How to subdivide a 900m2 residential block? Question by a newbie.

Hello Everyone,

I am new to actively working with real estate so kindly pardon if I come out too ignorant. I am a total newbie here.

I own a 4 br 2 bath house on a full block of land (900m2 ) in Lilydale. It is a well sought after suburb.

I want to subdivide my land and sell it, put the current house on rent and use the money from the sale to fund a purchase of a horse property where I want to establish an agistment.

In terms of loan, I owe the bank about 75-80% of the current market price of the house, so I think bank should be okay to let me subdivide it. The house is built exactly in the center on the block, so if I subdivide the block I'll probably get around 300m2 of sub-block which I should be able to sell.

My questions about this are -
1. How long does this whole process of subdivision take before I can sell it?
2. How much does it cost?
3. Will the council approve a permit for a 300m2 block? I had checked with them earlier, they said that currently they are allowing maximum 2 subdivisions on the block this size in my suburb.
4. Roughly how much do I need to spend before I know for sure that the council will say yes or no for the subdivision?
5. What is the right process to go about sub dividing your land? Are there any step by step guidelines available somewhere?

I'd really appreciate all the help and info.

Cheers!
Abhi

 

Hi @Abhi
Now I live in Perth and I m a newbie developer as well, but from my experience the process normally starts with a survey and application, here I budgeted 12k. Now if your house is center, I would imagine you need clear access to the back, so "common area" such as drive way, if you dont have that because of the house, it may be more difficult to develop the back. After the council have review the application, its on the the service providers to see if they will let you, they can cost a bit to, best to have plenty of time for phone calls.


A good tip is to check if other people around you are doing the same thing, and dont be afraid to think about employing someone if you really get stuck.

Regards,
Matt

 

Hi Matt,

Thanks so much for the advise. You right, the access to he back yard is an issue because the house is in the center of the property. I am consulting a Town Planner who is going to give me feaso for free. Let's see what he comes up with. I also called a "Sell your backyard" type of company and looking at my property she said that it has a significant landscaping overlay. Secondly they way the house sits on it, the council will not allow subdividing it. Even if they do, its not worth it because I won't be making a lot of money on that. I think if I hear a similar thing from the town planner, I may have to let go of the idea of subdividing it altogether

Thanks for the suggestions though.

Cheers!
Abhi

 

Thats no worries,
As I said Im learning myself.
Another option would be demo the house and build three new, but this is quite a lot more risk, and it depends on how much value you hold on the house (eg if your living there). I feel you should beable to do something as you have quite a bit of land. Your best bet is to definitely follow through with those meetings with council and see what they say, feel free to update at a later stage with any results

Regards,
Matt

 

Hi Abhi,

I live around the Lilydale area and do quite a bit of work for a developer in the area, depending where in Lilydale it is I would double and triple check that you can only build 2 on the block (yours and 1 more).
How long have you owned the property for? I have seen up to 6 townhouses built on blocks that size in various locations around you. It obviously depends on zoning but if your house is centre of the block it is likely you are best off developing the block into units/townhouses.

Just a thought but definitely worth double checking.

 

Hi Brandon,

Thanks for the advise mate. Yes I checked with the council. You are right, the Town planner said that there is no problem with 3 townhouses and depending on the design they may approve 4 too. Mine is a neighborhood residential zone and has a significant amount of landscaping overlay, hence may not go up to 6.

Cheers

 

I know Lilydale and very much in demand, had significant growth too, I am developing in nearby Croydon, have a post on this, it may interest you.

Its dependent on Council, should take about six months if you get a good run

I believe this draftee in Mooroolbark, suburb next door....is excellent, they generally give some advice for free from my experience.

Yellow Pages® | Your Local Australian Business Directory

 

Hi @MTR ,

Yes Lilydale has grown very well in past 2 years since I bought this property. I love Croydon as well, great suburb and its growing rapidly too.
Thanks for the contact details of the Draftee, its definitely going to help me tons. And thanks for creating a thread on your development in Croydon, tons of great info, very helpful for newbies like me, I am watching it now and looking forward to your updates

Cheers!