Hi
I was thinking of finding large blocks in perth and just knocking down the house and selling of the two blocks as land. Wondering if ANyone has any exp at smething like this. and could share the opinions.
Thanks
Dave
Mad-Cat,
I have considered a similar strategy, but from my research, the costs involved would mean you would need to develop the blocks rather than just selling the land.
Firstly, the large blocks that you find must be zoned for sub-division. If the zoning is there, it will be reflected in the asking price. This is why basically sound houses are quite often for sale at “land value” as two or more blocks of sub-divided land are more valuable than a single old house on a large block.
Secondly, you have costs involved in purchasing the property on top of the sale price. The biggest additional cost being stamp duty. Also, settlement fees.
Thirdly, you have costs involved in holding the property and preparing the site, i.e. interest charges, demolition costs and site preparation costs. Applications to councils for sub division can also take some months for approval.
Finally, you have agent’s fees when you sell.
I think you would be lucky to find many blocks that would be profitable once you factor in the above costs.
I would be intersted though to see if your figures disprove my negativity.
Good luck,
BillyMad-Cat & Billy,
Last night I drove past two blocks that were side by side in Nth Perth, each block had a fairly old house and on each “Auction” sign it had “Triplex Blocks”, so as Billy said it’s always land value on these large blocks with older run down houses.
Actually all around Nth Perth, MtHawtorn and Mt Lawley they are cramming 3 and 4 town houses onto these large blocks.
Cheers, Doug
So if u had to build would dose that make money?
how much would 2 units cost to build?
if u keep the land in your name and have a block on 800 can u just build two houses and rent them. i know u could never sell them indervidually but could u do that?
What zoning is the land? If zoned R20 then you can build 2 on about 1000m2, R30 about 750m2. Really depends on the local council and zoning. That way, you can get either strata or green title and sell them off, depending on local council requirements for the block size and type.
Have looked into this with Stirling City Council and zoning seems to be black and white. Would also be very interested if there are other ways around it!
Can some one descibe to me the differnce from units strata townhouses green block
From what I understand the difference is:
Green Title – House and Land is solely owned with its own Lot Number on the council DP. Can be done for Duplex, Triplex blocks etc as long as it meets council requirements for subdivision which includes land size, access (driveway), services requirements, etc.
Strata title can be survey strata or non survey strata. Survey strata as I am aware is when a surveyor has marked the property boundaries on the council documentation and works effectively the same as Green title, apart from slightly different consultation requirements if you wish to build, renovate, develop your block.
Strata without survey means the land is jointly owned by all property owners on block with the exception of the buildings. What I have been told is this allows any of the property owners to utilise any outdoor space, although in practice fences are still erected making seperate spaces for each owner. Technically though, they could jump in your swimming pool or climb your tree without trespassings!!??
When you get into townhouses, you then get into company title and strata title which also has its own laws and regulations.
I live in a non survey strata duplex in Perth and would love to know if the information above is 100% correct. What I was told by my RE agent and confirmed by council!!if i had a block that was two small to sub devide could i build two houses on it to rent out if i kept everything in my name?
That depends upon the council and the type of zoning etc. Things such as sewerage affect this. Often the answer is no or there still needs to be minimum land size per dwelling ie: The area I live in doesn’t have sewerage connected, so although we have a big block we are only allowed one dwelling on it until sewerage is connected. We aren’t even allowed a granny flat. We are also in an area where they are perserving natual vegetation so even if we could have a second dwelling we mgiht not be able to have one if it meant kncoing down adult native trees. We’re happy with this arrangement as it protects the lifestyle we want, but these are just some of the type of factors that could affect a council’s decision as to whether you can have a second dwelling, so I think you really need to ring the council of the area you are looking and ask a few questions.
Regards
PKMad-Cat,
If what you are proposing is avoiding the Council zoning issue and building two houses on the block anyway, I would be very wary. Firstly, you can be ordered to pull down the non-compliant buildings if Council find out (very costly!!). Secondly, when you do eventually go to sell, council docs will reflect that it wasn’t approved and cause all sorts of problems!
As PK said above, approach Council first and save yourself some heartache down the track.
I have known a case of an owner builder “subdividing” one large house and renting out, however could not be sold as two units due to zoning!
The short and definitive answer is ‘NO’ !!
You can’t add another home or house…without approval or a building licence…and council would simply reject such an application.
Its based on the zoning of the land / block…and if it not zoned for subdivision ( either strata or green title) then you cannot add another dwelling.The only way around this is to do it illegally….
To do it legally…you would require: a seperate water service, seperate electricity service, the ability to tap into the existing sewer or the requirement to add another sewer junction, etc.
All these service providers will only act if there is council approval first…now you are back to square one…no council approval…no additional dwelling
KP
Thanks KP, thats what I was trying to say but failing miserably!
Originally posted by Mad-Cat:if i had a block that was two small to sub devide could i build two houses on it to rent out if i kept everything in my name?
No Probs JHopper!!
At least you tried…[biggrin]But MC specifically said the block was too small to sub divide…hence it has to be No.
The only way around this, or to confirm this, is to ask, or petition the council and see if they will change their mind ( despite the zoning ) else request a special dispensation, via the Minister’s Department.
But the simplest solution is to follow the existing zoning…and comply with it.
KP
quick post note on demolishing old houses, check thouroughly with local council as there are many in Perth being pains in the rear as of late, noteably subi, Perth & Vic Park, the latter i can attest to firsthand……. but got my way eventualy, albeit 8 months behind shedule…
scottee
dreams are something you dont believe can happen
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