SA Christie Downs Subdivision

Hi All,
I've been looking into subdivision as an alternative to renovation as a shorter term strategy. At the moment looking at larger blocks with old house & selling the new blocks of land after demo. Longer term would be great to build new smaller houses but borrowing capacity & finances might be a bit to tight at this stage.

Came across this property at Christie Downs that looks to have subdivision potential. Not quite ready to commit to something just yet but was going to carry out some due dill to see if I would be on the right track.

1 Alban Street Christie Downs SA 5164 - House for Sale #127059514 - realestate.com.au

810m² corner block land with approx. 33m frontage. 24m depth. According to Onkaparinga development plan, minimum block size is 270m² so this one would be borderline 1 into 3 division.
My thoughts and numbers:
- Creating 1 into 2 (2x400m²) blocks might be easier to sell to families wanting to build but this would reduce a fair bit, to almost all profit.

Auction price guide: $237k (calcs off this for now)
Stamp duty and fees approx. 5% = $12k
Subdivision = approx. 25k
Demo = 10k
Cost per block approx. 95k
Looking at a few land sales over the past 12 - 24month would think selling each for 120k would be reasonable.
Taking into consideration holding costs and agents fees could be looking at 60k total profit prior to tax implications. Could market through a builder for H&L packages to reduce costs, but potentially limit market for those wanting to choose own builder.

Other issues:
Land has a gentle slope (maybe 1:25ish) from the main frontage to the back boundary. Guessing may need some drainage & fill works?

Sig. gumtree in front yard. Removal subject to council approval + extra costs?

Wondering everyone's thoughts? Looking back on previous threads I see @James McIntyre & @D.T. have done similar projects?

 

@James Rodda Nice big plot of dirt this one, i have viewed this, and it certainly is tired.It will be interesting what this does sell for, i will be at the auction.

 

how much was it sold for?

which suburbs in SA do you guys look for subdivisions?

 

19 Kevin Street Christie Downs SA 5164 - House for Sale #127015374 - realestate.com.au

can this be subdivided?

 

and this one? side is 3.55m

14 Kenneth Road Morphett Vale SA 5162 - House for Sale #126967302 - realestate.com.au

 

I'd prob add at least 10% to a price guide. Legally in SA, the guide is 10% under the reserve, but who knows what people will bid it up to on the day.

@DaveM had all the rules for this one, worth asking him. Some trees need approval, some aren't removable even with approval. Depends on species or size.

 

There's significant info on the onkaparinga website

 

277K

 

The Development Plan has just gone through a phase of amendments,which will be signed off this year,it can be viewed here.