Updated August 2, 2020
In this article I am going to outline for you the two types of properties in Brisbane where an existing home can be removed from a site and two new homes can be create from the one original block. One of these types of properties requires a subdivision, whereas splitter blocks in Brisbane already sit on two titles, so no application to council is necessary. This means a Brisbane splitter block can potentially save you, when you develop the site from one property into two, up to $40,000 in total development costs. Now, let me explain.
An example of what is NOT a Splitter Block in Brisbane
The first type of property is where you purchase a home or vacant land in Brisbane that sits on a single title. If you’re wanting to reconfigure or subdivide that into two lots it is NOT a typical splitter block. You will see below that this type of property will only have a single title and the property will usually sit across the center of this site.
Now, in this instance, a development application does need to be made to Council to reconfigure that lot from one title into two. This will require the land owner to consult with a town planning, who will prepare a town planning report to lodge with the development application to council. You will also need a civil engineering report to document where the new services for sewer and water will be located. A solution for the storm water run off will also need to be documented.
This is an area which often confuses buyers, especially inexperienced developers. If a site falls from the street to the rear, the storm water solution might not be so easy. Either the site will have to be built up and retained at the rear so that the stormwater can fall to the kerb, or alternatively consent from the rear neighbour will be necessary.
This can present as high risk, because if the rear neighbour does not consent to you building a stormwater pipe through their yard (and of course this would also involve reinstatement of the property following completion of the works), then the council may not approve the subdivision proposal. I have seen many instances where those new to development make a BIG mistake when they buy – simply because they did not understand this requirement.
The final thing that will be needed to accompany a 1 into 2 subdivision application to council is survey data, so that a proposed subdivision plan can be assessed.
Assuming all goes well, and council approve the application to subdivide the land, you will be liable to pay infrastructure charges to both Council and to Queensland Urban Utilities.
The combined cost to obtain these approvals, and factoring in the infrastructure charges payable, is in the order of approximately $40,000 and that’s going to add significantly to your development costs. So it does need to be considered upon purchase.
An example of what IS a Splitter Block in Brisbane
The second type is a property which sits already on two titles. In this instance, if you’re looking to demolish a single home and build two new homes an application to Council to reconfigure the lot is not required, nor is the payment of infrastructure charges. So that’s a potential saving of up to $40,000.00 to that development.
Here is an example of what a splitter block looks like when one property spans across two titles.
Splitter Blocks are very popular in Brisbane and a lot of buyers are purchasing these sites to land bank them for future development. This is a clever investment strategy for those in the know.
The difficulty for many buyers is finding the Brisbane Splitter Blocks. Because they are so popular, many sell off-market so it is very difficult to find these types of properties on the major real estate sites. Of course, if you are looking to tap into the off-market opportunities to source a Splitter Block in Brisbane, or if you want to have expert advice and due diligence BEFORE you buy, get expert help.