Joondalup Rezoning

G'day everyone,

Just wondering what people's thoughts were about the Joondalup re-zoning that seems perpetually "coming soon". I've got a couple of properties that i'm waiting on the green light to go ahead and everytime i check the council's website for an update, it's always some time away.

I note the 'current status' (as of today, mid-august 2015), the council is suggesting the Minster will probably give their approval by the end of this year... then the council has to "review existing local planning policies and draft new policies" (these aren't finalised as yet)... and then those have to have public consultation... and THEN those have to be incorporated into the DPS2 so we can apply for subdivision.

I know a few of you have places in the rezoning areas, so, does anyone have any insight into the machinations of council?

What are your thoughts on how long before we see the green light?

 

Probably look to get excited in 24 months.

 

it's been with us since 2010.

still - has been some decent growth since then in a lot of these areas.

 

Me too, we bought four years ago now and it was 18 months away then, the local agents still advertise as "proposed rezoning area". At this rate I will be ready to retire and wont be able to afford to re develop it.

 

Phwoaarrr... Thanks guys.

Yeah, I suspected as much... But hoped I was wrong and it might have been under 12months...

It's all rather deflating really.

Looks like I'll have to continue my search for a development lot a bit closer to the city.

 

Local Housing Strategy


The amendment to the City’s District Planning Scheme No. 2 (Scheme Amendment No 73) to implement recommendations of the Local Housing Strategy will take effect on 12 February 2016 through a notification in the Government Gazette. From this date the City will be able to accept applications for development approval in line with the scheme amendment. Applications for subdivision will need to be made to the Department of Planning. A copy of the changes to District Planning Scheme No.2 in Scheme Amendment No. 73 is available under Related Information.

The recommendations of the Local Housing Strategy not implemented through Scheme Amendment No 73 have been implemented through the Residential Development Local Planning Policy and Height of Non Residential Buildings Local Planning Policy. These policies came into effect on 14 January 2016 following consideration and adoption by Council at its meeting held on 15 December 2015. In conjunction with the adoption of these policies Council also revoked the Height and Scale of Buildings within Residential Areas and Height of Buildings within the Coast Area (Non-Residential Zones) policies.

The Residential Development Local Planning Policy provides development requirements for all residential development, including criteria that is required to be met to develop at higher densities for dual-coded lots. This policy should be reviewed when designing for subdivision or residential development.

 

my neighbours house is now under offer but no idea what the offer is

 

Good stuff. Finally approved.

Im interested in hearing other peoples thoughts - Anyone actually subdividing right now, or are you waiting to see how the market moves over the next 12 months?

We've been temporarily taken out of the game with the recent APRA regulations, so tactics dictate we now get the ducks in a row, cost up a few options and get ready for when we get the cash flow to go ahead.

Im interested to hear others thoughts on what they are doing now in these areas.

Regards

 

Hi Cashpipe, a Westminster gave me the name of the surveyors she uses and they have emailed me a quote, I also called one of the local agents who was quite pessimistic about the prospects of sub dividing. Having said that, the price he nominated for the house makes it not worth NOT subdividing! So, we are tentatively intending to proceed to subdivision/demolition and splitting it straight down the middle. I can see neighbours is now sold, but I don't know the price.

 

I'm working on one in Warwick that's turning 25% and is very straightforward with conservative valuations. Am also getting some amazing build prices. Happy to chat.

Also the folk at Westpac at Warwick seem reasonably optimistic - might be worth having a chat with them.

 

Thank you! I doubt that we would build, I doubt I could get the money for that, in many ways it makes sense to simply subdivide, as we jointly own it, our expectation is that we each take a block and thus separate the asset. I am very pleased we did this, I could not have serviced a full loan on my own but the bank has treated it as one mortgage, therefore it would curtail my ability to lend any more money. I think my friend will sell the block but I think I would keep mine, maybe down the track I could build. The house needs complete refurbishment and I just don't think it is worth spending a cracker on it now the zoning is official.

 

Zoning is official though, as of about a month ago now.

 

Thanks moridog and Aaron. That's is good to hear indeed.

Interesting to note the REA was pessimistic about the rezoning. I guess it's just a job to some agents and maybe they don't get the bigger picture with population growth and the drivers for these rezoning areas? Maybe an out of area agent? Anyway, good to hear the price is right!

Aaron, 25% in Warwick sounds good. I like Warwick and actually missed out on one 2 years ago.

My intention is to subdivide, keep, and rent them out.

 

No, a very local agent, I had a giggle about the conversation really, because, whilst espousing gloom and doom, he returned my phone call within 5 minutes of the email I sent, whilst knowing the subject, just goes on gloomily about how much the retaining works would cost, despite the benefit being great views.

 

That is the intention here as well. With a fair chunk of equity and neutral returns.

 

I hope you've got a deed of partition if you're intending to each take a block, otherwise technically you're selling half your block to him and he's selling half to you and it could trigger a CGT event

 

Thanks Sanj, no idea what that is, but I will look it up, I did email the accountant but have not had a response. Meanwhile, I called the City of Joondalup and it actually has triplex potential, one common driveway, I am thinking, in my ignorance that if one driveway went along one side that may comprise some retaining in itself, given that I don't know what side would be best to put it on, I contacted the surveyors who confirmed it and resubmitted a quote, that would be three blocks of 228 ish but the bonus is you would not build one another out, given they would all face the view, I would really appreciate any input from the community regarding this. I do understand that this would make it a survey strata not green, I guess I am wondering it three are always better than two. A green title of that size would have to conservatively fetch 350? Or more? However a survey strata smaller lot would still likely fetch 280-300? I mean, they aren't making any more of it.
Comments most welcome, the backstory is that I have inherited about 70k, can't really lend much more money, there is just me, the kids, and my three mortgages and I really want to use this money in the very best way I can.
My Mum and Dad both died in the past 8 months and they worked really hard to leave us something more than they had. Thanks.

 

Pm sent.

 

Moridog, Michael Yardney and his crew talk a lot about setting up a deed of partition before you get into a partnership so, as Sanj says, saves you paying CGT(and GST?). IIRC, basically, once the subdivision is complete the joint venture dissolves and you're left with one part, they are left with the other, without triggering a CGT/stamp duty event. If you check out Michael Yardneys blog, or the Real Estate Talk podcasts you'll find a better explanation than mine.

As for 3 vs 2, I've always heard that more is always better when developing. I'm not sure how well this translates when talking about selling land only, because people have difficulty in seeing a real house on that small piece of land. Me included! But if you have a house on it, someone can walk in the door, no imagination required, and the emotional connection can be made.

As these are new rezoning, I think it's a little harder to judge comparable sales for land sales at the moment, but I'd like to think a block would sell for 300k, based on a 250k build and have a 550k end product (loosely speaking)... But thats only my guess, and I'm not 'the market'.

 

Found this short video informative,

https://www.facebook.com/video.php?v=996736023730518