Hi all,
My friend is thinking about purchasing a property in NSW. He noted that the garage has been converted into a dwelling but looks suspicious ?legally built. Following the inquiry, this is an extract letter from the council's developmental officer sending it to the current owner.
"You have failed to comply to the conditions specified in the schedule attached to Notice of Determination of Development Application dated in 2001 and a Construction Certificated has not been obtained to permit works required to convert the garage to a dwelling.
You are required to:
1. Submit an application for a Construction Certificated including proposed driveway crossing, stormwater management and works compliant with the Building Code of Australia 2007
2. Provide professional structural engineer certifying the structural adequacy etc…."My questions are:
1. Was it difficult to rectify the above mentioned problems?
2. How much the cost and time required?
3 Has anyone had similar problem i.e is that worthwhile to consider buying the property?The reason he is keen to buy is good cash flow as both dwellings (i.e. the coverted garage and the actual house) being rented.
Thank you
If the 2nd dwelling hasn't been approved by council, then it isn't a dwelling it is a garage. The income generated is thus from a single dwelling and should be priced as such – if the agent is representing otherwise it is misrepresentation unless they can produce the 317A (Occupancy certificate).
You may make an offer conditional upon the vendor providing the occupancy certificate or an offer with a bonus of say $20k to produce the compliance (if you know that it doesn't have that certificate at present and there is an outstanding order on the property).
Issues pertaining to conversion of a garage: may include waterproofing (usually single skin brickwork, no membrane under slab), no smoke alarm, illegal plumbing to kitchen/bathroom and the list goes on). Yes it will cost a fair bit to rectify if there are major problems with the 2nd unit.
My advice is if you don't have experience in the field of dealing with councils it's probably not a great idea to go down that path as it sounds like trouble and you may be spending too much time and effort to rectify the issues.
I'm doing a subdivision now and It's a headache.
Further inquiry to above property…
Apparently, the owner has already requested the MBA Building consultant to review the proposed garage alteration.The plan has been drawn in 2004. It includes… as mentioned.. fire-rated wall, floor tiles on water proof cement, continuous waterproof membrane on concrete slab. The garage floor itself is concrete slab.
It also requested the owner to build 5000 L below ground water storage… Not sure WHY?I am thinking about making offer based on the value of the 1 dwelling..
But I am also afraid the cost will blow up trying to fix the problem and insurance issue (as the 2nd dwelling currently rented)Thank you
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