We are thinking of converting an IP house into a duplex if at all possible.
The house is 1960’s and goes accross the block.
We are thinking one carport each side amd house in centre.There is enough room to do this and basically divide house straight down the middle. Mirror image each side.
The land is classified Historical mix use.
Has anyone had experience with building a duplex?Casey
Great idea as this can really increase your rental returns dramatically. Basically you need to look at the capital gains/increased rate you gain against the cost of the renovations.
Is the house in a main street (thought maybe because of the mixed uses zoning). If it what about converting to commercial premises (doctor,lawyer, etc). Rental returns are ususally higher than residential.
The other thing to look at would be strata titleing; so that you could sell off one or both halves in the future. You would need to check with your local council.
Casey,
As Dingo suggests, strata titling may be a good and profitable idea.
I would however go one step further (or should that read ‘one step back’ ?) : After making due enquiries from council as to whether strata titling is possible and what is required you will need to spend some money to satisfy council requirements.
These requirements may involve spending money on fire protection, actually erecting the carports, supplying some additional landscaping etc, etc.
Now the problem is that the moment you have two
seperate titles the property will attract two lots of council rates, water rates etc.The advantage of having two titles is that it will provide you with more manoeverability financially speaking and, as Dingo suggests, may likely be a good investment for the addtional money you need to spend to make it all happen.
To avoid paying two lots of rates etc. however you may perhaps decide not to actually lodge the Strata Plan with the relevant State Government for registration as yet until such time as the need arises for you to have two seperate titles registered.
Please do make enquiries so as to verify what I am now saying : I believe that, the moment you’ve got the Town Clerk’s signature actually placed onto the Strata Plan, the pressure is off as Council’s endorsement of the Strata Plan remains in force even if you were to lodge the Plan for registration in say ten years time.
You need however to verify the above with both the relevant state government department (which registers titles) as well as with council itself.
Pisces133
Thanks for replies. Have found out from Council that the house could be demolished as it is not heritage listed 1960’s and we maybe able to build new house, possibly units etc in its place.
The land is not large only 541m2.
It is on a main Road. We are also thinking of dividing the house down the middle with one carport each side.
Put in two small kitchens/bathrooms/laundries.
The kitchen would be IKEA style comes in flat packs so doesnt cost a lot.Leave it on one title etc and could be used as
Duplex, Granny Flat situation,teenagers retreat etc.
We think that it would be cheaper to do the renovations instead of building as the bathrooms, kitchens would be used by re figuring existing walls but will have to add on two laundries.
Do you need council approval to renovate inside?Renovate inside ?
It depends on what you mean by ‘renovate’.
If there are structural alterations then, strictly speaking, you need council consent.
If you are talking about painting or putting in a new kitchen I doubt you need consent. In any event who would know you have made alterations ?Nevertheless I guess that the best place to raise this question is council.
Pisces133
Casey, I see you are talking about leaving it as one title.
Now the dangerous part of your plan is not applying to council for a (strata title) subdivision.
If you have got two titles the value will be considerably more.
You may think that you can always do so later on.
Better to spend some money on a surveyor and applying for a subdivision now so that you are guaranteed to have a subdivision if ever you want it as there is no guarantee that council won’t change the rules on you.
Pisces133
Casey
I did this to a large house and followed the criteria set out in Residential Development Control Plan No 58. In short my building has to retain the appearance of one dwelling. Could only have one front door, we had access to the second property from the back. The floor space on one dwelling does not exceed 60M2. 2 car spaces shall be provided for the larger dwelling and 1 for the smaller dwelling. The rent is good on Flat and 3/4 m.v on main house as son & d.i.l. live there. Good luck.
Regards Joy
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