I’m looking at buying an R60 block that currently has a very liveable house on it. I would like to eventually put 4 new houses on it, demolishing the original.
Can one develop the back of the block first say, with 2 houses, while living in the front. Then, at some later stage, not necessarily straight away, demolish the front, replacing it with 2 new houses.
There is a ROW at the back for car access and about 1 Metre space to both sides of the existing house to allow the rear owners to access the street for mail/rubbish.
It is in the Town of Cambridge, Perth.
Is it allowed to do it in stages as indicated? What happens to the zoning? Do I initially make it 3 titles, 2 for the rear and 1 for the original, and then later apply to divide the original into 2 further titles, or must I divide it into 4 titles up front. I’m worried about issues, like rates and water. For example, if I must divide into 4 up front, so that there are 2 titles over the front section where the original house is, will I be hit for 2 sets of council rates, water rates etc,. even though there is just one house there until the back is fully developed first.
Hi ladybird
Yes staging a development is common especially on the bigger developments.
We are often asked to provide funding on staged basis which makes the bank feel a little happier depending on the size of the project.
In saying that for 4 houses you might find the costs will outweigh the benefit. it is likely that Council will charge more for a staged application to start with.
Secondly, your builder will prefer to build 4 in one go rather than 2 and 2. His trades and subbies will not want to return to a job more than they have to. This extra cost will be pased onto to you.
Then you have the marketability issue. Trying to sell 2 new houses at the back whilst construction of the front two is going on maybe less desirable to a buyer.
Tell me do you need to loose the house?
Can you not just move it and keep it on a separate title. Maybe a battle axe block.
Cost savings may outweigh the marketability issue. You can live on site whilst the proejct is taking place then renovate the house on its own separate lot.
Email me if you have further details
Cheers Richard
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Richard Taylor | Australia's leading private lender
Have done similar Ladybird. Bought an old house, rented that out until aprovals through. Designed two double storey townhouses. Built the back one and shifted in. Now will demolish old weatherboard and build front townhouse Approvals took 2 1/2 yrs which I thought exhorbitant but have since found out pretty normal. They were for two years which seemed ample but all of a sudden I have to really get going on the 2nd one. I am starting that within weeks. My plan is to sell this one in Feb with 3 mths settlement date (normal here) and the new one will be finished enough for me to shift in (Are you listening God?) My drafting guy told me once council approved the building plans, then the subdivision goes through as a matter of course. I am in that process now, so I hope he knows what he is talking about.
If I wanted too I can pay $300 and extend the permits for another year. I paid use of extra servies immediately of course but didnt seem to get extra coundil rates until the new years ones were issued. The local council building dept would tell you this as they do it all the time. One thing I didnt think about was that no-one will pay full price for the townhouse I’m in while the front one notfinished or under construction thats why my front t/house has to be a least at lock up when I put this on the market with the garden all done and not looking like a building site. Think plumbing too. I had to have the original sewerage from front house rerouted and it may be more economical to get a lot of the plumbing in for the project from the start. There are big start up costs for services too even though you have not subdivided. $2000 for water, gas under the road to back, etc.
But the bottom line is, if that the only way you can afford to do it – go for it.Fern
Thank you both for your replies. I’ve been away, so will need some time to digest.
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