Im looking at a property with 660sq meters
The house is a bit run down but the plan is to knock it down in a few years and build units.
Next door has done the same thing they have put 3 units on there land but there land is 672sq.Whats the minimum sq for a townhouse or unit?
Rang the council and they said its a low density property and it should be fine to put units on it
Spoke to a builder and he said if next door has done it you should be fine
But its 12sq smaller so anytips? Thanks guys
You really need to discuss with your local council , all councils have different requirements.
Been saving since 16 and its my first step in to real estate dont want my money to go down the drain! Any advice would be much appreciated!
If the question is what is the minimum squares per townhouse you won’t get an answer. It’s different everywhere and for every council. Plus you’ve already spoken to the council – that’s your best bet.
Plus just because a place can be subdivided doesn’t mean it’s a good investment – if that were true you’d have other people bidding (upping the price) or the owner would do it themselves, especially if the neighbors have done it.
Hi Danny,
Been saving since 16 and its my first step in to real estate – dont want my money to go down the drain!
I can understand the excitement !! This sounds like a big step for a beginner – but then, is it really?
It may in fact be a simple buy/reno/rent to get funds coming in, and the subdivision can follow down the track. So, assuming that, let’s concentrate on the first part first :-
1. What are your goals, and what path are you planning on using in real estate investing?
2. Have you become very familiar in the area you are looking to buy?
3. Putting aside the subdivision, is this a “good buy” based on the asking price, location, potential, condition, expected rent, demographics, etc?
4. Do you have finances already in place, or at least discussed? Has a lender given you a limit to how much you can borrow? Or are you using a Mortgage Broker?
5. Have you “schooled yourself” on property investing – been to seminars, read books, planned your path, etc?Good on you for having saved a deposit – and I agree, that you don’t just want to see it go down a drain. Hence the “third degree” my friend. I’m not attempting to derail you at all (quite the opposite) – just putting a focus on what needs to happen ahead of buying just any old property.
There is lots of good “starting information” on here. Start with the “Training Centre” on the home page. Steve and Jason have put some great articles together that guide you through many of the pitfalls. Look at the “stickies” for other good sources of information. And just immerse yourself in this place where people are doing what you want to do – i.e. it is a great place to be for one on your path.
This house you are looking at could be a good deal – or not. With the information presented, it is impossible to say. But, even if it proves to be a good deal, is it a good deal FOR YOU? That depends on where you see your path going (e.g. if you hate doing renovations, you wouldn’t buy this place surely!!)
Come back to us with a bit more, and let’s see where that leads …..
Benny
Sometimes “if next door has done it” is not a good thing. Some councils have rules about not developing too close (say within 50m) of another multi-unit development. But assuming the builder you spoke to knows the area, proximity may not be a problem.
Minimum lot size requirements only pertain to freehold (Torrens) titles. If it’s a shared title, which this development likely would be, the number of units you can fit will mostly come down to setback and private open space requirements.
Your best bet is to put together a visual concept of what you’re hoping to do and take it in for a pre-lodgement meeting with council. Depending on who you meet with, you should get a pretty good idea of what’s possible and where your potential road blocks will be. If nothing else, it will be a great learning experience.
Jason Staggers | JasonStaggers.com
http://jasonstaggers.com
Email MeTo be honest I wouldn’t bother with a project like that for a first buy, it probably is already overpriced I mean depending on what type of units you plan to build single storey or 2-3 storey it can cost a lot of money and if you end up borrowing most of the money from a lender you will be under a lot of pressure to sell when it’s completed just to make up your loan repayments because it will be interest only for a developers loan. Also you can waste a lot of time and money in building if you don’t know what you’re doing and are inexperienced. Start off small and build your momentum. Never be afraid to ask for advice because there’s plenty of helpful people here.
I was a lot like you when I was younger jumping ahead and had big ideas for my first purchase but I figured I’d do something I could be comfortable with I put a 50% deposit on a $300,000 house 3 years ago to create a positively geared property because I didn’t want the burden of paying for the property out of my own pocket now here I am looking at my third purchase . If I went with some of the more extravagant ideas I would still be sitting on the land losing money to interest repayments.Now if the house you’re looking at is in itself a good money maker and its naturally positively geared at 80/20 LVR then I would then consider buying it because you don’t want to complicate your first property just get it done and out of the way because it’s your biggest learning curve. Second learning curve comes later when you have to figure out how to keep buying properties without changing your lifestyle excessively. Just keep it simple
Every council is different – no one can give you that advice without knowing any of the specific details and even then it’s unlikely anyone here will know the specific ins and outs for that council and neighbourhood zoning.
Speak with a local townplanner or surveyor who will let you know. As others have mentioned, with next door being developed it can actually be a hindrance as councils sometimes like proximity between developments.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hi guys ended up buying the place!
I spoke to an surveyor he said if i demolish the place i can get 2 dobule story town houses and 1 unit.If i keep the house i can build 1 behind it.Its 20meters from a primary school
10min walk to a highschool
15 min walk to supermarket and train station.So just going to paint it when it settles bit of touch ups.Agent said if i left it the way it is ill get renters in straight away! Which is a good thing!
Thanks for your help!
Congratulations, Peter. That is great news !! Will it be positive geared once rented at your projected rental? Once it is all settled, share some of the numbers with us. It will be good for others starting out to hear that such deals are still “out there” in the current climate.
Benny
Great work Peter – it’s good to see people do their research and then commit to make a purchase!
I agree with Benny, when you have a chance it’d be great to see some numbers (and even a pic or two ;) ) of your purchase when it’s all settled down.
Corey Batt | Precision Funding
http://www.precisionfunding.com.au
Email Me | Phone MeInvestment Focused Finance Strategist - servicing Australia-wide
Hi Peter,
So just going to paint it when it settles bit of touch ups.Agent said if i left it the way it is ill get renters in straight away!
With a bit of water under the bridge, how did it all go? Interested folk would love to hear from you…. ;)
Benny
You must be logged in to reply to this topic. If you don't have an account, you can register here.
