Where is the property?, seems cheap for a 6-7 unit site.

with regard to the talk about falling property prices,
to get back to basics, what is the driving force in falling prices?. We hear people saying they will fall 30 %. Where is the nuts and bolts calculations to show this prediction is anything more than a wild guess. While rates are low and there is at least some demand for housing in our capital cities what will be the real cause of a price drop?. Are there really going to be enough property owners in such a desperate situation where they will have to sell at below cost to survive. Obviously some are in this position (myself included with a recent development). Many in the development business are in this basket but is that enough to cause a collapse in existing house prices. Prices in discretionary areas such as holiday spots and high end stock have copped it but do these make up enough of the sale turnover to effect the bulk of the market?

Im not saying things are not tough at the moment, but there seems to be alot of extreme predictions being thrown around im just after a little bit of old fashioned maths to back it up. I know the figures aren’t everything, fear and sentiment are a major problem at the moment but i feel this will reduce over the next six months.

mouldy ceilings sounds more like a leaking roof than something a tenant may have done.

The rusty handrail is more likely poor surface preparation or no priming of welds.

Picket fence falling apart is again most likely age or lack of maintenance.

How are these items the fault of the tenant or the manager?

Many landlords on here expect to just sit back and accept the rent without having to do basic maintenance on the properties.

herbpeterson is correct
T
here is a big difference between the sewer line to the house and the main sewer.

Its really the easement that you need to look at.

I think you would most likely renew the old line if it is old anyway, you can build over this sewer line to the old house but there are a few restrictions, such as the sewer must have an IO (inspection opening) at the point it goes under the new unit and the point it comes out. It also must travel in a straight line ie : no bends under the new unit.

Any plumbers out there got any info on this?

Jarrod

you are correct,  you cannot usually build  the house directly over a sewer line.

Im assuming you mean it is the main sewer line servicing the street, not just the branch for the existing house.
Although you cant usually build on top of the sewer you can build close to it. By using concrete piers bored down to close to the sewer depth you can build very close to the sewer. You will need consent from the authority that controls the sewer easement.
Depends on your situation but i would imagine rerouting a main sewer line would pretty expensive, more than putting in concrete piers.

Depending on the proposed layout of your units you may be able to work around the easement. I have just completed one where we got permission to build decks and pergolas directly over the sewer line easement. Also doing one now that has the rear wall of the unit 800mm horizontaly from the sewer line which is 3.9metres deep.

Keiko,

Not sure of your background or skill but, tilt slab panels are not something to be attempted by the inexperienced. They can be very dangerous and have resulted in deaths through wind gusts or incorect bracing equipment.

They do appear to be becoming more popular, even in domestic construction, but be careful !!!

gday skuz,

I totally agree with your thoughts on the area you are looking at. I live in the area and can tell you the convenience of the freeways, shops and transport is great. The capital growth is bound to be greater than in the new estates.

Externally the house seems to have a nice character to it, and the roof is a bonus, probably save you about $15000.
The weatherboards look to be in pretty good condition for their age, would need a bit of elbow grease from you though, and maybe a few replacements.
Internaly it does require a substantial amount of work. But alot of it is simply striping out the old stuff, which you can do yourself. There may be structural damage but difficult to tell at this stage. Dont assume cracks in plaster mean a serious problem, these houses are very old and are bound to have some movement in their foundations. From the photos i would say you would remove everything except the floor boards. One benefit to stripping the plaster is it allows you to insulate the walls before replastering and gives plumbers and sparkies better access (less cost) for their work.

I have noticed a few people make suggestions regarding gaining trade experience through volunteer work. I cant say I agree with this idea, for a number of reasons:

– A little bit of knowledge can be a dangerous thing.
– You are probably better off working weekends earning money in your regular job and using this to pay experienced people to do the work, at least you can get then you can get them to fix any stuff ups.
– Most trade jobs look simple when you watch an experienced tradesman doing it, its not until you hit  a snag that you realise it might be better paying someone to do it. eg: watch a pair of plasterers hang a 6 metre ceiling sheet then try to pick one up yourself 

Not saying dont have a go at reno work but I have seen the result of many people taking time off from their job and spending three days to do a job a carpenter could have done in one day.

I do advise that you read up on anything to do with building and get advice from numerous sources.

Hi aaabbbccc,

You will have to get plans drawn up and get council consent to the subdivision. Have a look at other subdivided properties in the area on similar size lots to see what you can possibly fit on your site.

I have recently completed a four unit development but dont have all the figures on me at the moment.

We built four 30 square townhouses with landscaping and driveways for about $1.6m
They are of a high quality so you may reduce it a little by using lower range products, but i doubt you could save more than $30k per home as most costs are fixed.

Be aware the costs never seem to stop, fees and charges with every authority you can imagine. We had an unexpected charge of $6000 to upgrade the power supply in the street.

An important tip is to read ALL letters from council or any authority and act on all of their request for info, they hardly ever overlook things so act swiftly on any problems. We had more complications in the paperwork side of things than the actual construction.