What purpose do the pumps serve in this scenario?

The issue seems to be the retention of water. If this is the case, stormwater retention pits need to be installed. What usually occurs is that pits are installed that accept the stormwater before it is discharged into the legal point of discharge. Once these pits are full the stormwater then drains as usual. The theory is that the amount of time it takes to fill the retention pits will defer the discharge until the peak demand has passed.

Unless the water is running up hill, there should be no need for pumps.

Alltheway,

Sounds like the deal could stack up if you're patient and well informed, a couple of considerations in the form of opinions:

1. The TPP should not take too long, as the second dwelling is already there the application is an "as of right" application to sub-divide the land. Obviously there is no discussion to be had about the aesthetic merits and other town planning considerations when it's already built!
2. You can enter into whatever contract you like with the vendor, as long as you both agree to the terms and sign the contract. For example you could request a contemporaneous settlement whereby you align the settlement dates of vendor and purchaser. You are taking a risk and will be expected to underwrite part of the risk.
3. There is a process to follow in having a sub-division certified, so make sure you understand it or engage someone else who does.

You might like to consider making an offer to purchase the property conditional upon the POS being approved within a certain timeframe (often called a sunset) and although you may pay a little more, you'll risk a lot less.

Hope it works out.

Hi Talis,

As ever the rules are different from state to state and region to region.

In Melbourne, for example, there is generally no need for a TPP, but a BP is required, and the dwelling should be for the exclusive benefit of a dependant person.

There are also regulations about the size (specifically the footprint) and how the structure is constructed. It also needs to comply with the relevant building codes.

All that said, I personally believe they are a great way to make some more space, and potentially to generate income….even if it was from another family member or dependant.

As for cheap kitchens or cabinetry….I'm currently in the middle of an "IKEA experiment" and all seems to be working out!
And it was cheap!

Hi qksilver,

You have some great advice already from the folks who have responded.
The type of project you are proposing isn't particularly difficult but it is quite complex

The important thing is to understand a) your intentions, and b) the process involved.
You need a project plan (which you can generate yourself) and some professional advice as to the process.

As Richard suggested, the finance structure is also important. In fact it's vitally important.
I'll add some more detail to your questions below:

– is it easy getting permit to build units in the first place….As has already been suggested it's simple, but it isn't necessarily easy. The devil is in the detail, and ensuring you don't miss anything along the way, or make simple mistakes or omissions that may affect the application. As DWolfe suggested, it's also important to get high level feedback as early as possible.

– what would the approx cost be to build all 3 excluding the land….Very rough figures, using HIA industry standards (and I have heard many differing opinions on this) is for $1,500/m2 for a medium level of finish. So, if we assume 3 townhouses at 140m2 each, plus garaging, landscaping and the other "incidentals" you will encounter, let's say $700,000 +.

– is it easy getting loan with 3 parties together….As Richard said, probably not! However, in my opinion this gets back to the structure and intentions. And also keep in mind the risk the finance provider is taking, and how you can help them control that risk.

– is it easy to sell the units and sub-divide separately once built....Again, as has already been pointed out, the sub-division is generally approved as a part of the TPP. There are still technical issues that need to be covered off in order to certify the sub-division and have the sub-divided and re-titled land fit for sale.

Best of luck with your project.

Hi Sean,

From my own experience and in working with others I believe the key to generating value is in changing the use of the property. This could be by renovating and adding extra accommodation (an extra bedroom and study for example) or by sub-dividing the land.

Getting more value from the land itself seems to be the best method. For example if you were to purchase a property with a sound dwelling for say $500,000, and subsequently sub-divide the land to allow for the retention of the existing dwelling and the creation of a second allotment (or perhaps two additional allotments) this means you and potentially end up with a new equation from the same land.

Existing residence on the smaller allotment might now be worth say $400,000, but you would have an additional allotment with a value of say $250,000. It may or may not be beneficial to build on the second allotment, this depends on your own goals.

Auction houses like Fowles are a good source as long as you know a) what you're looking for, and b) what the stuff is worth. No use buying stuff just because it's cheap. Most major cities run auction adds in the Saturday papers.

It does vary in different states, but it's great location specific design advice!
In Victoria, for example, double garages should generally be 6m x 6m, but there are also different rules for uncovered, covered and enclosed vehicle spaces. And moreover, different rules for car spaces depending on access.