Consolidating two properties

Hi PC,

I would just like some input on the best way I could consolidate two properties next to each other;

Here's a bit of background

Property X is a corner block, property Y is the next block immediately after the corner block. I intend to build 4 townhouses on both block X and Y combined. Two of the townhouses will sit across property X and Y (facing east), where as the remaining two townhouses will sit ONLY on the corner block X, and ONLY on block Y (facing north).

Property X have 3 owners on the title, all at different percentage ownerships.
Property Y have the SAME 3 owners on the title, however all at a different percentage ownership from property X.

Could anybody provide on the best way I can consolidate both properties ready for subdivision?

Any thoughts on the matter will be greatly appreciated!

Thanks

 

Get some legal advice on the stamp duty implications and some tax advice on GST, CGT/Income tax consequences. There may be small amounts of duty and tax if ownership is realigned. Partitioning the new titles may be a way around this but would be tricky.

Alternatively you might want to consider selling to another entity such as a trustee or a company which will complete the project.

 

Will you be subdividing once you've consolidated to give each property it's own title?

What is the upside of the consolidation? There only appears to be 4 t/h, is it achievable without consolidating?

Is there a development upside that hasn't been considered ie can you build 5 or 6 across the two parcels? What does the zoning allow? Have you spoken with a town planner?

 

Do you need to build over the boundary? If not you could share services and access via easements and then you might not need to amalgamate the blocks before subdivision. Would save a heap of tax issues.

 

Are you based in vic? If so, you would be exempt from public open space contribution if you did two seperate two lot subdivisions. But if you consolidate both the titles into one title, then did a 4 lot subdivision, then you would no longer be exempt, and would owe council 5% of your site value. Not a small figure so definitely worth talking to your planner/surveyor about how you should set this up.

 

Thank you all for your insight on the matter!

Most definitely. I have accurately punched numbers if ownerships are aligned.

Selling to another entity is not an option. We purchased these properties off market at an amazing price and choose to maximise our profits across the board.

Yes I will be subdividing once I have consolidated both properties.

According to the local council, they 'prefer' to consolidate two blocks or more prior to subdivision aligning with future plans and permits. Keyword, 'prefer' hence why I thought there may be a way around this.

Over the current boundary? Yes we do as 2 of the townhouses will face east (therefore crossing the boundary), and both blocks are rectangular in shape facing north.

Yes I am based in Victoria. I can honestly say I have not looked into public open space contribution, however due to my plans I will not longer be exempt.

 

Hi @private_number, its definitely something you should look into. Example, if you are in an area where it is 5% of site value (5% is the default unless the planning scheme states another %, which could be higher -some parts of mornington are closer to 15%!). If site value is 1.4m, and the contribution % is 5% then you owe council 70k, which will have to be paid during the sub process. Not a small figure, and by the sounds of it, could be avoided with some redesign or planning. You could possibly do a boundary re-alignment sub now to move the current common boundary to where you want, then do the 2 seperate two lot subs following. Worth asking your surveyor/planner to investigate

 

@private_number - have a read of @MTR's thread on her 4 townhouse development.