Get Subdivision permit B4 construction & pay more in rates & land tax or wait until completion &save

Hiya

So unless anyone has any counter reason to my proposal I'm thinking:

4 lot / 4 townhouse subdivision & build.
My planner is suggesting to get subdivision permit done at same time as planning permit for my project. (as its quicker & cheaper in the long run - perhaps a couple of thousand dollars)
All going well, will get permits etc sorted this year, and build next year completing B4 end of 2018.

If I get subdivision permit now - council & state revenue office will re value and jack up rates and fees - more than double - I envisage it would cost me 5-6k possibly 10k more with SRO (vic) pushing my combined properties into a higher bracket.
Thus I'm thinking I should wait and get the subdivision permit when construction is nearing completion towards end next year.
All going to plan - I plan to hold all properties and not sell any.

Anything I'm not considering on why I should get subdivision permit done 1st.....

 

Splitting thin hairs here!

I would get subdivision sorted as early as possible!

Paperwork is nightmare with subdivision process!

 

Subdivided property will have a higher value than undivided 4 lot property on one title. Arguably much harder to sell 4lot single title so valuation reflects that. So if you plan a refinance etc on completion to pull any equity etc it may assist to just do it. After all thats why you did it.

 

I've established that its best to go ahead and get subdivision permit now.
Apparently once I have permit - I have up to 5 years before I register it, so until its registered - council / SRO won't split up the blocks and charge me extra winner winner chicken dinner!!

 

Good to know! I am in a similar situation!

 

Make sure you discuss this with your surveyor. In vic, when you register your plan the surveyor provides a plan called 'abstract of field records', it needs to be dated within 2 years of registering. If you take longer then 2 years the surveyor needs to revisit the site to confirm all the marks and fences are still there and the same, you may be charged extra for this.

Also, if another surveyor doing a sub nearby had a different title adoption then your plan, your title adoption (position) may need to change. Purposefully delaying registeration can cause issues from a surveing perspective. And if for some reason you miss the 5 year registration deadline, you have to start again.

If you let your surveyor know you are delaying registration, they should be able to schedule the fieldwork appropriately so minimal extra costs to you. And they can prepare and lodge a plan that will inform other surveyors of your title adoption so you dont have to risk waiting 5 years and find another surveyor has fixed a differing title adoption then yours.

 

Disclaimer- i should also state that this intermediary plan (called an RE Plan) doesnt have as much legal weight as the plan associated with a subdivision. The RE plan will inform other surveyors of your title adoptions but does not 'fix' them. The only way to truly fix your title adoption is to lodge and register your sub.

 

Much Thanks

Very interesting, will take it all on board

Cheers

 

I'm going through a subdivision too. Water coordinator has lodged application to Sydney Water and I just received water rates for each lot! We haven't even started works on separate water and sewer yet.

Good to know to have the permit there and register to land titles at another date!

 

Thanks for all the info. Going through a similar situation. Im at very low LVR's so dont need the vals/equity. Was thinking it might be beneficial to minimise outgoings (rates, land tax)

 

Hi. I'm just a humble newbie to investing and developing.
I am in the process of putting a second dwelling on one lot clause 55 (VIC). As part of this we are doing a plan of subdivision but I am considering never actually dividing the two properties. They are both cash-flow properties that I will keep forever. Dividing them will increase their on-paper value and the council tax that I have to pay.
Sounds similar to your situation.
Is there any point in you splitting them if you plan to keep them and enjoy their rental yield?
(I'm sure that I'm asking a dumb question here)

 

No it's a great question.
And valid as I do plan and hope to hold all of them long term,

I guess I just want a little bit of liquidity should I need to sell one at semi short notice.

These ideas options are what I will have to throw around with my accountant