Subdivision Costs

The Real Deal

There are many tips and traps to watch out for when considering a Subdivision, a great start is the book titled The Real Deal it is a book written by Brendan Kelly a foremost expert in Australian Property, in particular this book covers off on Subdivision in Part III as follows;

Part III: Subdivisions plus
8. Subdivisions
9. Separating and renovating a duplex
10. Renovate and subdivide (1 into 2)
11. Renovate and subdivide (1 into 3)

Part IV: Construction
12. Construction
13. Developments

This Book is only $25.50 and at that price an excellent investment

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One of the most common mistakes made by fledging Developers is underestimating what people refer to as “Subdivision Costs”.

What is a “Subdivision Cost?”

I always think of Subdivision Costs as being the cost for all the work required to get your separate titles issued.  This work will vary from one Subdivision to the next. Some common examples of work required for separate titles are Headworks (Water Corp fees), Surveyors fees, new power dome, new sewer junction and site clearing.

And how much will the Subdivision Cost?

This is a commonly asked question and the answers you will get can vary quite dramatically. I quite often hear people mention that they have allowed $20,000 to $30,000 because somebody else has told them to.  Never rely on these estimates in your calculations before choosing a site, I’ll show you why. Below are some costing examples for what most people would consider to be subdivision works.

 

Water Corporation Headworks fee.… $6,500

Surveyors Survey Strata Fees.… $5,400

Western Powers Power Dome.… $1,500

New Sewer Junction.…$3,000

Clear Site (Remove rubbish, lawn, trees, sheds etc).… $15,000

 

Total.… $31400

 

Now what about all the items that you didn’t think about or weren’t told about?

 

You may need to extend the sewer main.… $13,000

What if there was a pool in the backyard.… $5,000

What if your council needed a constructed and drained driveway.… $4,000

What if you need a brick store room.… $8,000

 

The list goes on and on. Your $31,400 could now be $61,400 So as you can see there is no specific amount to allow for Subdivision Costs.  You need to analyze what items are required to get your titles through, allow an amount for each item, and then work out your total.
If you want to know more, and there is so much more that you need to know, take a look at the book.
Full recognition is given to Brett Taylor for this article.