Ok guys, I’ve been reading the forums for a while now and have read some great stuff. I have a real problem, hopefully some of you can help me with. We are looking at a property in Victoria which has two dwellings on the block, a normal house and a four room “studio”. The problem is, the studio was built with the specific intention of housing the owner’s elderly relative, and as a result it has been specifically worded by the council that it can only be occupied by a relative of the owner. The numbers stack up nicely IF we were able to rent the extra dwelling, but from all reports, the council will not allow this. Has anyone heard of/dealt with this before, and if so, what was the outcome. Would be keen to hear anyones thoughts/ideas on overcoming this hurdle.
Cheers
Ash
Hi Ash,
This seems weird to me, is the studio attached to the main house? Do they share common services (e.g. water, sewerage?) I presume they do if they are on the same block, but people rent out different rooms to individuals all the time!!
I would be talking to the council and get them to explain to you exactly why the contract is worded in such a way. Sorry I couldn’t be of more help.
Good luck!!
krsask them, what happens if the new owner dosent have any elderly relatives?
they can’t assume that everyone has the same circumstances.
this sounds like a great opportunity as it would be putting alot of people off.
go to the council and ask them, what would happen if you rented it to a tennant, since the original circumstances when the house was built is no longer there!
what legislation would they use to terminate your leases if you had it rented out?
We buy properties in Adelaide. Immediate Cash Settlements, No Agent Fees.
[email protected]
phone 0412 437 582How are they ever going to know the relationship of the occupant? Maybe the uni student can be your “cousin”?
I am guessing that this was done for the DA to build but cannot imagine it would be rigidly enforced – perhaps you need to seek legal advice?
Simon Macks
Residential and Commercial Finance Broker
***NODOC @ 7.15% to 70% LVR***
[email protected]
0425 228 985Comments may not be relevant to individual circumstances. If you intend making any investment, financial or taxation decision you should consult a professional adviser.
ashb23,
what has been constructed is allowable given a reasonably large block of land – but it is not on its own title and does not have individual services (let me know if this is incorrect)- its not meant to be a commercially let dwelling if it is to comply with the specific planning guidelines.
also, i think you will find it is in a low density residential zoning – multiple dwelling not permitted.
hence a bank or other lender will only take into consideration income derived from the main residence, and will treat with caution the ‘second’ residence – in reality, they probably don’t even want to know its there.
as for how to overcome this, well, for a start how much deposit do you have? large deposits seem to act as a HUGE risk mitigator to banks.
cheers
brahms
Purveyor of Fine Finances
aka Mortgage Broker BrisbaneCheers guys,
Apparently in this council, this is quite common – they allow a second dwelling, but only for specific purposes. I know this because my sister recently looked at another place, for that exact circumstance. The owners of that property were told that unless they sold to someone in similar circumstances (ie: elderly dependant), the second dwelling had to be removed before the house could be sold. I’m not sure with this property, but I will follow up with the council what the restrictions are and how they plan to enforce them. Also, we were hoping to finance 100%, but have a LOC, so can borrow only 80%…
I’ll keep you posted on any development this week.
Thanks
Ash
G’day ASHB23,
I’m in WA but we have similar situations happen here. The main purpose is to reduce costs with the local council and also service authorities such as Water Corporation. A way around this may be to offer to pay the fees to have the ‘conditions of use’ changed for the separate dwelling from ‘Granny flat’ to general use (for renting out) and to pay any fees due to the service authorities. It’s worth a go anyway.
PudYeah, I looked into this. Apparently the reason for the restriction is that you don’t need a full building permit/property inspection by the council. I contacted the subdivision board, and they say it is one parcel of land, yet the council rate each property seperately, but wont allow the block to be classed as a dual dwelling block. (Don’t you just love councils – they get their cake, and eat it too!) They are also about to introduce a law that doesn’t allow blocks to be subdivided under 2,000m2, so chances are it can’t be subdivided. I’m at a loss as to what to do next… any ideas? Does anyone know any good solicitors in Vic which I could contact? I don’t want to let this one go just yet…….
You must be logged in to reply to this topic. If you don't have an account, you can register here.
