Implications of subdivision of land on land tax

Hello,

I bought a freestanding house as an investment property in NSW and plan to knock it down, subdivide the land and build two separate title terrace houses on the land.

Say the total land value of the original lot was $700 000. Now that it's evenly subdivided, does the land value of each lot become $350 000? Or is there another metric by which the land is assessed?

Thank you,
Lara

 

2 blocks combined are generally worth more than 1. 2 owners?

 

Great to see real life examples 1 + 1 = 3

 

The current property is owned in my name and both duplexes will be owned in my name.
How can I figure out what the new land value/UCV (and therefore land tax) will be for each duplex once I've finished?

 

Currently it's a 300m2 block and the land value is $774000. Each duplex will be on 150m2 of land. It's the only IP I own.

 

Employ a valuer.

 

Thanks for your help Terryw and wylie

 

Any rules of thumb on how to get a rough estimate? 300m2 = x land value, 1/2 x 300m2 = y land value?

 

You could use Wylie's example to create a forumlar, but a good estimate may be 20 to 30% more.

 

One strategy to consider is NOT physically subdividing until the build is (very near) complete. There may be no merits of triggering a higher val. This defers the reval concern perhaps past a year of land tax. Many people do this then get finance reval when all is complete as well and consider refinance options for equity etc... Depends if you are selling or not.

 

Hi,
Found this old forum on subdivision and may be someone can help with my question?
We have a corner block with old house that we rent at the moment. Got conditionally approved plans for the two townhouses a month ago. Wanted to sell part of the land to our son (first home buyer).
Does someone know if we can split the titles on the land and create two separate titles while retaining the building? Can we have separate titles before construction of the townhouses is started?
Want to sell it next financial year and later start building of both townhouses together with our son.
Someone told we that need development Planning Permit amended and something about Section 173 Agreement but I am now sure how to do it, is it possible at all?
Any advise?
Thanks

 

Afaik the council won't give separate titles for land before building cause they won't meet min requirement for separate blocks.
Otherwise anyone could divide and sell a 700m2 block.
You have to build first, then apply for strata titles.

You should be asking a local town planner or surveyor btw.

 

It can be possible sometimes with some councils. Probably best to give the council a call in the first instance and find out and then contact a town planner to confirm and implement.

 

Thanks, Terry, will call to council

 

I know its an old post, but isn't more analogous to say 2 / 2 = 1.5

Or maybe not now that I'm looking at it.

 

6-3 x 2
Answer is .... 6 or 0 ?

Answer is zero NOT 6. Why? PEMDAS..

In cases like these, we follow the order of operations. The order in which operations should be done is abbreviated as PEMDAS:

1. Parentheses
2. Exponents
3. Multiplication and Division (from left to right)
4. Addition and Subtraction (from left to right)

So in the formula .....3 x 2 = 6 THEN 6-6 = 0