Hi, I'm interested in subdividing a vacant lot into 2 lots in a new housing estate. If anyone has experience in this and would like to shed some light on the challenges and cost associated that would be great. I know its difficult to answer specifically as each council has different regulations but if you could give me a few things to consider that would be great. Thanks,
I haven't chosen a specific lot at this stage. I'm basically gathering information to work out whether it is a viable and worthwhile option. The idea would be to split the lot, build a PPOR to live in for 18 months or so then sell it and build another PPOR on the remaining lot. Feel free to pick this idea apart as I'm open to hearing the pros and cons of this strategy. Thanks
Most new estates have maximised the available lot sizes. Most new estates have restrictions to stop further development.
I've looked into this previously. Most estates in VIC have a single dwelling covenant that is in force for 5-10 years from titling. So you'd have to wait a while. Only a small number of estates don't have this restriction, but cost vs sub div margin doesn't usually stack up.
I've done it in Perth as a few estates here don't have the single dwelling restriction on them. It's pretty much the same as any other subdivision project but in a new Estate. Even if there is no single dwelling restriction on the title you need to look out for other restrictions that are part of the sales conditions like: - size of dwelling. Is there a minimum size dwelling restriction which would make it hard to do 2 - is there nominated crossover locations which mean 2 driveways would be impossible - is there a single storey restriction and it would only work for you if it goes 2 storey - what is the zoning of the block? - what does the local town planning scheme say?
As mentioned above - check the title (in the section 32) for restrictions - often the case for new estates
Many states and council areas have a no subdivision of a new subdivision rule - Many are time based. Many new estates have covenants too. One serious tax issue would be the GST impact if you are think of selling or building then selling. You are almost certain to be locked out of the margin scheme which will impact profit / costs. Considered a duplex etc on one title ?
Would depend on the zoning/caveats. Have seen a few of these but developers are onto it now so seems harder to find but a great bonus if you can.
This is super super important. Most estate developers are claiming/using the margin scheme when they sell you the land so you cannot use it when you sell again.
I found one a reas sized project builder who had no idea. He was doing all these specs builds by buying land and basically losing $50K a time since all his costing assumed margin scheme or claiming GST on land (he couldnt claim). Got a second opinion when they didnt believe me...Then tried blaming everyone else. Who signed the contract without legal advice ? The seller of the land decides and if the contract doesnt say margin scheme it cant be fixed later.
Really appreciate everyones time and comments. I'll be sure to take these into account. I'm currently looking at opportunities at the moment. Thanks
Just throwing another idea out there. I have done this but in established/built up area, corner lot. Cut up a block into two lots, these are generally in huge demand because there is limited vacant blocks, easy to sell, just a matter of find the suitable suburb with the right zoning. MTR
Most new estates these days seem to cram in as many blocks as possible, so hard to see they would include big blocks that are easily sub-dividable. Any bigger blocks seem to be irregular shapes or very narrow frontages (in cul de sacs). Marg
