Subdivsion is easy?

[PDP]

Thoughts on feasibility?

So I've got a rectangular 615sqm block 10km north of Melbourne CBD that I would like to subdivide, retain the exisiting 2 bedroom dwelling out the front and keep on renting out. Basically chopping the block into a 'L' shape with a common drive way on the right boundary. End goal would be to sell the back block with plans and permits for a profit.

I've purchased the existing block for $400K a year ago and would be looking to sell the back with plans and permits for $200-$220K. The current value of the block as it is $450-$480K.

Is this feasible once I go through the process of appointing an Architect to draft up plans, submitting to council for approval etc. ?

This is my first subdivsion so would love to know your thoughts or past expereince. What pitfalls should I look out for and who should I be engaging?

 

[ulvit]

Is there a market to buy land with plans in your area?
I have seen a block with permits and plans sit for nearly 6 months for sale in SE suburbs of Melb at a pretty decent price for land.

The issue is your market is greatly reduced when there is no house there. If the house was built, you could have new home owners or investors looking.

A developer would want to pick it up cheap to get a profit once built.

maybe consider the costs of building the dwelling too and that would assist not only with your feasibility, but your buyers feasibility too if they were to buy it unbuilt

 

[kum yin lau]

Hi, without paying any $, check out if council will allow you to do this.

Do you have 5m driveway access to the back block?

Then only do you need to investigate if the profit stacks up.

Usually the total value of 2 blocks is much higher than just one.

Good luck,
KY