Hi there
I am interested in gathering some knowledge about building flats. Yeah that is right not town houses, not duplexes, not units – I am interested in finding out the whens and wheres of flats.
Now there seems to be heaps of flats still around but it is like no one has noticed. Are they too passe?
What are the rules behind building multi dwelling residential buildings which are on the same title? Is it a State Government thing or is it guided by local council legislation?
Does anyone still make flats? If not why not?
At present I am trying to gather as many tenants as possible. I am not interested in selling them I just want cash flow. So I was thinking wouldn't flats provide the best PE ratio? The design of the building doesn't need to be aimed at attracting a buyer and there is no need to strata title.
Does anyone have any opinions or info?
Same regs as building any other multi-occupancy dwellings ie apartments. Most people progress down the line to strata as it is much easier to liquidate a few if ever needed.
If you build poor quality flats, you will get a return reflecting that investment.
People don't build flats any more for several reasons:
Return on investment – much easier to sell off ASAP to get the developer's profit
Generally requires a high level of borrowings (so would be very cashflow negative for some time)
Design codes have improved since the 1960's/70's requiring dwellings to be of a much higher standard ie there are the same expectations by legislators and planners whether it is for cbd or western suburbs or north shore (only the quality of fitout varies).
Biggest requirement is the standardisation of fire safety, compartmentation and fire separation between muliple unit residences for non-related persons – get yourself a copy of the building code of australia and look up the appropriate type of costruction, fire restistance measures, egress provisions etc for the type of building.I love flats not that I own any but I hope to one day .
Personally I think flats still have a good shot as they're are so middle to lower road which will be a bloody nice place to be for quite a while to come now I'd say .I had the op' to buy a block of 4 , 10 yrs back at Moe , Vic . Then well CFP and the deal made it poss' that I could have bought them. Man do I wish I did but also if you look at Moe stats now just to top it plus boom , me makem vedy silly mistake .
Definitely wouldn't go building them though and especially in these times , you've just got too much to re-coop , big worries and with lots and lots of outlay . Nightmare comes to mind in great big neons .
But buying a block of them I say why the hell not .Cheers
Yeah all good comments there from Mister, Scott and IP Freely. I thought there must be a good reason why people don't build flats anymore.
When I first moved to the city in 1988 I lived in a big old house that had been divided up into flats. I wonder if people are still doing that sort of thing now-days? The accommodation wasn't flash but it was so cheap – however if you added up all the income the house was making from the combined rents it was probably pulling twice (or more) what the house would have been with a single tenant arrangement.
We have 5 high yielding units at the moment but I am constantly trying to work out a way to get our hands on properties with even higher yields.
Hey Stage.
Sounds like you have a nice setup going on then.Can I ask , how do you manage to gather tenants before you get the building or have something ready ?
Doesn't it stress you out or they all start ringing you back ?Cheers
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