Selling subdivision with restrictions ..

[bennido]

I was thinking of buying a block of land, subdividing into 2 blocks, selling one off and building my home on the other block.

I don't have enough $$ to build 2 houses so I'll prob have to sell 1 block as empty land.

However, a worry I have is that the purchaser will build a really crappy looking house (which would really drive down the value of my place and make me plain miserable).

Is there any way that I can place some restrictions on the type of house that gets built ? Or at the least the kind of facade ?

Can I sell the land with pre-approved building plans on the condition that the owner builds it ?

Thanks !

 

[Propertunity]

Is there any way that I can place some restrictions on the type of house that gets built ? Or at the least the kind of facade ?
Can I sell the land with pre-approved building plans on the condition that the owner builds it ?

Many developers put a covenant on the land they develop in new sub-divisions which specifies things like:
1. Time you must commence a build (so land does not sit vacant)
2. Roof materials
3. Minimum m2 floor area
4. No dual occ allowed
etc

So although I don't think you could force your own building plans on a purchaser, why not talk to your solicitor and see if you can lodge such a covenant on your newly created block?

 

[toylux95]

I would just get approved plans through council for the other block as i think most people would just go with what was approved. or you could try sell a house on the other block off the plan soo as you have total control may be worth a think and talk to your broker you mite be able to do some kind of deal using this method.

 

[bennido]

... or you could try sell a house on the other block off the plan soo as you have total control may be worth a think and talk to your broker you mite be able to do some kind of deal using this method.

Hmm .. that's a very interesting idea which never occurred to me as an option.

Can even use the front PPOR as some kind of display example too as its being built ... thanks !

 

[toylux95]

I am currently trying to get some duplexs approved soo as i can sell off the plan before building starts. Alot of builders are doing it that way nowdays.

 

[roderigo]

The other option you could look at, and I'm trying to do now, is getting a relocatable house put on front site of the subdivision. You can often pick these up very cheaply, and make a good return by renting them out. You then of course can choose what you want the house to look like. I don't imagine you'd get a modern house, but maybe a nice old bungalow. Still a bit of work, but probably a whole lot cheaper than having a new house built.