02 May What to Consider When Buying Land With an Approved Planning Permit
I thought I would share a couple of things to considering when purchasing a property with an approved planning permit already on it. This post is especially relevant when you are considering a site for a multi unit development.
Of course there are many checks and balances that you will need to do, including a feasibility to make sure the profit is there and that you can finance the deal. This post is focusing on some of the items to consider that relate directly to town planning.
Check whether the plans have been endorsed by the Council
An approved planning permit contains two parts, the planning permit which is a document containing the conditions of approval and the endorsed plans. Make sure that you are given copies of all final documentation. If the plans have yet to be endorsed by the Council, make sure that you have copies of the plans that the Council made the planning permit decision on and review the planning permit conditions to make sure you are happy with everything. You will also need the contact details of the designer, for them to make the necessary changes to the plans. You should also check if there will be any additional costs for this.
If the plans have been endorsed, make sure you receive the original signed copy of the documents. As many Councils are signing plans digitally, this is becoming less of an issue, but you want to make sure you have a full legible copy of the plans for the building stage.
Check when the permit is due to expire
This is really important. Once a permit expires it can’t be revived and a whole new planning application will be required. It is important to note that the expiry of the permit relates to the original date of the permit. Even if there have been amendments to the planning permit, the original date of the permit may still apply, so make sure to check the permit expiry date carefully.
If the permit expiry date has been extended by the Council, make sure you get a copy of this approval as this will be your record of the new date of expiry.
Check that you like the plans
This may seem obvious, but designs and tastes can vary widely and changing the plans can be costly. The cost of amending plans is generally the same as for a new application, and the process and timeframes can be similar too, so it is important that you like what has been approved or have factored in the time and costs to change them. This includes consideration of whether the approved development meets market demand. Perhaps speak to some real estate agents or local builders, or look at other current developments for sale to make comparisons.
Check the building cost and make sure all the numbers stack up
Seek out quotes from local builders based on the plans. Also research similar sales in the area to make sure the numbers work for you. This also relates to the item above, as if there needs to be changes to the plans to reduce building costs, the cost of amending the plans (both time and financial) should be factored in. It is also better to try to bundle all the amendments to the plans together to avoid having to pay multiple council fees and reduce timeframes.
Hopefully this has given you a few things to research and think about before signing on the dotted line to buy a property with an approved planning permit. If you are considering a property for a development you can always get in touch with us to discuss it further and make sure it fits your criteria.