Brutal Art Design + Build » Subdividing Land

Do you have plans for 2012? Part 2 – The process

Brutal Art Design + Build — Wed, 25 Jan 2012 05:53:53 +0000

In part one of Do you have plans for 2012? Part 1 – Your homework, we talked about looking for a suitable property to purchase, for development and sub-division. Perhaps you don’t have to look any further than a property you already own.

There are many people who already own a property that is suitable for development.

So how do you know if you can develop?

You can hit the ground running in 2012 if you already own a property, by engaging Brutal Art Design + Build to provide you with a Property Development Assessment to ensure you can legally develop you site. 72 hours later, you will know whether or not you can sub-divide your site, what planning and zoning controls effect your site and their impact, along with a summary of development options – how many dwellings and what type you can fit on your site, taking into consideration the sites attributes. You will also be provided with a high level feasibility which will be of use when talking to a financier.

Now that you know it is possible to develop your site (you will have completed Step 1: Assessment), we have a structured process to take you from town planning, through to signing up a builder to build your project.

Step 2: Strategy will provide you with council feedback on your proposed development, and a direction for your project.

Step 3: Concept will give you the understanding of what your dwelling/s will look like, ie where are the bedrooms, kitchen, living area, etc. You and council will also have the opportunity to provide feedback, for refining the plans.

Step 4: Application is the preparation of a town planning application, advertising and notice of decision – a town planning permit.

Step 5: Detail is where the working drawings are produced, the specification prepared and the engineering done ready to engage a builder.

Step 6: Build will leave you with your dwellings/s built, ready to sell, rent out or occupy.

Step 7: Realise that your project is complete

This is a basic summary of a process that can take between 12 and 24 months to complete, without complications. There are many layers to property development, so it is important to engage a professional who understands the process.

PLANS FOR 2012?
Thinking of developing? Engage us for a Property Development Assessment today!

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Last round of Property Development Assessments for 2011

Brutal Art Design + Build — Wed, 14 Dec 2011 05:49:21 +0000

Christmas is fast approaching and the Brutal Art Design + Build team are busy doing the December dash.

If you would like a Property Development Assessment to ponder over the Christmas break, you will need to order and pay for it by close of business Friday 16 December 2011, to ensure we can have it back to you before we break for the year.

The team will be finishing up for the year at 12 noon, Wednesday 21 December 2011 and will be back at the drawing board on Monday 9 January 2012.

We would like to thank our clients and loyal website followers for the opportunity to work with you on your projects this year and for reading all our articles.

We will be publishing a couple of articles just prior to Christmas for you to read over the break.

The Brutal Art Design + Build team wish you a safe Christmas and we look forward to helping you achieve your property goals in 2012.

LAST ROUND FOR 2011
Thinking of developing? Engage us for a Property Development Assessment today!

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Intergenerational Housing: Shifting Wealth – Part 2

Brutal Art Design + Build — Tue, 18 Oct 2011 04:27:25 +0000

In Part 1 of Intergeneration Housing: Shifting Wealth, we talked about the expense of land and the difficulty of adult children being able to purchase property in the neighbourhood in which they grew up. We discussed two scenarios on how intergenerational housing could work and this week, we discuss another two scenarios.

Scenario Three:

It is becoming more common for families, and sometimes friends, to pool their resources to buy and develop land for the purpose of creating a viable housing option. It may be that by putting their lot in together they can afford to live in a location that is otherwise out of reach.

Let’s say three families or friends are looking to buy in the same area. They set down their goals and can then target the type of property they need in order to suit these needs. For example they might each desire a three bedroom dwelling in a certain neighbourhood close to certain amenities. They form an entity to purchase the property (or perhaps purchase as tenants in common) and they develop the allotment into three dwellings on three new titles.

Scenario Four:

An intergenerational shared investment where mum and dad have the property behind them and would like to help the kids out while providing for their own retirement income needs. In this scenario the parents and their children come together to purchase and develop a simple two unit, three unit, or dual occupancy project.

With the intentions clearly agreed at the start of the project ultimately mum and dad end up with an investment and the children have a house of their own, with each securing their property for significantly less than they otherwise would.

Summary:

Pooling resources is becoming more common in making a project more viable.

Needs have changed and many people are happy with less land as long as they are close to the amenities that are important to them.

We are living longer and the transfer of wealth is more commonly occurring between generations by agreement rather than by inheritance.

Subdivision and design can help shift wealth from generation to generation.

How we can help:

Property Development Assessment to establish if your property can be viably developed

Advice on finding the right property

Land Use Plans to explore the options

Town planning applications

Project design and documentation

Subdivision services

A tailored design and build solution

CONSIDERING SHIFTING WEALTH?
Thinking of Intergenerational Housing? Engage our Design and Build services today!

Rating: 6.0/10 (1 vote cast)

Intergenerational Housing: Shifting Wealth – Part 1

Brutal Art Design + Build — Wed, 24 Aug 2011 06:07:01 +0000

“Let’s face it, we don’t have expensive housing in Australia, we have expensive land. The average cost of residential land overtook the median cost of constructing a dwelling, across all Australian capitals, about five years ago. The difference between the two is now considerable and growing.” Michael Matusik.

