which is the priority? location, subdivibility or size?

[YvonneVincent]

Hi guys we r contemplating a 2 lot subdivision at the moment but we r confused as to which of the following 3 is the most important, assuming the blocks concerned are all flat and similar front house

Location:
a block in a more favorable pocket of the suburb is probably worth more but is it worth it with the trees and carport/garage removal costs?

Subdivibility
presence of big trees, need for shed/carport/garage removal etc

size: bigger block so potentially 3 lot subdivision but cost of setting up a body corporate?

Another question is are we responsible for paving the 'common driveway' in a 2 lot subdivision(say its a battle axe block)?

thx for the input guys

 

[HD_ACE]

Hi there

None of the above are the most important. The most important is profit $$$$.

If the overall deal as a whole stacks up is what i would be looking at. If theres trees to be removed or the blocks sloped etc , all these costs need to be included in the feasability which will determin the profit margin.

Sometimes you will make more money bying in a less desirable area as its less outlay, but a better location may give you better saleability.

The demographics are another key indicator. No use subdividing into two family homes if your surrounded by appartments and flats. Or two bedroom villas when its a family demographic with 95% 4x2 etc.

Sometimes you can make more money on a duplex block than a triplex. Just depends on everything.

Hope this helps

Cheers

 

[sanj]

Hi there

The most important is profit $$$$.


Cheers

Agreed. You're doing a subdivision, to make money. All other factors affect your feaso but ultimately once that feaso is done go for the one that has the most profit Vs risk/effort.

Re the paving, you dont have to for a battleaxe subdivision if youre retaining the house but remember that if youre selling the front house people do not want a sandy driveway next to their house for an indefinite amt of time. Consider putting in roadbase or something to that effect as a temp measure.

 

[Stacey Survey]

Hi Yvonne,

As the above comments state, the ultimate goal of subdivision is to get the best bang for your buck. Sometimes the most profitable option is not the most obvious, which is why we recommend Property Development Assessments for all our customers who aren't sure of what route to take (or which block to develop!).

Regards,

 

[mattnz]

Priority 1. Can I finance it?
Priority 2. Profit for risk, time and capital invested

 

[YvonneVincent]

Thx for the advices

Will definitely ring around for the following but just want to gather some info first
What is the rough cost for a garage/ carpot to be removed? I suppose it varies with the structure whether its brick or timber?
How about removing trees I know it depends on the size but a general idea of cost is good, in Victoria btw.

Thx again guys

 

[Stacey Survey]

Hi Yvonne,

Demolition will obviously vary on material and time taken. Make sure to have removal of the demolished building included in the costs. Dumping can get expensive! Also if there is asbestos this also gets pricey.

Tree removal comes down to size. Natives will often require an arborist report and involve jumping through more hoops.

All the best with getting some quotes.

Regards,