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Splitter block Logan Brisbane.

Discussion in 'Development' started by Richard Williams, 12th Sep, 2015.

  1. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    9th Aug, 2015
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    Location:
    Loganholme, Brisbane
    Ok, so I'm fishing for some basic info here, I have no development exp, only renovation exp.

    Have looked at a 1020 m2 block in Logan with the existing house positioned at the front of the block allowing the rear to be cut off to make a separate lot, many others in the street have done the same.

    Can anyone give me a basic idea on the costs for getting the split done including getting services connected, driveway, drainage, surveying etc?

    Should I aim for a 20% return on a basic development like this?

    Existing house is a 3 bed 1 bath, asking $380k. New lot would be worth 200k approx (for a vacant lot) and the existing house would then be valued at around 320k after subdivision. Sale price of the new lot with a new 4/2/2 house might get 420k.

    Any profit there? :cool:
     
  2. RPI

    RPI Property Lawyer, Town Planner Business Member

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    Location:
    Brisbane
    I would allow $70k
    Infrastructure Contributions are $28k alone
    DA App, surveying, plan sealing $12k
    That is without doing any actual work.
     
  3. RetireRich101

    RetireRich101 Well-Known Member

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    Had anyone discussed anywhere in PChat or SomerSoft as to why QLD charges a whopping amount of infra fees and because of this, the development cost is the highest in the country
     
    Hanison likes this.
  4. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    Location:
    Loganholme, Brisbane
    Thanks, I had a rough figure of 60, 28k for infa and 30k to do the rest... Sounds like there would only be a half decent profit if constructing a new house on the new lot...
     
  5. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    Location:
    Loganholme, Brisbane
    What would be the approx time frame from engaging a town planner to having the lot registered and available for sale?
     
  6. Shawn

    Shawn Well-Known Member

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    Location:
    Sydney, NSW, Australia
    Why not split, put a small removable on it, reval with the bank and go on to another one?
     
  7. Elives

    Elives Well-Known Member

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    what do you mean removable?
     
  8. Shawn

    Shawn Well-Known Member

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    Sydney, NSW, Australia
    ej89 likes this.
  9. jsoe000

    jsoe000 Well-Known Member

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    30th Jun, 2015
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    Location:
    NSW
    I see a lot of talks on splitters / reconfig lots in QLD. How easy/hard is it to sell a vacant lot after the split / reconfig? Wouldn't it be easier to sell a ready to move in house + land?
     
  10. Subodh Shirodkar

    Subodh Shirodkar Well-Known Member

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    19th Jun, 2015
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    Location:
    Sydney
    Hi Rico,
    Last time I was there, a month back. I went to the front desk @ logan council. Very helpful staff. couple of members on this forum could guide you with relevant info.
    Good Luck.
     
  11. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    Location:
    Loganholme, Brisbane
    Anything will sell at the right price, suppose its part of the due diligence that your numbers stack up. A lot of the house and land are not in premium locations hence splitting...
     
    jsoe000 and Leo2413 like this.
  12. superace

    superace Member

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    21st Aug, 2015
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    Location:
    Brisbane
    in basic form, it doesn't look like a good enough return. selling off the vacant lot only gives you a 10 % return. you've still got stamp duty, agent comms, services, CGT etc etc. if its your first development or looking to learn then yeah its not too bad because youre learning the ropes at a low buy in price. that being said, remember that if you do the deal, you're more than likely tied down for 4-6 months and not able to do any other deals.

    thats why im a big fan of developements that have an exisiting house like this one and sell off a spare block (as long as there's enough profit in there!). continuing to the build or even a removable house adds more holding costs, time and cashflow required. for example, most councils need you to put down a security deposit when doing a removable house. another $15 - $20k or so sometimes!