Hi, I'm on 4 hectares zoned low-medium density residential in the Toowoomba area. A lot of development is happening locally, with a new 30-hectare multi-purpose sports field opening nearby. The whole surrounding area will eventually be residential housing. I’m looking at the feasibility of subdividing, dedicating around 2.2 hectares to the creation of several lots: possibly ten at 20x32m, ten at 20x25m, and eight at 15x25m (sizes encouraged by the planning code), with a new road connecting them all. This is rough plan: http://s15.postimg.org/6x9xab4nv/IMG_20160125_185640.jpg The lots should sell for at least $100-$150k, and I'm guessing $500k for the road, and $60k for the development/fees for subdividing each block. I don’t have the money to fund the entire development, so some questions: Is it possible to develop in stages, subdividing and selling in portions? Or even to sell lots before they’ve been subdivided? The existing road to the property isn’t sealed. Do access roads impact on a DA, and if so, what contributions are required by council? There is no local sewerage system. Is this idea unrealistic or is there a more cost-efficient way to go about it? Any advice or personal experiences would be appreciated. Cheers.
This isn't my bag, but I know people for whom it is. In an area not too far away (ok, a little bit away), ballpark costs can be up to $150k/lot to split from scratch including your roads and infrastructure. This yields a profit of 50-80k per lot.
Hi You will probably have to build a new council access road at your total cost as part of the conditions for development approval, It could also require new electrical substations, sewerage main upgrades etc, all of which could be your responsibility. Or you could be up for only costs for your subdivision. It is good to work this stuff out before hand as sometimes they can be a deal breaker. As well as stage it, you can put together an unregistered managed investment scheme, up to 20 people and 2 million cash to fund the development. We have done for clients but you need to do a lot of work getting your costings right before you take it to people
I was a tad optimistic. I'm projecting $110k/lot minimum, including electrical, sewerage, infrastructure levies, etc., now. The need for a road is confirmed, and a padmount site/sewerage upgrade appears likely necessary. An investment scheme would bring a whole new level of complexity to the project. I'll focus on keeping plans simple for now, unless they're judged unfeasible. I'm seeing a consulting surveyor. Given increased cost assumptions I'll have to dramatically rework my original proposal, with efficiency taking priority. I'll post back with an update when I know more, for posterity's sake.
