Hello,
I am thinking of taking on a subdivision project as my next endevour and am trying to figure out the best way to go.
What are the pros and cons of keeping the existing house, subdividing the land and building a new one on the back? Obviously there is the rental to think about but this isn't a huge amount in the big scheme of things and the house can be rented out while permits and plans are being submitted.
It seems to be a bit trickier to do this type of subdivision (probably a battleaxe unless I can secure a corner block), especially with the driveway width which the council of the area I am looking in tell me needs to be a 3m minimum.
I am finding it pretty hard to find the right type of block which can accommodate a subdivision while keeping the existing house and am wondering if it would be better to just knock the existing house down and build two new houses on the land. Is this much more expensive to do or does it balance out with the end sale?
If anybody has any thoughts on this it would be greatly appreciated.
Cheers,
EmmyHow long is a piece of string?
If you buy a block and have to demolish the house, you have lost the value of the old dwelling – so you will either need to find a run down house or an underpriced block. You are then faced with the construction of two separate houses or a duplex.
If you find a site where there is a 3 m setback for the driveway, or a cornerblock, then it may be possible to work with the existing house.
You will have to do your numbers for each scenario on each block to see what works for you.
Generally if you knock down the existing and only build 2 dwellings you are really paying for over priced land and would be better off just buying a block of land. You will ultimately lose out.
Battle Axes are out there you just need to be patient as they are obviously popular. Put your name down with agents with specific details as to what you are after. If it was dead easy everybody would do it. You may even be able to pick one up that has a DA which would save you time.
All the best
Thanks guys,
Makes total sense. I need to do more research and number crunching but I can see the logic behind your answers.
Fredo – What is a DA?
Cheers,
EmmyDevelopment Approval (from council)
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
What area are you looking at?
Frankston
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