Your link to the diverse range of information that exists in the world of Property Investing
The subdivision process has 3 basic stages - the time to completion ranges between 6 to 9 months. This is, of course dependent on the scale of the subdivision and extent of works required.
First Step in the process is to talk to a planner who can quickly ascertain if the property can be subdivided and the likelihood of success.
Second Step is to obtain a survey of the lot to locate any house, poles, pits, contours and trees or anything that will affect the subdivision. Usually the Planner organizes this for you. The plan from the survey forms the ‘proposal plan” for the application.
Third Step A development application for Reconfiguration of a Lot (i.e. subdivision) is then prepared and submitted to council for their consideration. Typically, a code assessable (i.e. compliant) application takes on average 3 or 4 months - slightly longer must we request council to relax on some of their regulations.
Applications which are eligible for the RiskSMART (fast-tracked), programs offered by some councils have a target timeframe for assessment of 1 to 4 weeks. In any case, once council is satisfied that the plans don't create any negative effects to the community, the environment and that the new sites will be serviced correctly, a development approval (DA) should be issued.
A DA has a currency period of between 2 and 4 years - the approval is bound to the land, benefiting the landowners with a real potential for additional dwellings.
Council will provide a number of conditions with the DA. These conditions will specify exactly what council requires from you (the developer), so that council can continue to support your development. This stage will involve a detailed assessment of design(s), which need to be prepared by a civil engineer for things like sewer main extensions or property connections, water connections and storm water management, as well as the coordination of services like electricity and NBN. Allan Van Planning works with several very good, efficient engineers. We can recommend one in your area.
Once these connection applications are submitted, approvals by councils and different bodies (i.e. Energex, NBNco), take on-average anywhere between 1 to 3 months, depending on which statutory process they go through and how well the whole process is managed. When council approval is attained, it will specify exactly the construction methods, materials, processes and more which will need to be carried out for the compliant construction of the project.
Once all required infrastructure has been completed and is in its correct place, a registered surveyor will prepare the Survey Plan and apply for Plan Sealing through local council. Plan sealing is the process where Council review all relevant conditions of the approvals issued, assesses the subdivision and ensures that all conditions have been satisfactorily complied with.
Once the plan is sealed, this allows the plan to be submitted to the titles office, also for the survey plan to become registered and the new titles issued.
Upon registration and issuance of titles, settlement of the properties can take place.
Some lots may require minimum investment in infrastructure such as simple new sewer and water connections on existing mains and electricity and phone services. Others may require much more substantial upgrades such as footpaths, water or sewer mains to be extended and underground detention tanks.
The current maximum rate for infrastructure charges applicable under the Adopted Infrastructure Charges Regime (AICR) stands at $28,000 per additional lot - for a ‘1-into-2’ that's a total of $28,000. An indicative budget estimate for the entire subdivision process including theses infrastructure charges is generally in the range of $60,000 – $80,000 (not including demolition and or relocation of the existing dwelling). This figure is based on some general rules of thumb and a solid bit of experience.
Each subdivision requires its own detailed feasibility study involving input from planners, engineers & designers - as costs in some cases may well exceed the range described above.
Re-configuration of a lot (1 into 2). Let’s say it is a simple / typical 800m2 in Brisbane City Council.
|Demolition / Relocation||$20000 to 28000|
|DA Application Fee||$3280|
|Demolition / Building Approval Permit||$1500|
|Operation Works / Compliance Assessment Fee||$3000|
|Civil Connections (Sewer & Water)||$17,000|
There are many factors that may affect these costs. Each site has it’s own set of problems or constraints.
Allan Van Planning Pty Ltd. Any questions or enquiries, please call me on 0418 312 724.
ALLAN VAN PLANNING PTY LTD CONSULTANTS IN TOWN PLANNING AND SURVEYING. ABN 87005163431
What are the Pitfalls when chasing lower interest rates, and how speaking with financial consultant before changing providers can help you avoid the significant...Learn More
The Queensland first home buyers grant is available for first home buyers who are buying or building a brand new home as their first home.Learn More
Common methods of depreciation are Straight Line Depreciation, Reducing Balance Depreciation, Sum of the year Digits Depreciation, and Units of Activity Depreci...Learn More