Buying PPOR with intention to subdivide in future

Hi Guys and gals,

I'm looking at a PPOR which is a large 6 bedroom house on 2300m2 in the middle of a standard suburban suburb.

There doesn't appear to be a premium on the large land size, only 70k or so more than a smaller but renoed house on a typical for the area 650-700m2 block.

Is there a good basic guide can read to subdividing and what to look for in a block?

We are basically looking to purchase a PPOR and in my mind I'm thinking I may as well buy something with inherent value that will be able to be developed in 5 - 10 years for a minimal extra amount.

Thanks,
Dan

 

Does the block fall to the road? Corner block?

 

I think it does fall to the road, not a corner block but its pretty massive. Looks to my uneducated eye like you could fit about 6 townhouses at the rear of the block and still have a massive front yard and reasonable back yard.

Maybe I'm wrong though, not sure. Apparently it was last sold for 685k in June 2015

 

Development wise, there is only value in what the demographic will buy. Need to make sure whatever you can fit on your lot, the demographic in the area will want to buy, leaving you with a worthwhile profit at the end. I've seen many ppl buy large lots, even DA approved lots which weren't profitable because no one was willing to pay for the end product.

 

Great point thanks, something to keep in mind.

This area is unusual I think in that there were a bunch of rural lifestyle blocks in the center of the suburb when the subdivisions started 15 years ago, these have now been completely surrounded by small lots and subdivisions, average block size is 700m2 or so, with all new land being developed now around the 500 - 600m2 size with heaps of dual occ housing going in in the newest areas of the suburb. I believe in 5 - 10 years the suburb will be completely built out with new land releases getting limited and smaller. There are already a bunch of 3 - 4 bed townhouses squished into a few areas in the suburb, but I have absolutely 0 experience subsidising.

Are there any good resources to start out with that give the basic sort of things to look out for?

 

Sounds like it could be a good medium to longer term play, as well as enjoying your ppor. Different folks have their own ways about going about how to determine the subdividing ability of a block.

Every time I was interested in a block that could be subdivided I always engaged the consultation of a town planner to have a look at that block and give me preliminary feedback before I purchased it. Things I'd be interested in would be minimum lot sizes, any easements, services in the area and how far away from your block, any significant overlays etc. Wanting to get a rough idea of what costings might be to subdivide the lot and all the different configurations.

Cheers.

 

There very well maybe covenant's on the land that says no colorbond fences and no secondary dwellings due to rural allotment, check the s88.

 

Every property is different, every council is different and every zoning is different. You need to talk to a town planner to find out what is possible for any particular property.

Willy

 

Does the zoning of the block allow subdivision? it may still be a really low density and not able to be subdivided

 

Thanks guys. If I do find that it has covenants, or inability to be subdivided, how likely are things like that to change in a 5-10 year time frame?

 

That’s crystal ball stuff.

Your prediction is as good as anyone else’s.

 

Not really, I'm just asking for general knowledge. In peoples experiences, have they seen covenants and things preventing subdivision go by the wayside? Does it depend on who you know at council or a council's attitude to subdivision?

 

Well it is crystal ball stuff because it depends on the whims of council, if there expansion and they need infill development they could rezone...

 

It depends on what the zoning allows and whether the block fits the requirements. If you are looking at a particular area, get the zoning maps for that area, find out the minimum lot size, minimum frontage required etc and then look for properties that have the attributes required to allow subdivision.

Willy

 

Input of a local town planner is essential imho. It's easy enough to know the frontage and minimum lot size yourself, but there are a hundred other factors which could affect the viability of a subdivision.

 

Covenants can expire and sometimes they can be worked around.
However zoning/density is pretty set in stone and won't be looked at until the next review of the area's town planning scheme. Generally when zoning is reviewed in an area it's about every 5-10 years and they will concentrate density around shopping centres, train stations etc so if this area is far away from those it may never be increased in density and may stay a low zoning to keep housing diversity in the area.