Hello everyone, we am looking at commencing a subdivision project in areas where R40 has been approved. Currently looking around the Balga (6061) area however, unsure if this will be a wise decision moving forward and would greatly appreciate advice from anyone especially those in the field, on what and where to consider before under taking such a project. Thank you.
Why R40? It just seems to be an arbitrary thing to pick that specific zoning. If you're looking for developing info, there's nearly countless threads on the subject on here already, especially for WA - do a bit of a search and have a read. Otherwise, I would suggest the starting point to be a very strong feasibility calculation and not worry about the Rcode at all - which is just a means to an end.
Thank you so much for your response, my approach to this is from an mature prospective and knew there will be so much to learn moving forward. I have had a few conversation with few individuals who are in the space of property development however, there were no other topics besides R40 zoning. I was of the belief there would be much more and in my search for further information I came across this platform where I had hoped sufficient guidance would be provided. I will continue to do my research before committing to one way or another and would of course appreciate further guidance to view other options in the market space, in particular in WA.
Do you have a pretty solid understanding of the Rcodes and how they affect subdivision possibilities? That's another important early step to grasp when starting down the property development journey in WA imo.
Also search for "development" finds eg Nollamara Development Advice WA - Would this development have made a profit? Spend time reading on here. Balga is probably not the best place to make money at the moment.
Yes and no, I was recently involved in a subdivision project however, my involvement was very minimal and was merely to gage some understanding of the process. I now know I have a lot to learn and believe I have gained new respect for the development space and keen to learn as much as possible.
thank you, this is useful information, particularly with current market and the uncertainty of what the future brings, in particular for WA housing market. I strongly believe, knowledge is extremely valuable hence why I have come to this platform to see personal and professional advice.
The most important part is learning how to do a feasibility. You need to know how to do that before you choose a suburb as you will soon find that around 80% of development sites in Perth offer inadequate profit to compensate for the risk. So before even thinking about suburbs you need to know 1. what entity will the purchase be in? personal name, company or trust. 2. what are the tax/legal implications of developing in those entities? GST, Land Tax, CGT or income/company tax etc 3. How does the zoning work (rcodes) 4. How much does it cost to do subdivision works - water, sewer, power, govt fees, strata fees 5. How much does it cost to construct? 6. Assessing end values. Beware of suburbs that already have a lot of the stock you are thinking of building as competition when it comes to selling end product can decrease your price. 7. Holding costs. Allow for 12-18mths of interest. Those things will help you do a feasibility. Then you learn how to pick a good site 1. Does the local Council Town Planning Scheme have items which ovveride the Rcodes 2. Using Dial Before You Dig to find out where sewer and power is as it will impact the useability of site 3. How does the zoning/rcodes work for that site.
@Westminster , brilliant outline! In addition to the above, I'd also pay attention to: Public open space contribution Verge, retention or planting of trees Site works / retaining with falls 1m< Design guidelines / policies in addition to the scheme and rcodes.
Speaking of Balga, does anyone have the standard triplex single storey site plans for the R40 ~680sqm blocks in Balga.
No No No Negative Notevenmaybe If you took an experienced developer and forced him or her at gunpoint to undertake a standard 3 lot balga subdivision atm, short of using that gun to rob the neighbours, they'd have slim chance of making a worthwhile profit
Would have to say the same.... don't touch Balga, too much of the same stock has driven prices south. Probably easiest way to lose money
Can you attach the one for 14 keeble way balga? It might give him some insight on how to build a triplex on a tight site .
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