Hi Everyone, I'm new to this forum and new the development game. I was hoping to get some ideas on a recent purchase I made. The property I've purchased is falls under the Blacktown council and is just under 1050sqm with a 28m front (not corner block). There is currently an old single story dwelling on the property. The block is rectangle with no concerning easements and fairly level. I've bought the property to demolish the existing dwelling and do something with the block. I have a couple of ideas, with some questions, but also wanted to see if there are other ideas out there that would provide a decent return. Here are my ideas: 1. Subdivide through the middle and if it fetch's a good price, demolish the existing building and sell the lots individually. If the ROI on the vacant blocks aren't great, consider building a double storey dwelling on each lot. 2. Demolish the building and build a childcare centre. There are obviously two options with this, either build and lease, or build and operate. Has anyone had any experience with any of these two options? and if so, what are the pro's and con's of each? 3. Subdivide the block with one at side at 600sqm, and the other just under 450sqm. On the smaller block build a double storey residential building, and on the other side build a duplex. I know the minimum lot size is 450sqm, so a couple of questions here: a) would it be possible to have a block slightly less than 450sqm, we're talking about 10sqm less. I've seen a few new residential building in the area that are obviously knockdown rebuilds with are on less than 400sqm blocks, not sure how they've done it. b) I've seen a few threads talking about subdivision of a duplex and I'm really confused about whats possible. I've read somewhere that if each side of the duplex is 60% of minimum lot size, it is possible, but not sure if this is accurate. Has anyone had any experience with this? and if so, can it be done under a torrens or strata title? Appreciate any other ideas that you guys may have. The budget for total construction over the entire block is about $1m. zoning is R2. Thanks!
Rather than opinions havent you estimated the after GST return each option will produce ? Consult a local town planner. They will also be familiar with the approval process needed for a complex site like childcare, duplex, t/houses and to use the land efficiently Our developer toolkit will also assist with basic knowedgle concerning tax issues
Thanks Paul, appreciate the toolkit, will definitely read through it and get a thorough understanding before undertaking the financial analysis. I've only done some rough back of the envelope numbers at the moment as I'm still thinking about what options are out there and what would actually be possible to do. Once I have a few desirable options, I will look at the viability of each and make a decision.
That where TPs are brilliant. They can consider zoning, setbacks, council regs and attitudes and offer some precise ideas knowing their local area and even recent projects in that area. Around 50% of clients who see a TP seem to change their ideas. I had one who wanted to build 4 3&4bed t/houses on 2 lots. They convinced him of the merits of more smaller townhouses which agents sold OTP easily as they all fell under the duty threshold for first buyers. Split the dev over two lots to get resi finance and staged it so finance wasnt commercial. Once stage one sold 100% OTP the lender jumped at stage 2. Overall profit was enhanced 50% and the concern with sales was resolved. He also found some room to haggle with the listing agent as he was selling 8, not 4.
