Beachside Sub-Division between 3 and Parents!

[Bayside]

This is hard to explain but my parents own a house on a 700sqm block 4 doors from the beach in Parkdale, it's probably worth between $800-$900k. They are now into their 60's and they want to downsize but they want to stay on the same block in the same area and help out my 2 sisters and myself. We are thinking of sub-dividing the block and building a 2 bedroom Granny flat on the back of the battle axe block (Their title) and I will buy the old weatherboard house on the front half of the block for between $350k and $400k. We like the look of something like this for the back half where they will live. http://www.kit-homes.com.au/selvey.htm

The only thing is we don't want to cause a rift in the family we want everyone to come out of this fairly. We would like both blocks front and back to have their own title. Once the granny flat/small house at the back goes up Mum and Dad will sell me the front block for $350-$400k they will take out a small loan to pay for their granny flat at the back including all costs (Plans & Permits) I'll be selling my property in Frankston so I can buy out the old weatherboard house on a 350sqm block at the front and they want to help us all out with about $50k each and hopefully have money left over for themselves to buy a new car and all the mod cons etc... Sound confusing............. it is! I have no idea where to start with this. Maybe a surveryor? Anyhoo.......... any ideas stratergies would be much appreciated!

 

[Bayside]

That one sank like a led balloon.
Cheers.

 

[morty]

Hi Bayside,

I've actually done a number of these type of developments and it's all pretty simple, it does take a bit of time (around 12 mths) but if you jump through all the hoops it's all sweet.

First step is to talk to council re a planning permit application. They'll give you an idea of what is required and the process involved. So give council a ring and speak to someone in planning.

After that i'd contact a draftsman/designer to organise exactly how the two lots will look as well as the back house design, carparking, private open space etc. Ring one who is in the area and they will know all the ins and outs of your relevant council planning policy. A good draftsman will also handle the planning permit application.

Once you have settled on a plan ring a surveyor with regard to doing the actual sub-division. I've found the surveyors to be really helpful and they take it from the concept right through to separate titles.

Lastly i think is to speak to a solicitor in regard to allocating each property to the relevant parties. Also your accountant should advise you on the best way to structure everything for tax purposes.

Good luck
Morty

 

[natedog]

Hey Bayside,

If you want to get information for yourself on the planning overlays/zones relevant to the property.....use the dse website, quickest way is....

google "planning maps online" and follow the links to where you can type the property address into the search function and it takes you to an interactive map which gives the info...takes a bit of getting used to navigating through it but it is an awesome free to use tool.

If you want some help deciphering it feel free to PM me, i deal with this site regularly,

Cheers,
Nathan

 

[toony]

Consider this

If your talking about a property in Parkdale 4 doors from the beach - why would you consider a kit home more suitable for a pile of dirt in the bush.

There are developers in the area who will build you a nice home (depending on the block) in return for half of the block. There may even be a cash settlement as well. (Small House built costs less than land given to builder)

Advs
Your parents end up with a property suitable for the area.
Your parents end up in a new property.
They can borrow if they really want to gift money to the kids
No disputes later with your siblings regarding the value attached to the front property.
You keep your Frankston property.
Front property adds value to the back property ie. 2 nice houses on the block.
No hassles - all the work is done by the builder.
Your back property would be worth close to what you have now. ie. currently worth $800k. Brand new townhouse in the area worth close to $800k.



Disads
You dont get to own the front property.

Just my thoughts.

 

[Bayside]

There are developers in the area who will build you a nice home (depending on the block) in return for half of the block. There may even be a cash settlement as well. (Small House built costs less than land given to builder)


Thanks for the feedback, my parents really want to keep the block in the family as it will be very hard for us kids to buy back into such a good position. Why would they want to give 1/2 the block to a developer? They also like the idea of having family living close by so they can have help at hand if needed. They also don't like the idea of being stuck behind people they don't know living at the front.

 

[toony]

There are developers in the area who will build you a nice home (depending on the block) in return for half of the block. There may even be a cash settlement as well. (Small House built costs less than land given to builder)


Thanks for the feedback, my parents really want to keep the block in the family as it will be very hard for us kids to buy back into such a good position. Why would they want to give 1/2 the block to a developer? They also like the idea of having family living close by so they can have help at hand if needed. They also don't like the idea of being stuck behind people they don't know living at the front.

Fair enough - you dont need to justify anything to me.

 

[jrc]

Since your parents are in their 60s they will need to consider what effect the proposed gifts of $50k each will have on their present or future pensions

 

[Bayside]

True, Mum & Dad have just thrown the idea out there. Now we need to start talking with the right people.