Just wondering if anyone has had any experience, or can offer any advice on converting a house into 2 liveable units. (ie, one upstairs, one downstairs, with the intention to live in one whilst finding another property to do the same with)
I'm assuming that the council would need to approve such a plan, is this a major difficulty? Could this be included in a financial plan for the bank?
Makes sense in this climate to be able to claw back the amount coming out of own pocket, would be nice to focus on something other than the current doom and gloom.
Thanks!1. Check with Council zoning provsions. Check car parking requirements, separate driveways etc.
2. Discuss with bank as they are using the property as security.
3. Ask a reputable Building Surveyor about fire separation requirements under the Building Code of Australia. Also consider separate water meters, additional garbage bin, additional mail box, spearate pedestrian access. Noise transfer between dwellings.we specialise in dual living houses, in fact its all we have done.
its very difficult to get council approval, but a draftsman I used explained the loopholes. A 2nd kitchen downstairs is actually illegal, so he called it a 'wet bar' and it got approved.
insurance is difficult, as are bonds for tenants. theres also issues with fire regs, noise, parking, clotheslines, water pressure, water heating, electricity, cable, phone lines…………
rental managers dont like dealing with dual occupancy.
we bought, converted to dual living, then sold……… 3x.
its a great way to add value, but difficult to rent out in reality.
we found the theoretical high rental income helped a lot with bank loans and also valuations.
Contact your local council and if possible ask to speak to a Senior Town Planner. They will advise you if this is possible and exactly what you’ll need to do to make sure that it complies with their planning regulations.
Each local authority has different planning requirements so it’s important to check with your local council as to their specific requirements.
Adrian and Amber
http://www.RealEstateDevelopmentClub.comExcellent, thanks for all the advice.
Have been finding a number of properties around the Brisbane area that are already on the way to this kind of set up, but would hazard a guess that legally they're still a long way from compliance. Have been getting rather empty answers from REA's when questioned further! (are there any genuine agents out there?)
Further to this subject though – if an arrangement was met with a "flatmate" / tenant to rent a portion of a property, for example a granny flat set up, could this portion of the building be treated as an IP?there could be land tax issues also.
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