3 Lot subdivision - POI

Discussion in 'Development' started by AnasWestie, 18th Mar, 2022.

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  1. AnasWestie

    AnasWestie Well-Known Member

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    Hi all,

    Has anyone managed to complete 3 lot subdivision and pay POS (public open space 10% worth value of the land)
    if you end up just subdividing and selling the land, will you still have to pay it?

    Subdivision in Perth is no longer stacking up if we are looking at 3 lots subdivision cost is nearing 65-75k plus if you need to chop 10% to the council (e.g 900sqm x 10% = 90sqm meaning each lot will reduce to 270sqm rather than 300sqm or pay about 40k to the council?)

    What is your experience with this? any advice?
     
  2. Shogun

    Shogun Well-Known Member

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    A quick Google to me that looks to be for large area subdivisions with infrastructure etc. As well as roads it must have parks etc
     
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  3. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    It would be rare for it to be on 3 lot subdivision, it is allowed on a 4 lot but not always enforced, 5 or more much more common.
    Some council (Gosnells) enforce it even on the smallest of subdivisions.
    Often there is not an option to give up the land and the only choice is to pay the levy.
    And yes it's on just land or other types of subdivisiions.
     
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  4. justlearning

    justlearning Member

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    A family member successfully challenged the pos requirement through SAT for a city of gosnells 2 lot subdivision. Rationale was the pos was planned for on the original subdivision.
     
  5. AnasWestie

    AnasWestie Well-Known Member

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    Hi can you give me a little more details if you don't mind
     
  6. Angad Singh

    Angad Singh Well-Known Member

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    HI @AnasWestie

    A POS condition imposed on a 3 lot subdivision should definitely not be accepted at face value.

    Different Councils have different requirements, but if there is no provision in the scheme for POS contributions, then I would definitely have it reviewed by a professional town planner. Every case needs to be considered on its merits and may require a different argument (POS has already been ceded, or there is already sufficient POS in the locality, request for POS is unjustified and has no planning basis, etc). I use Bianca Sandri from Urbanista and have no hesitation recommending her and her team.

    Remember, even though this condition is requested by the Council, it will actually only show up in your conditional subdivision approval which is granted by the WAPC.

    Generally, Councils just whack this condition on and request the full 10%, and expect the WAPC to make a decision as to whether POS is appropriate, and if so at what rate.

    In many instances, as soon as you ask the question and ask for the planning basis of a request for POS, they will remove the request altogether :)

    We recently had to go to SAT because Stirling was asking a full 10%, and after a little back and forth they eventually revised that number to around 3% (saving us approx ~$70k).

    Here is a link to the DCP 2.3 which is the POS policy (although it definitely needs updating!)
    Development control policy 2.3 - Public open space in residential areas

    Good luck:)

    Best,
    Angad
     
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  7. sash

    sash Well-Known Member

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    Why are you doing this in Gosnells? More profit in just keeping house and selling it in a couple of years. No GST...no headaches....and profit is almost the same
     
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  8. AnasWestie

    AnasWestie Well-Known Member

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    Thank you for taking time to write and explain this Angad
     
  9. AnasWestie

    AnasWestie Well-Known Member

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    Mate just a question, for R20 zoning, can you still subdivide 700sqm (350sqm each lot) that is not a corner lot? Is the 450sqm minmum only for a true battle axe that does have seperate driveways?

    If yes, would the 5% rule still apply for say 690sqm that is slightly short of the minmum (say one lot 350sqm and another 335sqm??)

    Thank you Angad
     
  10. Angad Singh

    Angad Singh Well-Known Member

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    My pleasure, Anas. I am glad it was helpful.
    With regards to subdivision, you are required to comply with BOTH the minimum AND average lot size requirements. (make sure you understand how each of these are calculated, please ask if you are confused)
    For R20, this means:
    1) the overall block (including all common property allocation) must equal 450m2 per proposed lot;
    AND;
    2) each proposed lot must be at least 350m2.

    Under the DCP 2.2 policy, there are two types of concessions relating to lot size
    1) variations to minimum AND average lot size <5%
    and
    2) variations to average lot size great than 5%

    Pay special attention to the wording (noting that the latter does not contemplate minimums).

    For standard subdivisions, you can only vary the lot size of one of the proposed lots by up to 5%,, provided that it does not vary the average by more than 5%.

    WHEN (and only when) certain criteria are met, you may seek a variation to the average lot size greater than 5%, but you can not include truncations, and you can not vary the minimum lot size in these instances.

    So:
    1) traditional R20 lots (front to back) require 900m2 to be subdivisible, and each prosed lot must be 350m2 +. If you apply the average lot size variation of 5%, you could subdivide a block that is only 845m2. The battle-axe requirement is really neither here nor there, and the only difference is whether the access leg is common property or exclusive use for the rear lot.
    2) Corner blocks fall into the special cases where you can vary average lot sizes by more than 5%. In these cases, you can NOT apply any variation to the minimum. So no, 690m2 is NOT enough for 2 lots in a corner lot subdivision.

    Sorry to bore you with the details, but it is very important you are clear on the provisions, as mistakes can cost hundreds of thousands of dollars:S

    Hope this helps,
    Angad
     
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  11. AnasWestie

    AnasWestie Well-Known Member

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    Hi Angad

    You are an absolute legend brother! I really appreciate the detailed reply.
    I was under the impression that front to back lot R20 of 700sqm can be subdivided to 350sqm each lot minmum (350sqm x 2 = 700sqm) now I understand that R20 requires minmum 900sqm for two lot subdivision but you can make one lot 350sqm while another 550sqm
    So 700sqm cannot be subdivided under R20 zoining at all.
     
  12. Angad Singh

    Angad Singh Well-Known Member

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    No worries man:) Hopefully, catch you at the next meetup.
    Also, I just realized a typo above, you need 855m2 (not 845m2). (0.95x900=855).
    Please do not try to buy an 845m2 R20 block and try to subdivide it!:p:p
     
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  13. MTR

    MTR Well-Known Member

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    Side issue…..City of Gosnells a shocker

    10% of land value is their contribution fee

    Need to think real hard about developing in this suburb
     
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  14. AnasWestie

    AnasWestie Well-Known Member

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    Agree, although not an issue for retain and subdivide 2 lot subdivision but for 3 lots you will have to battle with the council
     
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  15. KRB

    KRB Active Member

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    For such 3 or more lot subdivision and development what are the step/costs required?

    If there any threads on the same please suggest. Thanks.
     
  16. gach2

    gach2 Well-Known Member

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    Many factors
    Flat vacant land with no building and services available
    start at 25k for the first lot and around 15k additional lots
    other costs can ad up (site works/contributions/demo/retaining dwelling services etc)

    Water corp contribution is around 7500 per new lot
    Western Power is around $500 for application and $2333 per dome
    If strata would allow around at least 3-4k for power switchboard and plumbing
    10K+ for all the paperwork (applications/lodgement/surveying)

    Started two in March and while most of the work is completed still waiting on council clearances
    Hopefully done by the end of the year but im not sure at this stage (might end up being early next year). In hind site a few logistical tweaks and personal delays might have reduced a month