Recommended min land size for IP

Hi all,

I'm looking for my first IP with development potential. One of the important consideration is how big the land should be. I heard about the general rule of thumb that each subdivided land should be at least 300m2 which also means I should target property with land size of 600m2+ for subdivision potential.

Of course it depends on the land shape as well, but assume I only consider rectangle or nearly rectangle here for simplicity.

I was wondering if that should always be the case. For example, is 500-550m2 considered OK?

I know very little about subdivision so any advice/idea would be highly appreciated.

Thanks

 

Minimum land sizes vary based on the location and it can come down to the individual street.

I once saw a new townhouse in Sunshine with a footprint of less than 80 square metres. The street I live in in the outer east has a minimum land size of 500 sqm but other streets nearby go down to 300 sqm. My parents rural property near Ballarat has a minimum subdivision size of 10 acres.

You probably need to talk to the town planner at the local council of the locations you're considering.

 

My advice to beginners is to not buy anything with subdivision potential until you know a lot more about it generally, and also specific to the site you are purchasing.

Otherwise you're just asking to make the mistake of buying something that isn't suitable, or overpriced for what you're getting.

 

Each council has its own rules

 

ReaInvestor so,

what Paul said is the most important, each council has its own Town Planning, these offices create the plans for the zoning of land,
you can do different things to different land based on the zoning, the planning office has to approve your builds, sub divs, essentially anything that is majorly changed falls under a stamp of approval or compliance to the planning office.

the land size is one of the least important things when looking at sub div.

 

I think what OP is asking is whether there is a general overarching rule of thumb for land sizes on investment properties- not what's strictly permissible.

The answer is that there isn't a rule of thumb. If you found a cheap 250m2 block in a golden location, there's no reason to go "shame it's not 300m2". It is totally dependent on the price, location and market.

 

Age of the area and property too.

Some older suburbs have huge lots and setbacks and then there are all the new suburbs which are lucky the eaves dont overlap. Older lots make a attractive buy for later development potential but now command a premium. That said some want a tight lot to avoid yard maintenance.

Council are under the pump from State Govt to make smaller and smaller lots and cram the density to the limit

 

The other thing to consider is street frontage - I've only just started understanding this myself.

Often you can do more with 500m2 with a street frontage of 20m2 than you can with 1,000m2 with a frontage of 15m2.

 

Why would you start with a subdivision first up?

Maybe cut your teeth on a new estate first...too many idiots doing their dough on subdivies...to many variable and very long time frames......

 

Going about it the wrong way. Most will choose an area or two they are interested to purchase/develop in, then find out about the specific town planning within the area and become a little bit of an expert with the rules. Seeking a town planner with fast track the whole process 100 times.

For a first IP to try and subdivide a block or develop is a high risk strategy to start with and wont be a good idea for 99% of newbies.