Buying land with Friend and subdividing for separate land titles.

Hello All,

New to forum and property market.

I and my friend are considering buying a property with 28m x 38m property and subdividing it. Its under blacktown council. I am still determining the feasibility

So wanted some insights from this forum.

1) Our aim is to subdivide as separate plots. Each of us will get 14mx38m ( around 530 sqm). I was told by someone that, we can have duplex constructed but not separate land titles. But I was going through blacktown council website and they mention
a) Min plot size should be 450 sqm (R2: Low Density Residential)
b) Min width : 12m
c) Min depth : 20m

Does this mean we can have separate land titles.?


2) Next is the cost factor. Current site has a old brick house. So I calculated cost to get land suitable for construction as follows

a) Demolish old house : 40k $ ( Brick house of 140 sq m)
b) Subdivide : 50k $
c) Misc / unexpected expense : 20k $

Any thing which I am missing and how much will be stampduty / tax.?



Thanks,
Vishh

 

How attached are you to the friend?

 

we are good friends. Ok to avoid confusion, two families. But why will it be relevant here?

 

Have you looked at what happens when the subdivision is processed? As a general rule, the ownership is carried over to the subdivided lots, so you would each own 50% of both lots, there may be CGT and stamp duty payable to divide them.

Before doing anything I would get legal advice @Terry_w would be the person to speak to.

 

You would have to agree to the build with your friend. If there are cost overruns, time overruns, different opinions on colour scheme, materials, etc Hard enough coordinating your life when you buy and build. Organising two families?

 

True. Thanks. Will check.

 

Yes that's why we are focusing on getting separate landtitles. After that its individual plans and pains.

 

Consider the duty, get and tax implications

 

Don't recommend it.

What do each of you bring to the table?

People have different levels of expectations of each other.
This leads to fallouts.

Best to do it yourself and keep one house and sell the other house (to them or someone else)

 

I have done similar but you need to carefully plan it and you need to be subdivide onto separate titles. I can't speak to the Blacktown council requirements though

When you purchase you both own the lot. When you subdivide you will keep the same ownership entitlement so you will both own 50% of each lot which of course is not what you want. You can then do a Deed of Partition where you give each other 50% of each block so that you end up owning 100% of one block. This "giving" creates a potential stamp duty, GST and CGT event so this is why people are advising you seek advice and think this through carefully. If both blocks are the same size and worth the same amount there should be negatives but you need to be aware and walk through all the issues.

Once you have your titles then you can separately build. You may chose to go with the same designer and builder but keep all contracts separate to minimise issues.

You may find that it is no cheaper to do this than it is to buy 2 blocks of land in the area that have already been subdivided.

 

Thanks a lot .

 

@Vishh So did you end up buying the land/property or not proceeding?

 

Check out a deed of company partition to avoid stamp duty once subdivision is complete, so you can take a block each.

 

whats a deed of company partition??

 

As far as I am aware, Blacktown council allows strata title subdivision for duplex. You want torrens title subdivision. Call the council directly and ask to meet a town planner, tell the town planner exactly what you want. Or talk to a local architect and explain what you are after.

Plus a duplex is built in a single construction project, the slab is poured at the same time and the council may require two two sides to be joined at some spot like a garage or something.

As you said, individual plans, individual pains - I will have to see this to believe it. Not saying its impossible, but I want to see how this can be done, so I can do it too.

He said, she said will get you in a place where sad things happen. Talk to the council or an architect before you go too deep.

 

Hi Vishh, I am waiting for your final decision and if you have any solving idea. I am the same situation now. Thank you