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G'day guys
I've read through a fair few posts and articles of the proposed changes to granny flat laws, but can anyone answer a few further questions I have please?
i've just had an offer accepted on a block soon to be rezoned r40 but it's only 500m2 so I don't think we'll make the grade for standard subdivision requiring 660m2 (unless anyone can tell me that I'm wrong or how to get around this?) but I just happened across the idea of putting a granny flat out the front and started salivating at the prospects.
There is close to 200m2 out the front and down one side of the house so I'm pretty sure there is plenty of room to put a granny flat, but would it have to comply with the same 180m2 minimum and 220m2 average rules for an r40 or is this different for a granny flat? Also does the flat have to share any common walls or entry ways etc or can it be free standing? If anyone knows about the proposed changes to granny flat legislation I'd be grateful for any pearls of wisdom.
Cheers,
Tom.
Cheers, that's the aim.
I spoke to a guy out of Queensland once, a salesman no less, however what he said rings true – the deal of a lifetime comes along every week.
Thanks guys.
I'm talking a discount compared to a similar house in a good condition. The discount will be due to the condition of the property and/or due to the situation of the seller hopefully.
Property Wizards. He seemed to know his stuff that's for sure.
I'm in Perth but I guess the question fits no matter where you are: does Ben Graham's 20% margin of safety exist today? Given that everyone is looking at the lower end of the market and therefore price is everything, you'd assume everyone wants to get in at a 20% discount regardless of what improvements etc are necessary.
edit – these are townhouses/villas not units per se
It's a low socio-economic area with a lot of migrants regardless of what infrastructure or anything may be going to be put in there.
I bought and sold in a suburb near there but couldn't get the resale value required for the development so the finance fell through.
Hi Jenna
Second try, I lost the first post before I could save it…
I tried exactly what you are suggesting in the same council it sounds like. 11kms from Perth, R40, $300k+ for 728m2. I got stuck on the finance and ended up selling for $20k less than I paid for it (I bought March 2008 and sold August 2012 – bad timing, I know). I was unable to get the $600k required to build 3 villas as the banks believed there wasn't enough equity in the deal.
I'd suggest seeing a consultant or advisor to get the right setup from the get go. I've recently seen someone who enlightened my about how it could have been done before even the property was purchased.
Anyway good luck with whatever you decide. If you want some further advice about what I did wrong pm me (much better to learn from someone else's mistakes rather than your own).
Tom.
