what to do with 800m2 property??

[hoobie1]

hi everyone,
I'm new to this forum, and I have just bought my first IP (very scary!) It's basically a small 60 year old californian bungalow on a 800m2 block. I bought it because I thought i might be able to subdivide it, maybe sell off the land with plans or something. I have no idea where to start.
I can't really afford to do much straight away, as I have to spend a few thousand painting and freshning up the house (in good condition, but hasn't had any work for many years!) to get it ready for renting out, but I would like to start thinking/planning what I might be able to do to add value, pay it off quickly by capitalising on the large block.
Has anyone done a subdivision on a property like this before?
If so, can you please offer advice on what might be the most profitable option (eg: plans for 2 townhouses, plans for 1 townhouse and sell subdivided land, and keep existing house??)
also, who I should speak to first? council? builders? etc.

very grateful for any advice, or stories of your experience.
many, many thanks
Hoobie

 

[andrew_de_a]

Where is it located?

 

[RumpledElf]

Where is it located?

Oh yes, that's the most important.

I have a 1800sqm block with 3 street frontages (approx 18x100m block). Anywhere else it would be a developers dream. Where it is, it just makes it annoying slashing the weeds each year.

 

[hoobie1]

it's in Ballarat.

 

[JohnJC]

Not sure what your council is like, but they are always a good starting point.
They should be able to tell you what you can do with the block.

Goodluck.

JC

 

[hoobie1]

thanks for your advice John. I think I will do that in the near future. For now, i'm busy doing some minor renovations. It's hard work so far, but rewarding to see the improvements. Just had the electrician in yesterday, and started painting today. I hope the new tenants like my paint colour choices.

 

[csc2]

yep, see council, check zoning..talk to a town planner..if hes worth his salt he will be most helpful...

really though you should have had a plan in place before buying the block....thats what investing is all about..planning ahead

best of luck.

 

[Steve Fitz]

I'd first tap into the local knowledge base by contacting your local real estate agent and asking them about sales prices etc for the different options you're considering. That way you can run some feasibilities on development costs with the end sales figure in mind.

That should show you which way would give the greatest return.

 

[Gools]

....and don't forget the GST implications of splitting the block and selling off the new lots.

 

[Player]

yep, see council, check zoning..talk to a town planner..if hes worth his salt he will be most helpful...

really though you should have had a plan in place before buying the block....thats what investing is all about..planning ahead

best of luck.

Agree.

In addition, be wary that much of Ballarat has Heritage Controls and Overlays that may affect what you do there.

Go to planning maps online for Vic:

http://services.land.vic.gov.au/landchannel/jsp/map/PlanningMapsIntro.jsp

Click "I Agree" at the bottom of that webpage and enter your address into the search field and go from there. Get maps and reports free and nore any overlays. Be well armed for when you visit council and before you go also look for precedent of subdivisions or townie development in that locale (within 500 m or closer) and note the adresses and perhaps look up their zoning on that link above also.

It's still a decent chunk of dirt and hopefully you can at least do a rear battlaxe subdivision or rear townhouse or in the future maybe three new ones.

Congratulations on your first IP. Next time research what is the highest and best use BEFORE you buy.

Let us know how you get on with council.