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Council Zoning

Discussion in 'Real Estate' started by Stevec, 7th Feb, 2007.

  1. Stevec

    Stevec Member

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    15th Aug, 2005
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    Sydney
    Hi all,

    I would like any comments or help in regards to the above.

    Basic rundown is, I have a relative who owns a 1600m2 block (actually 2x800m2 blocks) and has approval from council to build 4 townhouses on it. They are currently building 2 townhouses on one of the blocks.

    The thing is that council has not allowed them to strata the units, so once they finish the first 2 they have to sell them together 'as one' because they are on 1 title.

    This is a major drawback as we know!

    I have said that if council want budge on the ruling, why not take them to the Land and Enviroment court. Depending how much money that would cost, it would be neglible if they get the strata approved, as values of the units would soar.

    Has anyone got any remarks/comments/help or had a situation like this themselves?

    Any advice would be much appreciated.

    Thanks,

    Steve
     
  2. Nigel Ward

    Nigel Ward Team InvestEd

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    Can you give us some more info on why the council won't allow strata titling?

    N
     
  3. Stevec

    Stevec Member

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    Location:
    Sydney
    Hi Nigel,

    I wish I could :) but I have only spoken to my sister about the matter so far. Her husband has had all the dealings with council to get the development approved so i need to get the nuts and bolts out of him.

    The council must not want them to make more money if they allowed the strata titling:p

    I just don't understand why they would approve the 4 townhouses, but not let them strata the 2x800m2 blocks into 4x400m2. What difference would that make to the overall scheme of things? Theres no greater enviromental impact or anything else along those lines.

    Cheers,

    Steve.
     
  4. MrDarcy

    MrDarcy Well-Known Member

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    Which council ?
     
  5. Stevec

    Stevec Member

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    Pittwater:mad:
     
  6. MrDarcy

    MrDarcy Well-Known Member

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    Have you looked at their DCP on the Council web site ? I just had a quick glance and some forms of strata sub-division appear possible with multi-unit development, but would depend on how the development was approved.

    http://www.pittwater.nsw.gov.au/__data/assets/pdf_file/6024/P21_SectionB_DCP.pdf

    It is not an easy one to read.

    Considering the cost of the development and the increase in value sub-division would allow, I would be chatting to a local town planner.
     
    Last edited by a moderator: 8th Feb, 2007
  7. Jacque

    Jacque Team InvestEd

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    Hi Steve

    Unfortunately, you've hit upon one of the many Sydney councils who may no longer allow separate titling for dual occupancies. Not much point in actually building a duplex, then, as you always have to dispose of it as one dwelling. I'm not familiar with Pittwater council, however I do know that nearby Warringah council no longer permits dual occs. Refer to their website and read the WLEP (Warringah Local Environmental Plan 2000) for some light reading on this topic: http://www.warringah.nsw.gov.au/plan_dev/documents/Your_Questions_Answered.pdf

    Going to the Land and Environment Court takes lots of money and loads of time, from what I've learnt of the experiences of those around me who've done it previously. You really need to take this into account when developing, as the holding and legal costs can pretty much wipe out any profit you may have had coming to you.

    Has your relative considered building two luxury homes on the blocks instead? This may be an alternative to the townhomes and more profit may well be extracted, depending on build quality and demand for this residence in the immediate area.

    MichaelWhyte is an expert on Pittwater council, having recently begun a dvpt there himself. Hopefully he might be able to help you out with some further info.