Very first subdivision

[simbi99]

I have just recently obtained finance to purchase a property for my very first subdivision, now i know a bit but certainly not everything when it comes to purchasing a property for subdivision and development so i have some questions.

1) When purchasing the proper which is subject to council approval, are you able to get this approval before actually purchasing the property?
I am looking at subdividing in the Frankston city council area in particular Seaford (VIC) I've done my research on the councils view of developments and it seems as though they are welcoming developers with welcome arms in terms of approval to develop is there anything to suggest otherwise?

Thanks for your time

 

[ulvit]

When you mention subject to council approval? Cause that is simply a disclaimer agents use as an out if you are not successful with a town planning application.
So be cautious here. The best way to see if it is feasible is recent developments with similar circumstances in close proximity but there is still other factors to consider. Or talk to a town planner.

To quickly answer your actual question, town planning takes time. You need to get plans that meet councils requirements, submit the application, advertise to neighbours before the council takes their sweet *** time to decide. All of which requires you to have the actual title to the property.

 

[simbi99]

Yeah i understand all that about the STCA

My main question which you answered was can you be sure a property is developable before you commit to the purchase and i guess the answer is no you cannot be 100% which is why the research into the market and surrounding are is so important?

 

[oc1]

All of which requires you to have the actual title to the property.

Not quite. I recently bought a property and obtained the town planning permit while the property was under contract. Still haven't settled on it.

 

[simbi99]

So i guess i put this to some more experienced developers, how do you guys do it? Whats the best way? i mean sure you can do all the research you want but if the council decides to lick you after you've settled on the property and your stuck with a huge loan you're in a pretty rough spot right?

 

[oc1]

So i guess i put this to some more experienced developers, how do you guys do it? Whats the best way? i mean sure you can do all the research you want but if the council decides to lick you after you've settled on the property and your stuck with a huge loan you're in a pretty rough spot right?

Then you're off to VCAT

Just like anything, do your research properly and have a good team around you. Stack the odds in your favour. Town Planning isn't 100% guaranteed but you can get close to it.

Oscar

 

[simbi99]

I have heard some absolute nightmares out of VTAC haha!

But yeah i guess you're right.

What are some other things a first time developer might be looking out for or in your experience has thrown you off most? especially starting out?

 

[thatbum]

Just like anything, do your research properly and have a good team around you. Stack the odds in your favour. Town Planning isn't 100% guaranteed but you can get close to it.

Yes you can practically get close to 100% chance once you do your research well enough.

Or some plans are essentially 100% but a more ambitious one might be more like 70% - sometimes you can prepare for a range of potential development options.

 

[simbi99]

Awesome thanks for the help

On another side note, when subdividing do people tend to demolish the existing property more often than not? Or just revamp it and build a second dwelling next to it, if it isn't i. Too bad of a condition?

 

[GaryK]

Then you're off to VCAT

Just like anything, do your research properly and have a good team around you. Stack the odds in your favour. Town Planning isn't 100% guaranteed but you can get close to it.

Oscar

Could you put a detailed list up of what is considered a 'proper research'?

 

[techie]

Simbi, talk to a local town planner. They'll have insight on the council and can advise.

 

[oc1]

Could you put a detailed list up of what is considered a 'proper research'?

Start with the thread below:

http://somersoft.com/forums/showthread.php?t=88866

 

[Tranquilo]

simbi99
Sorry to jump in here.
I'm also wondering about subdivision in the future.
Is it better to buy with no easements on the property like sewer easement?

 

[simbi99]

That's all good the more info the better.

So I finally got the final figures for my loan aproval, obviously it's not much as I'm fairly young still (20) and my income isn't the greatest.

I was able to obtain a preaproval loan of $370,000 with a purchase price of $350,000.

I currently already own a property which is being rented out and negatively geared which is why I was able to obtain the second loan.

As I've figured I won't be able to do the whole process with just $350,000 so I am in the market to purchase now and develop in a couple years when I finish uni more than likely.
I've been searching through the sites for properties but are there any recommendations for a $350,000 loan?