hi my name is maws . im new on the block so please be patient with me ok
we have bought a property with a house to one side of the block
the land size is 1240 on the title it has a subdivision avaliable it also has a covenant saying that no other house can be built on the land we are applying for the covenant to be removed we have been to councel they said it can be subdivided my ideal choice is to put units on it pull down exsisting house or subdivide and sell that piece of land pay off mortgage if i subdivided sold land
can i then sell off my back yard the house sits closer to the front of the property councel says build behind exsisting house sorry this is so long
cheers mawsHi Maws,
Welcome to the forum.
There are a lot of considerations in answering what seems like a simple question!
Firstly, the requirements for subdivision vary from state to state and council to council.Broadly speaking, if the covenant can be removed or otherwise overcome, there is nothing to stop you subdividing the land and selling a part of the land. It may be necessary to have plans approved and thus the property may have to be sold "with plans and permits" attached.
As to whether you subdivide and sell the land or demolish and build units depends on your own situation and preferences and of course the financially viability of the different options.
Good luck with the project.
Hi Maws.
While the council may approve of subdivision in their area, your particular development sounds as though it was 'protected' with certain restrictions by the original developer. Sometimes these may be overturned, at least that is what I've been told in my area where we have been investigating the same thing. If the original developer no longer exists then I think your chances are better. You could get a local conveyancer/landbroker to advise you as to whether its been done before or may be possible. Looking at what is in your vicinity currently being built will give you some idea of the chances!
Regarding what to build, the council will be able to tell you what is allowable regarding block sizes, types of dwellings etc.
Selling off some land to reduce your mortgage is a great idea, or you could use the land to build yourself and create investment property.Tell us how you go.
G
Hi Maws,
Depending on which state and suburb the cost for unit development can be a lot cheaper than subdivision because you can share the services (separate meter) such as power and sewage. Unit title requirement can be as little as sharing the letter box in the common area. Another thing to consider in your design is to have separate driveway for each dwelling.
All the best.
hi guys thanks for you helpful tips
i live in melb the basin we already have two drive ways there are 20 two storey town houses down the street
hi patrick when you say devalopment do you mean build town house on without subdividing going by the town houses around us i think we could fit at least four im not sure about the finance though we have an investment property as well
thanks guysI have been reading a lot of Donald Trump lately and he says to “think big”.
He said it often doesn’t take a whole lot more to build some units than to build a house. It is definately worth looking into, especially if you want to strata title them and sell them later on down the track.As has been said above…it depends on what you want.
One of the things to think about with building units is that you will have to knock down the current house. This means your rental income during construction will be $0. If you can afford the repayments then this might be fine, but if you need the rental income to afford repayments then you might not be able to do this.
Good luck with whatever you decide
Ryan McLean | On Property
http://onproperty.com.au
Email Methanks but what does strata title mean .and do you know how these projects are financed as i said we have our own home which is the one we are talking about pulling down and our investment property the idea of building units appeals to me
cheers mawsmpave1 wrote:thanks but what does strata title mean .and do you know how these projects are financed as i said we have our own home which is the one we are talking about pulling down and our investment property the idea of building units appeals to me
cheers mawsHello Maws,
1. A strata title (in Victoria) generally means a "title in section" that is to say in levels as would be appropriate for multi storey apartments. This definition differs in other states.
2. Projects can be financed in a number of ways. Richard on this forum has posted some great advice on this issue. The important things are always the security (the property and its value) and the ability to service the debt. More advanced financing mechanisms (like market rate facilities) can be used for bigger or more complex projects. In my recent experience residential banking seems to be about minimising risk and there seems to be a desire to shift anything larger than a two unit project over to the commercial banking sector.
3. I'm not completely clear on your strategy here. Are we talking about more than one property – a PPOR and an IP?
hi well that im thinking maybe 4 or 5 town two storey town houses ,after i pull down exsisting house ,down the street there are twenty two, two storey town houses on one block. im in the middle of finding a surveyor to give me an idea of my choices or do i get some one else builder ect the councel says use a surveyor
the house we are in is the one im talking about we have a mortgage on it with some equity if i dont pull it down can i build more than one unit on it and not subdevide it ,all on one title like building in my back yard confusing i know sorry
cheers mawshi guys talking about buying a house when you have a debt against you .we bought our house through west pac with asmall telephone debt which was payed out the phone company gave us a letter saying is was void but the system says we cant remove it from file any way the bank gave us a loan knowing we had it not only did they give us that home loan but an investment loan too since then we sold a property we asked the same bank to refinance the new house we bought they said no we have a bad debt against us how do you figure we are now with a much higher home loan which is over the 9% intrest rate we want to refinance im looking at the moment any ideas
cheers mawsHi Maws
Hate to say constructing 5 Townhouses as you first project is not going to be easy even if you do have approval to do so.
Equity and the ability to repay the loan will be important but as always additional information would be required to assess the deal and analysis whether it could be viably funded.
Richard Taylor | Australia's leading private lender
hi qlds007 thought it might have been a little ambitious well i guess i can always subdivide and pay debts and pay some on home loan .can you tell me the councel says i can subd cut the property in half its 1240 when ive done that because our house is closer to the front with a big back yard can i then sell my back yard cause the councel said subd and build on the back i would have thought to the side as thats where the other half is what you think
cheers mawsmpave1 wrote:hi well that im thinking maybe 4 or 5 town two storey town houses ,after i pull down exsisting house ,down the street there are twenty two, two storey town houses on one block. im in the middle of finding a surveyor to give me an idea of my choices or do i get some one else builder ect the councel says use a surveyor
the house we are in is the one im talking about we have a mortgage on it with some equity if i dont pull it down can i build more than one unit on it and not subdevide it ,all on one title like building in my back yard confusing i know sorry
cheers mawsHi Maws,
You might be well served by seeking some preliminary advice from an architect or designer with planning experience. Understanding your options is the key to understanding how you might benefit from these options. There may be value in the properties that you are not aware of. Alternatively there may be options that you need to put aside for planning or zoning reasons. Generally a surveyor would be engaged to certify the designs later on. Having said that, they are usually able to provide good advice as they've seen plenty of examples.
hi qlds007 thought it might have been a little ambitious well i guess i can always subdivide and pay debts and pay some on home loan .can you tell me the councel says i can subd cut the property in half its 1240 when ive done that because our house is closer to the front with a big back yard can i then sell my back yard cause the councel said subd and build on the back i would have thought to the side as thats where the other half is what you think You must be logged in to reply to this topic. If you don't have an account, you can register here.
