Development Contributions Charges- Reservoir VIC

Discussion in 'The Buying & Selling Process' started by James Baker, 3rd Jun, 2019.

Join Australia's most dynamic and respected property investment community
  1. James Baker

    James Baker Well-Known Member

    Joined:
    21st Mar, 2017
    Posts:
    224
    Location:
    Melbourne
    Hi there

    Came across that the property has a Development Contributions plan overlay, i am interested in developing in Reservoir VIC

    Its near the Ruthven station and i would be developing it into 3 X 2BR Townhouses of about 110 SQM each

    How do I calculate the charges that would be applicable ?

    Cheers
     
  2. KateAshmor

    KateAshmor Victorian Conveyancing Lawyer Business Member

    Joined:
    25th Jun, 2015
    Posts:
    364
    Location:
    Melbourne
    Perhaps ring the Council and ask them, as they determine the charge under their planning scheme.
     
  3. Bunbury

    Bunbury Well-Known Member

    Joined:
    16th May, 2017
    Posts:
    114
    Location:
    Melbourne
    You will, in all likelihood, be under the threshold for a development contribution charge. You should confer with your architect and/or town planner.
     
  4. lixas4

    lixas4 Well-Known Member

    Joined:
    24th Jan, 2016
    Posts:
    313
    Location:
    Melbourne
    @Tufan Chakir @James Cavill- both are planners in vic and will have a good understanding of this overlay. My understanding of this overlay is fairly limited, but below are my two bobs worth.

    The schedule to the Darebin Development Plan Overlay is attached. There is only 1 schedule for Darebin locality so this is the one that relates to the property you are referring to. This schedule is used to calculate the contribution charges.

    You will note there is a long list of CCD's (charge areas), these provide specific unit cost charges for certain parts of the locality. You will need to go to the map at the very bottom of the document to work out which CCD relates to the property you are looking at.

    The charges for development contribution plans are normally based on a per dwelling or area calculation, or a combo of both. Based on reading this schedule it is based on a per dwelling basis, but I would get that confirmed by an expert (Council or one of the planners listed above). If it is confirmed the charge is based on a per dwelling basis, then the amounts charged by Council will be fairly small.

    At the bottom of the schedule it lists exempt developments. It looks like a 3 lotter will be included in the contributions charge.
     

    Attached Files:

    James Cavill and Tufan Chakir like this.