Diary: tricky subdivision

Discussion in 'Development' started by Peter P, 26th Oct, 2016.

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  1. Peter P

    Peter P Well-Known Member

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    17th Apr, 2016
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    Location:
    NSW
    Hi all,

    Thought I'd diarise our subdivision process. So much information out there and its getting confusing.

    What we got:
    - 1 title 2 dwellings (2B house at front, 3B at back). I drew a 1:200 scale diagram in attachment.
    - 1412m2 (15.24m frontage by 92.984 depth, rectangular block)
    - current driveway exists which is 3.0m
    - previous owner lodged DA on subdivision, but has lapsed, is now expired.

    Our aim:
    Subdivide land and build a gf behind each dwelling.

    Today, met with a town planner from Bankstown Council, NSW.

    What we learned:
    - battle axe subdividision needs at least 3.5m driveway, this is Australian standard (ours is currently 3.0m with front house built against driveway).
    - There is a clause 4.6 that allows flexibility if an existing dwelling has been built against the driveway, but needs to be assessed when DA is lodged.
    - there is no min frontage requirement to build a granny flat.
    - min land size to build gf is 450m2
    - after subdivision, battleaxe land size required to build gf cannot include driveway area (I.e. Land size (of battle axe) - land size (driveway) > 450m2)
    - Need to obtain a survey report with proprosed plan of subdivision

    Next step:
    - submit retrieval of previous DA that lapsed. This can potentially help with our DA if previous council allowed 3.0m driveway.
    - See a surveyor who has experience with this council and subdivision process. Can anyone recommend any?

    Other notes:
    - cannot build townhouses bc min frontage is 20m
    - can KD front house and build a duplex, but land cannot be subdivided afterwards as the frontage would now be less than 15m
    - retrieval of any previous DA takes 21 days


    14774472849001478715521.jpg
     
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  2. Peter P

    Peter P Well-Known Member

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    Location:
    NSW
    Quote from surveyor 1

    Surveying process:
    - pre-DA meeting 350
    - detail survey 1900
    - proposed plan of subdivision 500
    - statement of environmental effects 1800
    - concept plan 800
    - preparation of DA 350
    - plan of subdivision of lot 5000
    - draft section 88B instrument (if required) 650
    - Sydney water section 73 cert. (if required) 250 + syd water coordinator fee 1100
    - subdivision certificate 450
    - electronic lodgement of plans 350 per plan

    Total cost : 13,850 (exl. GST)
    Does not include council and gov. fees and charges

    Anyone know if this seems right?
     
    Last edited: 27th Oct, 2016
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  3. g-dub

    g-dub Well-Known Member

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    AUS
    Numbers look ok. Get 2 more quotes if you're worried.

    Without knowing anything about the property or the market; what about a jv with a neighbour. Then you've got 70m x 30m block which could probably fit 10 or 11 townhouses on it, rather than 2 blocks of land. Just a thought.
     
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  4. Anthony416

    Anthony416 Well-Known Member

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    Sydney
    Yes, numbers seem about right.
    Not sure about the how retrieval can help since they may want to reference to the new LEP and DCP? Probably Clause 4.6 is the go.
     
  5. D.T.

    D.T. Specialist Property Manager Business Member

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    Adelaide and Gold Coast
    Thorough numbers. Following!
     
    Last edited: 5th Nov, 2016
  6. Peter P

    Peter P Well-Known Member

    Joined:
    17th Apr, 2016
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    Location:
    NSW
    Time to update.

    1) Retrieved previous DA (torrens title subdivision) which was lodged by previous owner which has now lapsed and expired. DA was approved in 2008, required S73 certificate.
    2) Chose Rygate Surveyors as our land surveyors. Very professional, transparent, motivated to help and always on top of our situation.
    3) Met with town planner at council accomanied by Rygate to discuss about subdivision with the 3.35m carriageway (national minimum is 3.5m).
    4) Townplanner got back to Rygate and gave the O.K based on previous DA. We do not need to resubmit new DA. This was a verbal approval and he was not able to produce anything in writing. Our surveyor has noted this.
    5) Now engaged with a Sydney water coordinator to obtain S73 certificate. Application fee 1150 (inc GST) this also includes Sydney Water application fees. Water supply 1200 + GST and sewer extension 2400 + GST.

    Legal update:
    Current owned as joint tenants with my wife.
    Looked into entering a deed of partition so I own lot A solely and wife owns Lot B solely after the subdivision. Learned that we should have entered into this when we purchased it (2013). The property has grew 350,000 in value since which would be subject to CGT if we enter deed of partition. That's about 50,000, no thanks. We thought this would outweigh the benefits and have decided to now leave as joint tenants.

    'Til next time
     
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  7. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Perhaps consider severing the JT to that of TIC.

    It may be worth entering the Deed of Partition now as you are only bringing forward the CGT and you could end up with separate ownership for lower stamp duty.
     
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  8. Peter P

    Peter P Well-Known Member

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    Thanks Terry, you're always opening our eyes.

    Is the CGT payable when the transfers take place or when we decide to sell the lots?

    The CGT would be around the 50,000 which we don't have at the moment.

    Could we possibly enter a deed of partition now, and then make the transfers in the future when we are ready to pay the CGT? Is there an expiry date on the deed of partition?
     
  9. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    CGT event would be on the transfer so pyable that year.

    Entering a deed of partition would trigger stamp duty and CGT on signing of the deed.
     
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