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Are you sitting on a Splitter Gold Mine?

Splitter blocks brisbane

Splitter blocks are once again becoming popular as investors try to get the most bang out of their buck or you may be already sitting on a goldmine if your existing property can be split.

 

The term splitter block applies to properties where: there are two or more lots on one title.

A recent example was a Fallon Street, property at Everton Park.  It was a 1225 square-metre block, already on two titles but with the option to reconfigure to three titles, it created a frenzy when it was listed.

The listing agent said, "It went nuts. I can’t give you an exact sale price as it’s not unconditional yet, but I can tell you it went for over $1 million,” he says.

The inner city Brisbane suburbs such as Newmarket, Wavell Heights, Nundah, Virginia, Bald Hills, Deagon, Sandgate, Banyo, Boondall, Northgate, Mitchelton, Enoggera have been popular spitter block locations over the last decade.

These inner city suburbs in Brisbane typically are lots of 10m by 40m or 405sqm so if your property is 809 or higher you may find it is already split into two lots and you don’t have to worry about spending money on subdivision approvals or waiting for the approvals to be processed.

There is a downside like the need to demolish or move an existing house and in some cases the house may be heritage listed or in a demolition controlled zone.

As soon the lot has been split into the two titles the site is cleared and two new houses can start construction.

Splitters are where investors take advantage of old town planning methods. In the 60?s and 70?s around Australia, most residential blocks were subdivided at a ¼ acre or 1000m2. Today Local, State and Federal  Governments all know the value of a more dense population. Governments save billions of dollars in infrastructure by encouraging the community to live closer together. They even encourage the development of smaller blocks of land today that are in some cases less than 250m2.

When developing splitter blocks in Brisbane there is a lot of things you need to consider:

Below is the process we go through to determine if the project is viable when splitting a block for development.

To determine the costings of a splitter block you need to look at:

  • Cost of the site
  • Demolition approval
  • Demolition costs
  • Services (Server and water)
  • Location of services on the block
  • Other associated development costs
  • Transfer and legal costs
  • Subdivision costs (e.g. civil design, town planning, public notices, council fees and any council contributions).
  • Building construction costs
  • Associated site costs (Leveling and retaining)
  • Marketing on finished products

If all the figures add up to a profitable project….an educated decision can be made.

After identifying the block could be suitable as a splitter block, we check:

  • The demolition control Precinct (DCP) if the house is built pre 1946
  • if the block is on the flood map or any overland flow issues.
  • Dimensions of the block and if it is suitable for sub division into a splitter block

and then run through the costing of the project.

Do you have any questions about splitter blocks and or sub division in Brisbane or surrounding areas? Don't hesitate to call our the team at Madeleine Hicks Real Estate who know all about the best areas to acquire splitter blocks in our area.

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