Know the Planning Controls and Site Constraints
The key planning factors to consider when looking to subdivide land are firstly the zoning of the land and then site-specific restrictions. In NSW, the Local Environmental Plan (LEP) prescribes whether land within a particular zone can be subdivided. If the zone allows subdivision, the LEP will set out minimum lot size standards.
The prescribed Minimum Lot Size specifies the minimum size that an existing lot must meet in order to be subdivided, as well as the minimum size for newly created lots.
Site-specific restrictions to consider include topography, bushfire prone status, flood prone status, ecological constraints, contaminated land, heritage status and others. These restrictions can prevent a site from being subdivided, or can affect the lot design and the manner in which a subdivision takes place, even if the zoning and LEP controls allow.
The most certain way of knowing Council's planning controls for a site is by requesting a 10.7 Certificate (previously known as a Section 149 Certificate).
If the lot does not meet the Minimum Lot Size standard, it's not necessarily a hard no. The NSW planning system provides flexibility through Clause 4.6 of an environmental planning instrument, which allows a council to vary development standards in certain circumstances. This requires a written application demonstrating that compliance with that development standard is unreasonable or unnecessary in the circumstances of the case.
If you are not familiar with planning controls, it is recommended to engage the services of a town planner and/or surveyor who can help you determine the development potential of the land.
Engage a Professional Team for Development Approval
Once it has been determined that land can be subdivided, you will need to engage a surveyor and town planner. The consulting surveyor will carry out a detailed survey of the land and prepare the plan of subdivision, which your town planner will ensure complies with all development standards.
It is considered good practice to have a pre-lodgement meeting with the local Council. All consultants involved should attend, including your town planner and others where relevant such as an ecologist or bushfire specialist. The outcome will be a list of items prepared by council to be addressed when preparing the development application.
Once approved, Council will issue a development consent setting out conditions to be completed before Council endorses the subdivision plan. These may relate to provision of water supply, access, power or any other item Council considers important.
Obtain Your Subdivision Certificate and Register with the Land Titles Office
At this stage, the "linen" plan is prepared by the surveyor and submitted to Council for their approval. Council assesses whether all conditions of the development consent have been met. Once the Council has endorsed its certificate on the subdivision plan and all interested parties have signed it, the Surveyor can have the plan lodged at the Land Titles Office on your behalf.
The plan will become registered and title documents issued. The new subdivision is now complete and you are able to transfer ownership of the new lots.
The Main Costs
The main costs involved are the development application costs, construction costs, infrastructure contributions and plan sealing charges. Minimum costs for even a minor subdivision can start around $80,000. As an industry standard, $80K per lot is a common budget estimate. So while subdivision is one strategy that is great for quick equity gains, it is also risky and highly complex.
First Steps
You should always do two things to reduce risk:
- Due diligence and upfront planning — gather as much information as possible about your site before beginning.
- Seek professional help — so you don't make mistakes and can make a greater profit in the long run.
At Sky Planning we can assist you through every stage of the subdivision process — from site acquisition to registration with the Land Titles office. Contact us today for a free quote or over the phone consultation.