Land currently used for drainage detention

Discussion in 'Property Management' started by Loverenting, 22nd Nov, 2016.

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  1. Loverenting

    Loverenting Well-Known Member

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    I came across this in land for sale:

    "...The land is registered however it is currently used as a drainage detention basin. There is a bond lodged with council to convert the block to a building block when adjoining subdivisions are through".

    What would be your thoughts for the questions below:
    - Will this block end up having a drainage easement under it?
    - Does the value of the land decrease significantly as it is used for drainage detention, e.g. much higher site costs to get it ready for building later on?

    Thanks.
     
    Last edited: 22nd Nov, 2016
  2. Cactus

    Cactus Well-Known Member

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    No the block wont require a drainage easment under it. It is already titled, so any easements will be noted on the title.

    As part of development you have to detain to predevelopment flows until the outfall drainage is delivered. This must be coming with the neighbouring development.

    The problem with buying a retention basin though is it will be lower than the land surrounding it, or it wont be retaining anything. Therefore there must be a noticeable dam or similar that has been created and will require either level 1 filling or a basement style of construction to remedy the level differences post the detention no longer being required.

    The developer and council should be able to provide further information on the post detention requirements. Alternatively the bond may become available to you to cover these costs...

    I think you need to do some more DD though to establish wether or not this is the right block for you. I'd be expecting a significant discount to neighbouring blocks...
     
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  3. wombat777

    wombat777 Well-Known Member

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    Of course careful due diligence is required. Certainly check out what easements will exist and what the allowed building envelope is. Also check how much natural runoff is likely to come from neighbouring properties.

    As part of the sale, you will likely need to compensate the current owner for the bond ( similar process had to occur when I bought my block "second-hand" to compensate the previous owner for the landscaping bond ).

    Check that the amount in the bond is sufficient to cover excavation / preparation costs to convert the site back to a regular building block.
     
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  4. Loverenting

    Loverenting Well-Known Member

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    Thanks Cactus. The asking price is discounted by some 15% to my estimation.
     
  5. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Also consider what is being contained in the drainage detention. In some areas where there is acid sulfate soils developers will put their peat into it as it can't be exposed to air until it can be removed.
    Generally it's not that bad but you need to know that there is a risk of the land being contaminated.
     
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  6. Scott No Mates

    Scott No Mates Well-Known Member

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    If it is going to be a filled site you will be bearing much greater costs for the engineering and footing construction eg bored piers, screw piles etc.

    Have a chat with a geotech engineer and structural engineer for the likely effects and additional charges
     
  7. Loverenting

    Loverenting Well-Known Member

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    Thanks all for your thoughts. These make it clear the discount there is not for no reason.
     
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  8. Cactus

    Cactus Well-Known Member

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    Not necessarily.. if it's controlled fill compacted in 200mm layers achieving 90% density approved under level 1 supervision I.e Level 1 fill then a geotech can re classify the soil test and you can build waffle or raft slab with depended edge beams. No piling required. This is how most estates are developed. Infact sometimes it's safer buying in fill than cut. Atleast you know what your getting.