In this post, we more items that may be overlooked by both purchasers and developers when buying a rear strata or subdivided block.
Is the project feasible?
- Buying the block of land,
- Building a house
- Providing the finishing touches
One very important item that should be included in your O&A (offer and acceptance) of any rear strata or subdivided block is to be subject to a feasibility costing
Central Avenue homes can have a house designed and costed including all provisional sums to see if the project is financially viable in a relatively short period of time. This is probably one of the most important clauses to add to your offer.
Some of things that may need to be added to your building costs that potential buyers don’t take into account are:-
- The block is small, and has limited access for vehicles or turning circles
- Has different levels across the block
- Retaining or brick build ups
- Has easements not necessarily shown on the plans
BAL (Bushfire attack level)
2 houses in the same street may have a different BAL. Unfortunately, some of the things required to meet the level can be costly. For example, the assessment itself if one has not been done already,
- Ember proof flumes to the roof
- Ember proof weep holes to the brickwork
- Ember proof seals to the garage door (some doors are not able to be selected due to a BAL rating)
- Ember proof fly screens and glazing to windows
The assessment and upgrade of items to achieve the level that the block requires.
Most shires may require a planning or development approval for rear strata or subdivided blocks. It might be prudent to contact the shire and enquire if the block requires planning approval before applying for a building permit. A a good suggestion would be to have them put their response in writing.
- Has the block had new fencing installed,
- Will old fencing need to be replaced?
- Is it asbestos?
- What type of fencing is required in that area, the costs can vary on the product required.
Some shires now require not only that storm water is included in the building application, but may require a hydraulic engineering report as well. The hydraulic engineering report ensures the correct calculations for the storm water disposal has been met.
Geo technical report
Some shires require that a Geo technical report is provided along with the hydraulic engineering calculations to establish the type of soil on the block.
Has the gas been run? With some services, the trade, be it electrician or plumber are able to run the lines or conduits. However with the gas run, Atco, or the gas providers do not subcontract out the gas run. If it hasn’t been done to a rear strata lot, there may be additional costs to run the line.
Sand ladders or limestone drive for access during construction, tiger lines, for overhead power lines, removal of excess soil, possible retaining or brick build ups.
Some lots that have been subdivided can have a sewer easement as part of the block, and you may be able to have piling alongside the line to be able to use the area. However, some areas may not be able to be piled and the easement is a wasted an unusable part of the block of land.
These items can become costly, especially if they haven’t been taken into account when purchasing your block of land and that amount can eat away the amount that you want to put towards the building and finishing off of the home.