Subdivision the IP and leaving the lot as it is?

People,

Apologize for the stupid question as I'm just a newbie investing in NSW.
I've got one house that is currently rented out as Investment Property in Bayside NSW area.

The property has one main house and already existing granny flat with the land size is 1000+ sqM, hence I am able to subdivide it into two lot of 500-500 sqM.

If I perform subdivision as two lot, let say becoming like:

• 122 Forrest Road - the existing main house
• 122a Forrest Road - the existing granny flat

Questions:

1. Can the Subdivision cost be tax-deductible as the property is currently rented out as a single contract house?
2. Can I just subdivide the property without actually applying or getting the separate addressing scheme like the above?
3. Can I achieve higher selling price with the already subdivided lot or just provide the word STCA in writing only when I advertise the house for selling?

Your help and suggestion is greatly appreciated.

Thank you in advance.

 

1. no
2. subdivision is changing one title into 2 or more. You could potentially do it without subdividing.
3. possibly

 

will the Grannyflat remain on the house side of the subdivision?

 

No, it will be separated as it is at the back of the property.

 

@Terry_w thank you for the confirmation.
May I know what is the name of that process and I assume I can also apply for separate Water, Electricity, Gas and NBN lines as well?

 

What does this mean?

 

This isn't possible, you aren't allowed to separate the auxillary unit, or secondary dwelling from the main dwelling, the only way this would be able to happen is if you build a property on the subdivision and linked the Grannyflat to it.

You should get Townplanner advise.

 

Like this: https://www.realestate.com.au/property-house-nsw-arncliffe-133804002

Just adding the additional keyword Subject To Council Approval (STCA), but without actually doing the costly Subdivision plan as it is very expensive.

 

a subdivision will require a DA lodged and approved by council. this will come with a list of conditions. your street numbering will be assigned to the new lots. you don't have any say in this.

you could sell the lot with a DA approved if you want to go through the process otherwise all you're selling is a block of land with a house and granny flat.

 

This is just a gimmick sales pitch used by agents to try to sell properties to newbies thinking they can make a quick buck by making the property look like its able to be developed.

Anyone worth their salt would know what they are looking at regardless of the acronym STCA...

 

STCA means the buyer will add a LOT of conditions that could take 6 months to be cleared before anything falls over or is sold. I have a large lot near home and its been offered that way for nearly THREE years with a suggested plan (STCA) for 25 t/houses. On the weekend a board went up now showing site comes with approval for 14 t/houses (!!) BUT it comes with a trap. A old (fibro riddled) house on the site must be restored and if it burns down it will change approval to a lesser density or be left clear as a common area.

1,1A,1B PRESIDENT Road, Kellyville, NSW 2155 - Development Site & Land For Sale - realcommercial

 

That's good to know guys,

Therefore it is best to leave the site as it is (I should say it as blank canvas, let the buyer submit and develop their own) rather than subdividing it according to my own liking.

Because when the buyer have other plan to subdivide it to their own use, they will have no interest.

 

Perhaps. Each site varies. The marketing agent should consider and advise. If relevant a DA for its best possible use should be considered. Many people go to extensive lengths and cost !! for a DA and the buyer could own an adjoining lot and have different plans

 

Yes, that does make sense.
Thank you very muchly Paul.