All Topics / Help Needed! / Sub-dividing a unit?

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  • Profile photo of HarryMarcusHarryMarcus
    Participant
    @harrymarcus
    Join Date: 2012
    Post Count: 16
    May 7, 2013 - 12:23 pm

    Hi there,

    I trust you're all well :)

    I have a strange question actually – one that Google hasn't been able to assist me with.

    I'm currently looking at an unusually large apartment (4+ bedroom) which from what I can tell was once actually two separate units.

    I'm about to get knee deep in some scenario planning but was keen to understand whether re-dividing a unit is feasible according to strata law? Does anyone have any helpful information as to whether this is feasible and how I can research this?

    Thanks again in advance as always.

    Harry

    Profile photo of Richard TaylorRichard Taylor
    Participant
    @qlds007
    Join Date: 2003
    Post Count: 12,024
    May 7, 2013 - 1:01 pm

    HI Harry

    Welcome to the forum and i hope you enjoy your time with us.

    Whilst you idea is a good hate to say you wont be able to do as it would require the consent of all other owners to reconfigure the Lots to allow for a further unit.

    Each Lot has an entitlement and you cannot create an addition Lot without consent of not only the owner but also their financier.

    I have done exactly what you are suggesting however i owned the whole block of units and therefore did the reconfiguration prior to selling off the individual units.

    Cheers

    Yours in Finance

    Richard Taylor | Australia's leading private lender

    Profile photo of Scott No MatesScott No Mates
    Participant
    @scott-no-mates
    Join Date: 2005
    Post Count: 3,856
    May 7, 2013 - 1:34 pm

    The other risk is that you may trigger a fire upgrade/fire order over the entire block – ie the whole block may be required to be brought up to BCA standard even if it were built 30 years ago.

    Profile photo of RPIRPI
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    @rpi
    Join Date: 2012
    Post Count: 308
    May 7, 2013 - 10:32 pm

    Hi Harry

    I agree with Richard

     We recently priced up something similar for a client. Don't forget that you are creating an additional lot so will also trigger infrastructure contributions.  2 Bed in QLD would be up to $21K, legals to get consent of all the owners will not be cheap, best part of $10K and that is if you can get consent.  You may need to give them some financial incentive to do so, what benefit do they receive in agreeing otherwise?  Then you have to do the fire rating, carparking requirements,  private outdoor living space.

    If you are holding it as investment, then you well get 2 lots of rates and 2 lots of body corp fees.

    Seems like a good concept at fist instance, but then once you list all your costs not so much.

    regards

    RPI | Certus Legal Group / PRO Town Planners
    http://www.certuslegal.com.au
    Email Me | Phone Me

    Property Lawyer & Town Planner

    Profile photo of HarryMarcusHarryMarcus
    Participant
    @harrymarcus
    Join Date: 2012
    Post Count: 16
    May 7, 2013 - 10:43 pm

    Hi guys,

    Thank you so much for your insightful wisdom – certainly rules out the opportunity of sub-dividing the apartment.

    It still seems like an interesting opportunity given the sheer magnitude of the apartment (it's the only 4 bdr that's really existed in this area for quite some time).

    Given the rarity of the find, I'm finding it hard to grasp how to value a 4 bdr of this nature. Should I use 3 bdr pricing as a guide? Or would it be right to believe it would sit somewhere between the space of a 3bdr unit and a 4bdr townhouse?

    Still finding my feet after successfully completing my first IP reno project a few months back now!

    Thanks again for sharing your wealth of knowledge with a keen newbie.

    Harry

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