I have found a house with an undeveloped lower level (currently a garage, laundry, bathroom) which could very easily be converted into a “unit”. The lower level is exactly the same size as the upper level, which is 3 bed.
How easy would it be to buy the house, do the fitout, and sell off 2 “units” seperately?
cheers
Welcome back crashy!
[
]Hey crashy, glad to see you’re still around (like your course too so far!!)
Would you not be better off, and certainly positively geared if you ‘build’ the bottom unit, and rent them both out? I have a place at the moment that has an upstairs and a downstairs two bed unit, and they do really well – much better than what a single house of same purchase price returns.
As to how easy it is to strata and sell off, I think it depends on your council. It may not be possible depending on their rules.
Cheers
MelHi crashy
I presume you are referring to a Brissie property.
Depending on the zoning (i assume it is not Res A) you would need a full DA / BA and the a builder to perform the work.
After that you would need to lodge the title into the Dept of NR and get separate title to the unit before you can sell it.
Make sure that the underneath complies with the Building Act or otherwise you may have to raise the house. The reason why a lot of houses have the downstairs as a garage / storage is that they don’t comply.
If you did the work and kept it and it didnt comply you might have a real issue with Public Idemnity if there was a fire and you werent not covered.
Email me if you want further details.
Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
Yikes
did some rough “back of envelope” calcs:
house cost – $315k
interest only loan = $400 wk
each unit rents for – 180 wk x 2 = $360
ie loss $40but selling:
house cost – $315k
building cost – $35k
sell each unit for $200k = $400k
= profit $50kCrashy
Presumably the $35K doesnt include GST on the margin sale?
Cheers Richard
[email protected]
http://www.fhog.com.auThere is no such thing as a problem.
Just a solution waiting to be foundRichard Taylor | Australia's leading private lender
I have found a house with an undeveloped lower level (currently a garage, laundry, bathroom) which could very easily be converted into a “unit”. The lower level is exactly the same size as the upper level, which is 3 bed.How easy would it be to buy the house, do the fitout, and sell off 2 “units” seperately?
cheers
Holey Dooley!
It must be the top of the market if crashy is gonna invest in property LOL
(Just poking fun. hehehe[
])Cheers
Waynecrashy,
1. check out the Zoning of the house with local
Council
2. habbitable rooms: minimum 2400 ceiling height
3. non-habbitable rooms: minimum 2100 ceiling
height
4. Toilet: minimum 900 width clearance>>did some rough “back of envelope” calcs:
……………….. but selling:
house cost – $315k
building cost – $35k
sell each unit for $200k = $400k
= profit $50k<<Just looking at those figures it doesn’t look like a profitable exercise.
Cost of house ($ 315 K) + stampduty, legals, possibly some renovations, surveyor costs, council application fees, holding charges etc ?
Building cost – $ 35 K I doubt that $ 35 K will go very far.
So what additions do you need to make ? Where did you get the $ 35 K figure come from ? Have you priced the alterations and additions ? Care to tell us what exactly is involved and what you think it will cost ?
Selling for $ 200 K each ? Selling costs ?
Pisces133
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])
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