How much to subdivide 1 into 2 in Melbourne?

Discussion in 'What to buy' started by Des, 18th Oct, 2020.

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  1. Des

    Des Well-Known Member

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    Hi,
    There's a house on 600m2 corner block and has 250m2 in the backyard. The house opposite was the same and subdivided already. Wondering what someone should estimate for subdivision costs?
    Thanks!
     
  2. Bunbury

    Bunbury Well-Known Member

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    I finalised one this year and it was:

    ~ <3k for surveying
    ~ 2k for lodgement etc.
     
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  3. Rich2011

    Rich2011 Well-Known Member

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    Bargain :D
     
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  4. Des

    Des Well-Known Member

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    Seems cheap, good for you.
    Reading others posts it seems connecting sewers etc can be the expensive bit, was that the case for you?
    Thanks for your help.
     
  5. Bunbury

    Bunbury Well-Known Member

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    No problem. The water connection was also about 4k. This will increase the further you are from the connection point.

    Yeah, I've heard some horror stories about the costs in QLD.
     
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  6. Gforce

    Gforce Active Member

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    Hi Bunbury. Newbie here. Including 4k water connection, was this the total cost for subdiv? A town planning website reckons 40k minimum for any subdivision. Does that price make sense? Thanks. G
     
  7. Rich2011

    Rich2011 Well-Known Member

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    In QLD you'll be up for:

    Town planning/surveying
    Council fees
    Infrastructure fees
    Water connection including water meter
    Sewerage connection
    Power
    Storm water
    Phone connection
    Probably a driveway

    They say to allow 70-80k in QLD per lot which does not include fencing or retaining walls.
     
    Last edited: 20th Oct, 2020
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  8. Brendon

    Brendon Well-Known Member

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    @Bunbury is leaving a lot of expenses off their list.
    $40k is probably a good ballpark figure but can easily be more.
     
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  9. Bunbury

    Bunbury Well-Known Member

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    I think you may be confusing subdivision costs with development costs. When doing due diligence it is critical to have a clear idea of the costs and to itemise these appropriately rather than using a silo budget which can be a recipe for disaster and leave you very exposed. Development costs are payable regardless of whether the property is subdivided. The OP was:
    Yes, these costs are invariably inevitable but most of these expenses are either hard or soft development expenses. On a 2 lot subdivision in Victoria the subdivision costs should not be that high.

    Contribution fees (Infrastructure fee) as well council DA fees will be negligible on a 2 lot subdivision in Victoria. The OP will find this information on the council's website. Again, these are development rather than subdivision expenses and will be required if @Des intends to subdivide the development or not.

    The telephone connection is a minute expense and has nothing to do with subdivision. Likewise fencing should be included in the build quote and retaining walls are usually a construction expense.

    The crossover should be included in your building contract. There will most likely be a negligible asset protection bond that is usually refundable once the council sends someone to assess the crossover and determines that no damage to council assets has occurred.

    Having a good idea of the sewerage and water costs and site challenges is part of the requisite due diligence that should be undertaken before site acquisition. Consequently this should be a factor in the price you are willing to pay for the site as extraordinary water expenses are going to be painful and best to avoid.

    I'd suggest @Des that you touch base with an architect who will aid in outlining the development process and costs in a thorough and itemised way. This will help differentiate between construction/development expenses and subdivision expenses.
     
    Last edited: 19th Oct, 2020
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  10. Brendon

    Brendon Well-Known Member

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    I’ve taken @Des question as “how much will it cost to seperate the 250sqm of land from the existing house to end up with a vacant block.
    Therefore including all costs related to making this happen.
     
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  11. Bunbury

    Bunbury Well-Known Member

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    Depends on where you are located, the development size, site challenges, and number of lots. An architect/town planner will be able to give you specific advice. If you include DA expenses it would be a fairly safe estimate for 2 lots (in metropolitan Melbourne). I'd seek advice.
     
  12. Bunbury

    Bunbury Well-Known Member

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    I see. That cuts out a swathe of costs that some include in their 'subdivision' estimating. All of those hard costs I referred to above vanish apart from the water costs. Determining those is like trying to determine the length of a piece of string without seeing the string.

    Not being up for engineering and associated costs and the cost of the plans would save plenty. Nonetheless unless the site has specific challenges it shouldn't cost 40k.

    A land surveyor, town planner and architect/designer would be able to advise.
     
    Last edited: 19th Oct, 2020
  13. Brendon

    Brendon Well-Known Member

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    My experience says
    Surveyor $3k
    Conveyancer $2k
    Council fees $2k
    Draftsman/townplanner $5k (most likely going to have to submit house plans to prove the block is usable under 300sqm)
    Crossover $4k
    Stormwater $10k (could be anything pending site)
    Sewer $3k
    NBN $1k
    Water $3k (inc contribution)
    Powerpit $5k
    Fencing $2k

    That’s off the top of my head but it can get around $40k pretty easily
     
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  14. Rich2011

    Rich2011 Well-Known Member

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    No infrastructure fee in VIC?
     
  15. Bunbury

    Bunbury Well-Known Member

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    The infrastructure contributions fee in the 2 councils I've done this in charged about $1,200 for a two lot permit.
     
  16. Brendon

    Brendon Well-Known Member

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    There may sometimes be an open space contribution? But I’m not too sure of the details of when that’s required etc.
     
  17. LindemannFoxx

    LindemannFoxx New Member

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    Sorry to kick up an old thread but am in a similar situation. Are those costs taken out of the home loan or from the deposit? Sorry if it’s a silly question, just trying to navigate my way around this all.