Subdivision Size Advise

Hello PC,

I have recently purchased my first house in Lathlain, Perth WA. The block is a scratch over 1000sqm and is zoned R20.

The plan upon purchase is to subdivide the back block through a survey strata arrangement and retain the existing dwelling in line with R codes. I will be renovating the street appeal of the existing dwelling to maximise the sales value of the back block; we will retain the front as our PPOR.

The market will be people seeking to buy the block to build a PPOR in a family oriented area close to the CBD. I want to maximise the value of the back block but also want a realistic return for the value lost on the front block. I have spoken to a few real estate agents in the area but everyone perspective is different; especially in this strange Perth market.

Some options based on the R20 zoning;
Option 1: 450sqm front + 450sqm back + drive
Option 2: 400sqm front + 500sqm back + drive
Option 3: somewhere in the middle

How hard is it to communicate to potential PPOR builders that more land = more cost? I can't see that you can really build that much more of a house on 500sqm compared to 450sqm as both are just huge!

 

Both are huge by today's standards but a larger block will enable a decent garden area plus single storey design if families are the main demographic. So they might be able to fit a pool for example or just have a decent garden. When you look at the single storey family homes on 450sqm there really isn't much garden area at all.

Buyers are aware of bigger = more expensive. They will often break things down to a square metre rate and determine value based on that.

It may also come down to placement of the existing house and if you want to just use the front garden or also have some rear garden. This maybe partially determined by the layout of the house.

 

Thanks for the input WM. Great to hear 500sqm might be sought after to achieve the house + outdoor living combo.

I have drawn up the plan so you can see the block. Allowing 500sqm for the back block really brings the front block down to the limits of R20 so I don't have much more to offer without going down the path of a variation for retaining the existing dwelling.

In red I have highlighted the lot size for the 450/450sqm option and in blue the 400/500sqm option.

Sbdv Plan by tl_6100 posted 15th Apr, 2019 at 11:52 PM

 

Actually you can have the front house on as little as 350sqm if you wish without any variation needed. The R20 minimum block size is 350sqm and you would meet the average of 450sqm over the 2 lots.

 

Gee yesterday was not a good day; I can't spell advice and can't read a simple table :/

You are right about the 350sqm, I will have to think about that. It might be too small for the area at that size for the front block as I don't see anything under 400sqm on intramaps.

What do you think about an all the for the back block / retain the front strategy. The goal with this process is to end with as little mortgage as possible from my 20% deposit but also be able to use the equity for IPs in the future.

If 10 years down the line I wanted to bowl over the house and build a 2 storey 4x2 house would 350sqm be enough room?

Tim

 

I probably wouldn't do it at 350 but it does give you some food for thought about future ideas. I can do 2 storey 4 x 2 on 300sqm but if given the choice I would prefer a bigger block again for lifestyle reasons - not everyone is prepared to pay for lifestyle though.

I probably wouldn't give it all to the rear block simply because it's value is intrinsicly linked to what is probably an inferior product at the front. Doing a renovation, as you plan, will help with that but it will always be the house behind an older house.

If you plan to eventually bowl the front house over than I'd probably go 450 front, 450 rear.

I'm not overly familiar with Lathlain though. @Perthguy is that near your neck of the woods and market you follow?

 

Lathlain can be pricy so I don't really follow it.

What I know about my area next door is that small blocks are not popular with renters. The houses where the outdoor living area is fence to fence paving are not doing well on.the market.

I would advise against 350 sqm. See how 400 sqm looks for the front house but also see what has sold for vacant blocks and what has sold for front houses on split blocks.

 

Hi, @tl_6100,

Beautiful little deal!

My personal take on this is probably similar to @Westminster and @Perthguy.

The one thing I would add is that your block size should be driven by the proposed design of the new home. In R20 you get 50% site coverage for your home. At 450m2, you get a 225m2 building footprint, and at 500m2 the home can be 250m2. That 25m2 matters A LOT to the overall quality of the home. In some areas, it can translate to $50-100K+ in the sales price (and profit).

I'd be checking with local agents how larger homes value in the area and make my decision on that basis. If larger homes seem to attract a large premium, then I'd be going with an asymmetric split (larger at the back), and if they don't seem to attract any premium then I'd be going with a more balanced split. I don't think I would make the front house less

To illustrate just how substantial the difference can be I'll post a few of the floor plans that we have designed for our clients. Notice how the size of living areas, bedrooms and extra 'wow' factors are affected by the increased square meterage.

Here is a ~215m2 battleaxe home:

And here is another 215m2 battleaxe home:

And here is an example of 250m2 battleaxe home:



I also don't think that you need to make the house any bigger than 250m2, so having the back block bigger than 500m2 is kind of pointless, and may damage the value of the front place. On that basis, I wouldn't reduce the front to below 400m2.

To summarise, I'd check the market to see what sort of premiums larger homes attract, and then I'd create a block that would accommodate the best home, and there is no sense in making the front block smaller than 400m2.

Hope this helps!

Cheers,
Angad

 

@Angad Singh that 250m2 design is nice!

 

@Angad Singh wow that 250m2 home is amazing - especially in contrast to the 80m2 dwelling on my front lot!

Thanks for the great advice. I'll keep these designs in mind when discussing with the realtors.

 

Hehe thanks guys! @Perthguy @tl_6100

My designer deserves all the credit She has a masters in architecture and only charged about $1k for a that design. She always ensures the home is functional, beautiful and has a solar passive orientation.

I have been working with her for approx 6 years and she is one of the designers that understands the right balance between the commercial reality and architectural flair. LoL!

Cheers,
Angad

 

@Angad Singh great design. Good price.

@tl_6100 check what is selling in the area and target a specific market audience. Get some concept drawings done that you can use to get appraisal from agents and construction costs from builders. Then compare to see what is worth doing considering the difference in sale time also.

Good luck