Development site assessment checklist

Hi all,

I am planning on doing a 3 lot build/subdivision at the end of the year so just trying to get my knowledge up to minimise losing my shirt.

Below is a work in progress checklist on choosing a site suitable for development. It is for initial feasibility only, something I can take to property inspections and fill in before/after when doing research about the property. I am based in Melbourne.

Would love to hear from anyone/everyone on what extra things should be considered.


Title

Torrens or General Law

Are title dimensions based on Survey

Confirm dimensions/area compared to RE agents published dimensions/area

Confirm occupation distances match title dimensions, or do survey within cooling off period if can

Covenants

Easements

Other restrictions?


Legal / Conveyancing

What should I be looking out for/checking prior to purchase?

Caveats?



Planning

Zone

Overlays

Public Open Space contribution -5% or Clause 52.01

Developer/infrastructure Contributions?? Anyone know where to find any other contributions that might be applicable?

Flooding - not always in overlay - check with Melb water?/council

Other developments in street

Strategic Planning

- Change of use/zoning/overlays - where to go to see if any proposed planning changes in pipeline?

- Local planning on Development - Clause 20's

- Township plans

- Councils general comments on development (phone conversation to strategic/statutory depts)



Property

Trees on property - significant/remnant

Street Trees/services in way of proposed crossover – what are council’s views towards replacing street trees in another position?

Possible points of discharge

Grade of block and direction

Services - sewer/water/drainage/gas/telstra/NBN/electricity

- Telstra/Fibre - Clause 66.01-1 - causing long delays in getting subdivision compliance documentation - better if pit out front of property

- Electricity Pit - Suppliers do not like overhead supply. If in an area that has overhead supply, and a new pit may help abutting property, then supplier may install pit for free, also if in a fire danger area. Otherwise up for cost of new pit 3k+ - have people found this to be correct? anyone know anymore about this?

- Sewer/drainage - check connection downhill from proposed dwellings, what if not? Pump costs/design to enable uphill connection?


Abutting Property’s

Trees near boundary - significant/remnant – what is the general rule about building close to boundary that has a tree on abutting property? Can’t build within foliage spread area?

Neighbours dwelling position

Neighbours SPOS position and size

- overlooking (clause 55.04-6) 9m rule

- overshadowing (clause 55.04-5) 75% rule for 5 hours - does this mean need to look out for small SPOS area of abutting property near our boundary if proposing to build along this boundary?

Neighbouring habitable window positions, proposed dwellings must

- ensure daylight (clause 55.04-3)

- are neighbours habitable windows north facing? - extra setbacks (clause 55.04-4)

Building Setbacks of neighbour

- Front (clause 55.03-1)

- Side (clause 55.04)



All of Clause 55 seems good to know, but for the purposes of initial feasibility I think maybe only the clauses listed above? What do you guys think?

 

note this

 

That's a great list @lixas4 - I didn't see it until now (duh)

It's a little Melbourne centric but has valid points that can be translated to all states

 

Pretty good list.

If a serious amount of earthworks is involved, I would add geotechnical information by looking up geotechnical maps of your area. Also look at how deep the the water table is too.

I was doing some work for a developer and they thought they had a pretty good deal, but the earthworks bill was absolutely astronomical because of all the piling required as well as the fact that the basement was below water table. I believe they only just broke even on that development.

 

GST margin scheme
Income tax (CGT discount unlikely)
Valuation might have a discount in one line prior to subdivision. Could be 20% of gross realisable value.

 

It's a good list but even before these steps you need to ensure the project stacks up financially otherwise bank funding will get difficult. You can do a high level financial feasibility by doing market research on comparable developments then evaluating if there is enough profit in it for you to take the above steps.

 

I'd also add:

• ASRIS acid sulphate soil
• Soil testing
• Soil saturation/permeability
• Requirements for tree protection both on the lot and adjoining the lot
• Temporary site access requirements
• Siltation controls

 

It pays to hire a good team including town planner, surveyor, geotechnical engineer, accountant, mortgage broker to assess your project prior to purchase. Most of the above will be covered by them and they will most likely find problems that you might not be able to foresee yourself.

 

Scott

Assuming you are from NSW and that is why you are aware of this issue? Or have you had it occur in melbourne?

Would you pay for a test prior to submitting an offer? (not sure what consultant you would call this?

 

@LukeR - just part of the back catalogue.

A geotech should be able to assist.