What did it cost you to subdivide?

At the moment, we hear that the majority of 1 into 2 subdivisions in South East Queensland are starting to cost between $80-120k whereas a few years ago they were $60-80k.

Alex

 

I found out from Google on the internet, corner blocks greater than 700 M2 can subdivide to 350 M2 Minimum. My block of 699.726 M2, probably will be ok. The problem is I bought my block here in Kingsley, Western Australia in 1986 for $16,500.00. I take it I would have to pay the ATO tax on the profit on one of the blocks if I subdivide and say sell each one for $400,000.00. ($400,000.00 - $8,250.00). If I leave the house on the block and sell for say $600.000.00, the new owners could subdivide for say $60,000.00. They would get a profit of up to $140,000.00 (depending what they can sell the blocks for).

 

Curious as to which regional area?
I am looking to do almost the exact same in Bendigo but have been given a ball park figure of $55k+ PER DIVISION to retain the original house and split remainder into 3! Surely not!
Anyone here with experience in Bendigo doing similar?
Thanks, Paul

 

I looked at doing similar in Bendigo a couple of years back. The figures didn't stack then for a land sub division. End values just weren't enough.
55k per lot is seems expensive, but without knowing the scope of works required it's hard to tell.

 

Thanks Connor
I'm not looking to subdivide right away. More likely in 3 to 4 years. When I was told it could cost over $200k to split a flat block into 4 it didnt seem right.
Second opinion required I think!

 

I did a retain and subdivide in to 2 blocks (one with existing house and one vacant land) in Bendigo and it cost me just over $50k. Main cost was the Civil works for the storm water detention ($20k) as the council has stipulated the storm water system is at capacity. Probably wouldn't do that again. Need more blocks for economies of scale with consultants, etc.

 

What kind of profit margin would you be looking at for that kind of outlay?

 

Hard to say, I've held that block for 20 years, only paid $60k for it If you were to buy the same block, do the sub-division and sell, I'd say bugger all margin. Just making money for everyone else. Only way to make a make a worthwhile profit is to buy cheap, of course, and then do the building yourself, if you can, but then that just manual labour not margin.

 

Hey for the guys in brisbane can you engage one outfit to look after the whole sub-division for you or do you need to get each thing done individually yourself ?

 

If you are doing a 1 into 2 sub then get a town planner that works with a surveyor and a lawyer. Paying a project manager over the top will cost you a lot for not much benefit. Different story when you have to start putting in sewerage, drainage, power, comms, roads etc for multiple lots

 

Hi,
I am considering a subdivision in Adelaide.
Can you help with suburb selection given your vast experience in local market.
Can you suggest professional cosulconsuts that can help with.

Regards
Maha.

 

Its not worth it here at the moment. Most people are sitting on their rentals for a few years first

 

Hi,
Thanks for your help.

 

Would you still say this is the case in the current market?

 

Hi, I'm considering buying a property in the Inner West in Sydney and sub-dividing. Can anyone on here shed any light on approx costs and the best process to go about it?
Thanks

 

Looking to be about 40k, 1 into 2 lots NSW Hunter.

Private pole: 5000
Minor Works: 4125
DA and approval: 16000
S94: 8000
Fencing: 4000
Demotion: 3000
Removal of Concrete: 2000

 

@PaulB Have you revisited or progressed this subdivision since your post? I'm working specifically on these type of projects in the Bendigo area now and would be keen to discuss your experience so far.

 

1 into 2 Subdivision.

Retain house on one block, demolish Granny-flat (unapproved) on the other



$13k provision sum in the building contract for Build over sewer.

Updated costs.

 

Speak to an accountant. I know of someone that had a similar situation and because it was not their intention when they purchased to carry out the subdivision it was not classed as an enterprise and was therefore free of CGT. Check it out on the ATO site by searching subdivision.