building duplex in Mackay with subdivision into two residential lots?

A

azzazell

I am very newbee investor
I planning to build a duplex in Mackay in new developed suburb http://www.watersooralea.com.au/
I think it is good investment
block 216K build contract 370K (3 bed 2 bath 1 garage X 2) additional expenses
tiles fence air conditioners turf driveway 30K + council fee and other town planning etc another 32k

The question is good investment?
Can subdivide house and lot into two separate units for possibility to sell them separately for abt 5k - is worth to it, or better leave it as it is?
 
Sounds like a good opportunity. I like this kind of development as a starting point.

So in total you will be in for around $650k plus another $15k or so in interest during construction, which works out at $332.5k per duplex.

Looking at the range of listings currently in the area they are anything from $387k for an older house http://www.realestate.com.au/property-house-qld-ooralea-112472055
to $455k for a new 3/1/1 townhouse http://www.realestate.com.au/property-townhouse-qld-bakers+creek-112260395 so there should be plenty of equity.

If you have the option of a site on a corner block, which you can have separate entry into and have detached duplex, that would be ideal, like this attachment.

Hope this helps.
Matt
 

Attachments

  • corner block.png
    corner block.png
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Matt thank you for comments.
i have got a block already according to Mackay council mi 600mtr with 20 frontage for a duplex and would suit on to corner due to boundary restrictions.
simple positioned both entrances from the front.

The question makes me worry because i don’t know what to do - is should i arrange subdivision into two separate units and lots or not - if yes i understand i will be able to sell them separately but additional costs and may be some other issues like if selling both additional cost for selling or additional running/management costs?
 
So it's only $5k to make them seperate lots? If so I would jump at the chance.

While there are plenty of more seasoned investors than me, I have looked at some properties such as this, and buying seperate titles is much more appealing.
 
b simpson said:
So it's only $5k to make them seperate lots? If so I would jump at the chance.

While there are plenty of more seasoned investors than me, I have looked at some properties such as this, and buying seperate titles is much more appealing.
Click to expand...

Yes separate titles are always preferred.
 
azzazell said:
I am very newbee investor
I planning to build a duplex in Mackay in new developed suburb http://www.watersooralea.com.au/
I think it is good investment
block 216K build contract 370K (3 bed 2 bath 1 garage X 2) additional expenses
tiles fence air conditioners turf driveway 30K + council fee and other town planning etc another 32k

The question is good investment?
Can subdivide house and lot into two separate units for possibility to sell them separately for abt 5k - is worth to it, or better leave it as it is?
Click to expand...
azzazell do you have proposed builder yet and/or house plans
 
azzazell said:
I am very newbee investor
I planning to build a duplex in Mackay in new developed suburb http://www.watersooralea.com.au/
I think it is good investment
block 216K build contract 370K (3 bed 2 bath 1 garage X 2) additional expenses
tiles fence air conditioners turf driveway 30K + council fee and other town planning etc another 32k

The question is good investment?
Can subdivide house and lot into two separate units for possibility to sell them separately for abt 5k - is worth to it, or better leave it as it is?
Click to expand...

I would split for sure.

Seems the Mackay council if loosening up the policy there in terms of development to try and reduce the sprawl and have more dwellings closer to town.

A mate and i bought a couple of old cheapie houses in North Mackay a few years ago with the thought of developing at a latter date when the market took off again. We initially got plans for 6 townhouses but the permits expired and with the market showing signs of life again we went to lodge plans again and they said you can put 10 there now!! Now that is sweet!

Anyway please keep us updated on your progress, will be interested to hear how you go choosing a builder, getting finance, the costs and the sale price if you sell one.

Good luck!
 
Last edited:
Mackay Subdivision

Hi Azzazell,

I'm looking at doing the same thing in Mackay with a block of land and wanted to know if you went ahead with this. At the moment I am looking at either building a duplex or just a house.

I have already built a new house on the block and situated this to one side, giving me just over 1000 square meters to build.

The quote I have received to build the duplex is $505,000.00 - Three bedrooms, two bathrooms, double garage. The only extras are air conditioning ($12,000.00) and council contribution fees. The council contribution fees for the subdivision are the only thing that is holding me back. If I was to build a house I would only need to pay $28,000 as I am only adding one additional dwelling to the block once subdivided, however if I build a duplex it is classed as a two dwellings and therefore I need to pay $56,000.00. So in total my costs are going to be just around $580,000.00 by the time I landscape etc.

Having to pay $58,000.00 in council fees almost makes me feel like i should just build another house.

Would be interested to hear if you went ahead with this and what builder you used.

Cheers
 
Hi RPI,

Total square meters is 351. The $505,000 also includes additional costs for the slab as it didn't come back within the standard inclusion the builder includes. This could change as I have only based this on the engineers report for the house I have already built on the block.

I'm guessing the builder is giving me a good deal on the duplex, its just weighing up if the additional council fees make it a worthwhile investment.
 
Jacko1983 said:
Hi RPI,

Total square meters is 351. The $505,000 also includes additional costs for the slab as it didn't come back within the standard inclusion the builder includes. This could change as I have only based this on the engineers report for the house I have already built on the block.

I'm guessing the builder is giving me a good deal on the duplex, its just weighing up if the additional council fees make it a worthwhile investment.
Click to expand...

Yep, pretty standard costs.

Where are you building, and who are you building with? PM me if you want.

Im currently got a duplex build on the hook in Mackay.


pinkboy
 
For those who are or have experience subdividing in Mackay, are there specific areas where the council development plan is preferable for smaller blocks and subdivision (more established areas like West Mackay, North Mackay and Andergrove) or does it tend to be across the entire urban area in general?
 
If I've read the planning scheme correctly, most of the established areas just beyond the city centre (Mackay Frame) can get subdivided lots down to as little as 400m2.

How would something like the following property fair as an example for subdividing? It's a 791m2 corner block in Beaconsfield that is zoned as Urban Residential within the Mackay Frame. Would be interested to hear as to how stringent Mackay Regional Council is with its planning scheme.

http://www.realestate.com.au/property-house-qld-beaconsfield-112946847
 
Hi RPI/pinkboy,

Is the $1468 per sqm a standard cost for building a single level dwelling in Mackay? This seems a very reasonable price, does it include operational works, levelling of the land and landscaping etc too. If you were to build near the flood zone where the living areas need to be build on a raised level I would imagine this cost would increase.
 
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