Adelaide splitter blocks

Discussion in 'Development' started by Erica, 18th Dec, 2015.

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  1. s_andy

    s_andy Active Member

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    Thanks, its good to know that you've used the 'subdivide and sell the dirt' strategy before and had success. Have you made money every time? I'm hoping to replicate it in my own small way if possible!
     
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  2. D.T.

    D.T. Specialist Property Manager Business Member

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    Best way to sell the dirt is use a builder to list it as a H&L package. No fees for you this way.
     
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  3. s_andy

    s_andy Active Member

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    Ageed. Seems to be the best way to save a few k.
     
  4. jim1964

    jim1964 1941

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    Yes,everytime.
     
  5. Erica

    Erica Well-Known Member

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    I always get my surveyor to have a look at any block I am interested in offering on!

    Some things I have come across via my surveyor:
    - incorrectly advertised boundary lengths/ overall area
    - easements
    - lack of services (sewer, water, power, phone, gas) where the new allotment is going
     
    Last edited: 7th Jan, 2016
  6. Erica

    Erica Well-Known Member

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    Hi DT- was nice to finally meet you at the meet up.

    I didn't have any direct dealing with the private certifier I used on my last project, my contact at Weeks and Macklin did it all on my behalf, it cost me $3k for their 'preliminary services agreement' which included: soil testing, design of dwelling, engineered plans, private certification fee, council fees. Not sure how much each item cost was, if separated...?

    Weeks and Macklin took 6 weeks to get the soil testing done and prepared final engineered plans.
    Private certification took 2 weeks once he had the plans in hand.
     
    Last edited: 7th Jan, 2016
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  7. Erica

    Erica Well-Known Member

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    I totally agree
     
  8. s_andy

    s_andy Active Member

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    @Erica: Did things move quickly once you went with the residential code route? I'm looking at a similar development where I would probably need to use that option to get around council.
     
  9. Erica

    Erica Well-Known Member

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    Hi s_andy, sooooo much quicker than dealing with council, see my above post to DT.

    I think council granted full development consent only a few weeks after receiving the privatively certified plans, (my memory crap, it was quick anyhow)
     
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  10. s_andy

    s_andy Active Member

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    @Erica: that's great to hear. How much do you think the subdivision would have cost you if you just went with Weeks and Macklin and the private certifier from the start?
     
  11. Erica

    Erica Well-Known Member

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    -Private certification via residential code cost me an extra $3k (see above 'prelim services agreement' with W&M.)

    -But on my last project council rejected my application in the first place, my original application for subdivision was without private cert- just concept drawings (only cost $300).

    -So, cost a bit more to go priv cert route, but it saved my project from being a complete bust- which would have been a massive financial failure.

    -I would have saved myself a couple of months holding costs had I just gone strait to private certification, and not bothered dealing directly with the pains-in-the-but at Council.
     
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  12. Erica

    Erica Well-Known Member

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  13. s_andy

    s_andy Active Member

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    Erica, thanks for the info. If you went with W&M from the start, would you have also have saved on fees paid to your surveyor? I assume W&M would have used their own surveyor and maybe it would have been cheaper since possibly included in their package.

    Also, what was the size of the land that you managed to get under the res code approval?
     
    Last edited: 9th Jan, 2016
  14. Erica

    Erica Well-Known Member

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    @s_andy
    I used my own surveyor: Simon Klitscher, Adelaide Complete Surveys.
    I don't know if W&M's would be cheaper.

    700m sq block in Marion Council zone R12 - which I subdivided off a 299m sq lot.
     
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  15. s_andy

    s_andy Active Member

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  16. jim1964

    jim1964 1941

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    Yes, this saves you commission if selling through an agent, it also reduces your pool of prospective buyers,who may not want to use the designated builder you sign up with.
     
  17. s_andy

    s_andy Active Member

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    Good point. Although if the sales rep from the building co is salaried vs an agent working on commission, they probably wont apply all the pressure to try and get you to accept a lower price. Maybe better to sell the place yourself?
     
    Last edited: 10th Jan, 2016
  18. DaveM

    DaveM Well-Known Member

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    I have seen the same block advertised with 4-5 different builders
     
  19. MTR

    MTR Well-Known Member

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    Hi Erica
    Thanks for posting this, very interesting.

    You are heading in the right direction, though in saying this I think this project may be too lean, it only takes one thing to go wrong and I don't need to tell you what that means.

    I know from experience that all my projects/developments to date have always gone above estimated costs but there was still 20% profit on completion.

    You will find something suitable but its a matter of continuing to search for the right property and as mentioned look at other areas.

    Keep searching and networking, something will pop when you keep working it.

    All Best

    Marisa:)
     
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  20. Erica

    Erica Well-Known Member

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    Let me clarify some things about the Residential Code and Private Certification- this is really important: you can only use this method if your proposed allotment
    1. has it's own street frontage
    2. meets the minimum requirements for allotment size as per councils development plan zoning
    3. meets the min frontage width, again as per the Council's development plan/ zone.

    Private Certification isn't a way to bypass council completely. Have a good read of the fact sheet/check list on the link I put in above, it will tell you, in what circumstances you can use the Res Cod.

    I got such a small 299m sq on my last subdivision because the Zone R12 allows it (min for semi0detached lots is only 270m sq as per the Marion Councils development plan).