Plans, sub division DA process which order

Discussion in 'Development' started by db444, 5th Oct, 2015.

Join Australia's most dynamic and respected property investment community
  1. db444

    db444 Member

    Joined:
    25th Jun, 2015
    Posts:
    12
    Location:
    WA
    Hi,

    Could forum members provide advice on first steps of a sub division?

    I am interested in what I can do with an existing house on R30 and can price building costs and research what I can sell in the area. What I want to do is find options under the zone classification and then price /evaluate options and who is best to assist. Would the following be correct

    1 say draw up 2 building plans to comply with r codes -designer or architect
    2. Evaluate cost and selling prices - me
    3. Have land surveyed and da submitted - me and surveyor

    Q
    is above the normal route?
    Designers/architects will be aware of planning requirements yes?
    Is there a need for a town planner
    What are the typical cost for the above steps (people costs not da

    Anything I'm missing or advice welcome

    For info just a small 850m block r30 in WA

    Thanks
     
  2. Tenex

    Tenex Well-Known Member

    Joined:
    14th Aug, 2015
    Posts:
    570
    Location:
    Sydney
    The order you need to do things is your numbers first as there are many hidden costs during and after the DA

    Dont touch anything until you have done numbers. You will also find WA is a very volatile market at present

    The second thing you need to do is your finance. This is a very big part of the project that is often neglected. Make sure you can source finance for everything and can service the loan.

    After you have done those two things you are ready to even think about planning and DA.

    I dont know a lot about how things are done there but in nsw you can go on local government website find the architect who has designed and gotten approval for similar properties and can get them take care of most things. If you need a planner they will tell you but usually they can do it.

    Honestly unless if you have done your numbers and finance and know exactly what you are doing do not touch it.
     
  3. HD_ACE

    HD_ACE Game-Changer

    Joined:
    18th Jun, 2015
    Posts:
    491
    Location:
    Perth
    Hi Db
    If you give a bit more info then we can give you some solid advice.
    - Which suburb/Council
    - Is the zoning R30 or dual coded ie R20/30 (very important for your options)
    - How will it be financed?
    You have a few options for subdivision. Either subdivide first and the use the created equity to finance the builds (Long approach) or go built strata and build first then subdivide. Also decide what kind of subdivision, Green title or survey strata. This depends on your block, if there will be any omman property, setbacks from powerlines etc, no of crossovers etc.

    You can either get a da for the build through your council and the go through wapc for the subdivision. Or go straight to Wapc for the subdivision.

    First up youll want to get a survey done so that you can see what can be done. Also a soil report to determin site costs. Your then going to want to have a fair idea of the values of your end product so you can determin your profit and if it is worth going ahead.

    You are going to need to know building costs, site costs, subdivision costs, purchase price and costs, planning costs, a contingency and ofcourse end values to come up with an accurate feasibility and profit expectation

    Hope this helps.
     
    Ichigo and thatbum like this.
  4. db444

    db444 Member

    Joined:
    25th Jun, 2015
    Posts:
    12
    Location:
    WA
    Guys, thanks for your replies, much appreciated. To expand more using your questions as prompts.

    Finance will be on 75% purchase, building I will fund on the first unit and use sale to build second.

    I have worked costs for possible subdivions and getting close to calculating my offer price. However if I get the property I would want to review best or possible options. Eg I may not subdivide the property 50/50 as it may prove cheaper to alter modify the existing installation and put a smaller property behind therefore I don’t want to survey/ modify titles till I come up with design(s). My base case is two new properties 50/50 but if offer is accepted it is worth spending more time on tuning the best solution which is where my question originated. By the way if just 2 properties would go for green title. Its R30 and Rockingham Council WA


    So possible way forward (amended with your comments)

    1. Soil test

    2. Options and pricing of building types (who by and how much ?)

    3. Survey and DA

    4. Build/modify first unit


    Does this sound right for the explained situation?


    Hope my explanation is clear enough, I don’t want to type too much in case the points are not relevant
     
  5. HD_ACE

    HD_ACE Game-Changer

    Joined:
    18th Jun, 2015
    Posts:
    491
    Location:
    Perth
    Its good to have options so if retain and build and 2x new works and makes money then thats good. You really need to already have an idea of your target market, build specs and size of house/s so that you know what sort of cost to factor in. So in other words before you buy the place,

    know what your doing for how much over what time frame to make what money.
    Dont offer until you know this and are confident with the figures. And offer accordingly. Then you have a survey done to have your plans drawn or da submitted. Price or tender your plans to some builders and go from thereo
     
  6. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    Wait, you're not sure if you want to retain and subdivide, or do a new duplex build?