Following on from the theme of small lot housing in my last blog post, I thought that I would focus on subdivision of inner city land. Brisbane is one of the fastest growing cities in Australia and as a result we are in need of developing land that is central to the infrastructure already built, close to buses, trains and works centres.
The question we often get form our client is “how do we do this”?
As per any great effort in life, it is not straight forward. Due to over regulation we have a number of hoops to jump through, so I will focus on letting you know what the easiest blocks to sub-divide and develop are.
- If you have a block that is 810 m2 and above with a minimum frontage of 20 meters then these are the prime blocks to develop. Why is that? Well this block can be cut into two 405 m2 blocks with 10 m frontages and fit directly into the town plan small lot code.
- If the block has a house on it, the house will need to be built after 1946 as there is Brisbane City legislation protecting houses prior to that time. So if the house was build after 1946, then you can remove or demolish the home without having to go through arduous town planning regulations time and money.
a. This information can be found by visiting Brisbane City Council’s website and viewing their Planning and Development online section. Go to planning section agree to the terms and conditions and then select interactive mapping link. From there click on the address tab and then type in your address.
b. You will see a satellite image of your street that can be magnified to a decent image. You can look at the side Menu and select Map Legend and then select DCP and any other items that you might think are relative to your site. Within minutes you can get a detailed assessment of what your site is. (If this is not your cup of tea then call a town planner and they can do all of this for you.)
- Now that we have determined that the block is not DCP affected and that it is the correct shape and size, we should proceed to working with a town planner to negotiate the approvals and works that will be required.
- At this point, it has only cost you an hour of your time to find the relevant information. However from here though, if you choose to proceed, you will start to spend some money. Get quotes from your town planner detailing their services and cost breakdown. We are happy to forward you details of our consultant if this will be of use to you. Simply contact us and we will email you the details.
- During this process you can be designing the homes to be build on the blocks and getting ready for them to be built after the subdivision has been approved. We have trusted designers that are experts in this field and will be able to design cost efficient homes that meet your needs. Contact us to get a list of trusted designers.
If the block is straight forward and meets the entire town planning requirements, then this process should not take any more than 2 months. You might be living on a block that is currently being undervalued and have the potential to make you a lot of money for not so much effort.
To give you an idea of profit the block we referred to in our last blog post made… (it was subdivided in this way).
- The budget to subdivide was approx $50,000 (including operational costs such as water meters, etc)
- The cost of the property was $400,000. The total costs = $450,000
- Each block sold for $278,000*2 = $556.000
- Profit of $106,000 before tax.
Better than working!!!!!
(Please note that his information is based on generic information. Each project is individual and costs may vary from block to block.)