We are finding that more and more people are considering property development for the purposes of bringing families together in a completely different way to the traditional housing models of previous generations. We shall explore some scenario’s in Part 1 of this two part series.

In part, this shift is a response to land costs and the inability of adult children to purchase property in the neighbourhood in which they grew up. There seems to be a new way of addressing the issues confronting both older and younger generations using subdivision as a way to shift wealth.

Most commonly, these arrangements are around the gift of land from one generation to the next. In simple terms, this means mum and dad agree to subdivide the land on which the family home sits so that their children can build a home. However, there are many different ways this can be done, and the benefits can be great.

Scenario One:

Let’s say a family grows up in a middle ring suburb on an “average” 700m2 allotment with a traditional detached dwelling of three bedrooms and plenty of backyard to exercise the Victa lawnmower. Now mum and dad are older, maybe retired – or soon to be – the kids have gone to university and are now a little bit over the share house thing and are looking to settle down. They would like to settle back into the old neighbourhood but the cost of land is prohibitive.

In this scenario we are finding that the solution may be the subdivision of the family home into two or more allotments. In this way, mum and dad can downsize without leaving the area they know and love, and can give the children a ‘leg up’ on the property ladder.

Scenario Two:

Recently we took on a project that essentially covers three generations and is all due to a family legacy. The project brief was to retain and modify the existing dwelling and build two additional dwellings on a large (approximately 900m2) suburban allotment. In this case the original house was left to the children after the parents passed away.

The house was sound and had sentimental value so it was decided it should be updated and retained. The two siblings to whom the house was left decided to also introduce a third generation (an adult child of one of the siblings) to also be part of their project. So, that which started as a family home on a generous suburban allotment, will now house three families.

Conclusion

There is a shift in traditional housing models of previous generations, towards intergenerational housing.

Land is expensive and we are currently seeing our towns and cities being re-shaped to suit new housing types.

Intergenerational housing is an opportunity for parents to give their children a ‘leg up’ on the property ladder.

In Part 2 of our Intergenerational Housing: Shifting Wealth, we will explore two more scenario’s.

CONSIDERING SHIFTING WEALTH?
Thinking of Intergenerational Housing? Engage our Design and Build services today!

Rating: 8.7/10 (3 votes cast)

Two up: Dual Occupancy Developments – Part 1

Brutal Art Design + Build — Fri, 24 Jun 2011 05:33:21 +0000

A dual occupancy development is a great way to start or expand your property portfolio. There are plenty of properties on the market that make ideal dual occupancy development sites.

What is a “dual occ”?

A dual occupancy development, in Victoria at least, refers to the practice of building a second dwelling on land that already has an existing dwelling on it. The term has different meanings in other parts of Australia, but we won’t get into that right now. The municipal authorities and planners generally are just as likely to refer to this type of development as medium density infill.

Dual occupancy developments have been going on for decades now, but the cost of land over more recent times has seen the practice becoming more common and perhaps more acceptable. We have even seen a couple of examples of “triple occupancies” in our office, whereby the original dwelling can be retained and the residual land used for two additional dwellings.

A history of the 50 x 150 block

Early on, housing was kept as close as possible to industry, so our inner suburbs are made up of many small allotments, commonly as narrow as 15’ (5m) often back to back as terraces. This type of subdivision would use up as little as 100m2 of land per dwelling.

After the Second World War, and improvements in personal and communal transport, the 50’ x 150’ block – the cornerstone of the Great Australian Dream – became the standard suburban allotment. The proliferation of these allotments throughout what were then the outer suburban reaches, has created a supply of land for infill development in suburbs now considered middle ring suburbs. Whereas a terrace subdivision might take up 100m2 of land, these suburban subdivisions were commonly around 675m2 of land per dwelling.

Sourcing properties specifically for dual occupancies

We have successfully obtained town planning permits for dual occupancy developments on lots much smaller than 675m2, however, a property of 600m2 or more, in a suburban context, is a good rule of thumb, allowing 300m2 per dwelling.

In many cases our clients already have the land and dwelling and are looking to develop a second dwelling and subdivide either for a one off gain, whereby they sell one dwelling or the other, or an ongoing income stream from the rental income from the second property.

It is also becoming quite common for proposals to be cross generational, or familial, where one member of the family will sell or gift land to another in order to build a second dwelling. With the cost of land in middle and inner suburbs continuing to rise, this practice is likely to become increasingly more common.

Conclusion

A dual occupancy development is the subdivision of an existing house and land into two allotments; one with the existing dwelling and one with a new dwelling.

Standard middle ring suburban allotments are often ideal for dual occupancy development.

Property can be sourced from the market, through family, or it may be right behind you.

Part 2 of Two up: Dual Occupancy Developments we will discuss some financial benefits of a dual occupancy development.

SUBDIVIDING LAND IN VICTORIA?
Thinking of a dual occupancy development? Engage our Design AND Build services today!

Rating: 8.2/10 (5 votes cast)