

 

[devo76]

I bought my last ip late last year with intent to build on the back. Started dd in October. House deposit paid November. Additional house payment made dec to draw plans. Da to be submitted next week with an expected 3 month approval time if it goes smooth. So yeah it can drag on. Also as in many cases, the bank will only lend for the construction of the house. Development cost is from other sources( equity). But I still think I am going ok compared to some.

 

[Aaron Sice]

Scarborough falls under Stirling so you will need to send everything to them as a Development Application as well as WAPC for the subdivision.

What does the bank want - DA approval, WAPC approval, or both?

approval times are AWFUL at present - WAPC minimum 90 days - sometimes the DA is even longer than that.

deferrals suck.

 

[RumpledElf]

Ours was 5 months for approval but we lodged the app in November and the development board didn't meet in December or January. We let the process drag out ourselves simply due to it being expensive and it taking time to save up for each step. Our DA expires quite soon and the bank is currently the one holding up the paperwork but they "have the form" and "are doing something with it", whatever that means. I'll probably get a valuer turn up unannounced tomorrow morning.

We're now trying to build a house on the block, which apparently takes 9-10 months, most of which is waiting for various approvals, soil tests, yada yada.

 

[Fourex]

Depends on the type of subdivision you are putting to council.

Might be worth talking to your local surveyor or town planner to get a time frame from your local council.

My quick guess would be:

Code accessible - 3 months
Impact preferred - 3 - 6 months
Impact not preferred 6 - 12 months

That is working on no major hassles with stormwater drainage and sewer requirements.

Cheers,

Fourex.

 

[whitedog]

subdivision blues

Has anyone had any experience with banks not wanting to release titles for amalgamation and strata titling ? We have a project ready to go - WAPC approved and Council DA. All we need are the titles so that the amalgamation and then lodgement of the strata plan can occur. There is a loan on each of the two properties ( side by side) and RAMS won't even look at th eproposal unless we refinance using one loan and have the properties cross collateralised first. I just can't see why they are insisting on this. It won't reduce their risk at all ? There is no additional finance being requested & the overall valuation will be way higher after the strata titles are on place but RAMS won't consider anything until we refinance first

Any comments appreciated.
Russell

 

[iPlan]

As Fourex said,

you are looking at similar time frames.

the things that vary the timeframe are:
if there are any referral agencies that apply to this development,
Public notification,
Information requests from council. ( if the Council asks for further information. eg. engineering or environmental reports, that could dramatically increase the time frame.


Antonio