I am currently looking for an IP in the inner west of sydney, probably the Canterbury or Marrickville council....
A number of properties I come across that seem to have good rental returns are never approved! And the RE agent always say the same "don't worry about the council approval you don't need it.... just rent as is"
I have attached a good example below I had a good look at and was relativelty cheap (but in hindsight maybe for good reason). They had a 3 bedroom house attached to the back of the house which was not council approved and also the rooms were divided into 1 bedrooms for students. See below link:
http://www.domain.com.au/Property/For-Sale/House/NSW/Marrickville/?adid=2007600632
Now my dilema is with a number of other properties, the granny flats/garages look reasonably built and I am assured they would pass council approval if applied. I do not want to conduct a building and pest inspection on every one but I know roughly if it is ok or dodgy and the sizes they have to be in relation to the block.
How have people found it if they have purchased an IP with a granny flat on to get council approval? Or have you simply gone ahead and carried on renting as is without ever gaining council approvaL? This is a possibility and the only way you would ever be investigated is if your neighbours complain to the council. Obviously if you are renting the IP to 2 x tennants there is limited control you have and this is therefore a big risk!!
With big risk = reward but do many investors do this and just not tell the council and not sign leases with their tennants?
Or do you then get council approval after the purchase? or a building report?
Or do you just move on to the next? I seem to have done this a lot over the last few months and just think I may be missing the boat..... especially with the limited supply of IP's atm.
Some feedback from people who have had experience in this area would be greatly appreciated.....
Thanks
Ritchie
A number of properties I come across that seem to have good rental returns are never approved! And the RE agent always say the same "don't worry about the council approval you don't need it.... just rent as is"
I have attached a good example below I had a good look at and was relativelty cheap (but in hindsight maybe for good reason). They had a 3 bedroom house attached to the back of the house which was not council approved and also the rooms were divided into 1 bedrooms for students. See below link:
http://www.domain.com.au/Property/For-Sale/House/NSW/Marrickville/?adid=2007600632
Now my dilema is with a number of other properties, the granny flats/garages look reasonably built and I am assured they would pass council approval if applied. I do not want to conduct a building and pest inspection on every one but I know roughly if it is ok or dodgy and the sizes they have to be in relation to the block.
How have people found it if they have purchased an IP with a granny flat on to get council approval? Or have you simply gone ahead and carried on renting as is without ever gaining council approvaL? This is a possibility and the only way you would ever be investigated is if your neighbours complain to the council. Obviously if you are renting the IP to 2 x tennants there is limited control you have and this is therefore a big risk!!
With big risk = reward but do many investors do this and just not tell the council and not sign leases with their tennants?
Or do you then get council approval after the purchase? or a building report?
Or do you just move on to the next? I seem to have done this a lot over the last few months and just think I may be missing the boat..... especially with the limited supply of IP's atm.
Some feedback from people who have had experience in this area would be greatly appreciated.....
Thanks
Ritchie