Duplex sites

[sydboyz]

Hi,

I am a newbie trying to find out about possibility of building duplex on either a vacant land or old house with large block.

I have the following questions in mind but need someone with experience to advise.

1. what land size and frontage is suitable for duplex?
2. Does it depend on the council or the developer for approving duplex site?
(could different developers result in different council decision in approving duplex site?)

3. If there is an existing house, how much normally does it cost to demolish and build a new duplex sites? Is it cheaper than building 2 separate houses?


4. Moneywise, do you have to keep paying the interest while the existing house is being demolished and new house is built? Is there any finance institution that are offering delayed settlement or interest free while building?

5. How long does it take get da approval for building duplex site? What are the costs involved and how much will it be?

6. If the land is big enough, can a triplex built on it?

Thanks in advance.

 

[Pablo]

Hi,

I am a newbie trying to find out about possibility of building duplex on either a vacant land or old house with large block.

I have the following questions in mind but need someone with experience to advise.

1. what land size and frontage is suitable for duplex?

This depends on the council, go onto their website and you should be able to find their developement plan which will explain what you can do in each zone, when you find a suitable property ring up the council to find out the zone and then look it up in the plan.

2. Does it depend on the council or the developer for approving duplex site?
(could different developers result in different council decision in approving duplex site?)

The council is the main influence but a good builder/town planner may have some influence in getting a non conforming developemnet getting through if they can show it will work.

3. If there is an existing house, how much normally does it cost to demolish and build a new duplex sites? Is it cheaper than building 2 separate houses?

It costs between $5k and $15k to demolish a house. From what I hear builders do not give much if any discount for building a duplex over 2 seperate houses

4. Moneywise, do you have to keep paying the interest while the existing house is being demolished and new house is built? Is there any finance institution that are offering delayed settlement or interest free while building?

Yes you have to pay interest on the existing house and then get a construction loan on the new houses you will be building which you will also have to pay interest on. Depending on your circumstances you may be able to capitalise the interest (borrow the cost of the interest). You can also try to negotiate a clause in the sale contract e.g. subject to developement approval which means that you may save a few months of interest while the developement is being approved.

5. How long does it take get da approval for building duplex site? What are the costs involved and how much will it be?

Depends on the council but apparently most councils are now trying to stream line it could be between 3 months-12 months. Make sure you get your paper work right the first time and this will cut down the time.

6. If the land is big enough, can a triplex built on it?

When I was looking into developing the duplex's did not provide enough profit versus risk. It was the triplex blocks or the potential hammerhead blocks where the profit was but of course this put them in high demand and the builders or more expirienced developers would always be able to pay more for the properties as they had lower costs so could pay more and still make a good profit. In the end I just bought an IP with development potential and good yield with an aim to develope in the future when there was enough equity in it

Thanks in advance.

check out Ron Forlee's 2 books on property development they are very good

http://www.businessmall.com.au/property-investing/property-development.html

Hope this helps.

 

[marg4000]

3. If there is an existing house, how much normally does it cost to demolish

Check for asbestos. This will dramatically increase demolishing costs.
Marg

 

[BV]

3. If there is an existing house, how much normally does it cost to demolish and build a new duplex sites?
.

demolisions start @8K and go up
plus what the builder charges you
plus at least another $50K for finishing costs, driveways, landscaping etc.
This additional figure will vary depending on what your block looks like, how much work you do yourself plus how long it takes to build (time = money going to the bank (you'll be paying interest....))

 

[newhigh]

1. what land size and frontage is suitable for duplex?

Some of Australia's cheapest metropolitan duplex potential blocks can be found in the beachside suburbs of Frankston, North Frankston & Seaford. The area has a 100+ year old history and is well established. The local council has made redevelopment relatively easy in order to get rid of older homes. One needs 600sq metres to obtain subdivision permission from the local council, although they sometimes allow smaller blocks on corner sites to be subdivided.

Prices are cheap, and often as little as half the current median price for a Melbourne home. If you are really lucky you may pick a site where you can retain the front house and build a new one at the back. North Frankston is the cheapest of the three suburbs as it is not entirely beachside and has a few older areas with a little bit of public housing.

Take a look at the many Frankston threads for more info.
Disclaimer: I own property in the area. Didn't have to tell you that but I thought it'd be fair.

 

[Sunfish]

In my street you can buy a 1,012 sm block with zoning for about 10 bedrooms for about $300k. These blocks are excellently placed close to amenities and major employers.

I have no idea how that compares with other cities but I reckon that's pretty cheap.

 

[bobbiemenzies]

In my street you can buy a 1,012 sm block with zoning for about 10 bedrooms for about $300k. These blocks are excellently placed close to amenities and major employers. I have no idea how that compares with other cities but I reckon that's pretty cheap.

1.Is this in a metro area of a major city? I'm scared of buying in a rural place that is subject to economic cycles and commodity prices - banks are more reluctant to lend for in non-metro areas.

2.Is there an existing building on the land so we can get a return on investment right away?

3. Has anyone actually put up 10 one bedroom units on similar sites (ie. quarter acre blocks) recently and are they rented out?

Appreciate your advice.

 

[sydboyz]

Thanks for the advise, guys.

I learned more day by day.

I lived in NSW where land does not go cheap

I have come to terms such as residential 2a zoning or 2b zoning, what is the difference between the two?

Also, I came across to a block of land, the developer is selling the lot a and b together (for some reason, it must be sold together), they also mention about some restrictions in lot b.

These blocks of land (8 lots) do not have an existing driveway/road, who would normally pay to build the driveway/road for all the houses who will be sharing the same road.

Anyone experience this and know anything common about.


Thx in advance.

 

[bobbiemenzies]

I lived in NSW where land does not go cheap

Unless you fall in love with a place and plan to live in it, the fundamental rule to remember is: CHEAP IS GOOD. Get records of ALL past sales and compare what's for sale now to what similar stuff sold for 5 years ago. You can ask your agent for such information and if he fobs you off, then he's not being very honest. Personally, I'd only go for duplex sites if there was an existing old house on it so I could get revenue from day one. But thats me.

 

[Olly]

Hi,

I am a newbie trying to find out about possibility of building duplex on either a vacant land or old house with large block.

I have the following questions in mind but need someone with experience to advise.

1. what land size and frontage is suitable for duplex?
2. Does it depend on the council or the developer for approving duplex site?
(could different developers result in different council decision in approving duplex site?)
6. If the land is big enough, can a triplex built on it?

Thanks in advance.

Local council sets the rules and probably have booklets you can buy in regards to what you can and can't do and what's expected of each development. e.g. what you can build on what size block, what size open areas have to be, what the setbacks are and so on.

Using my council (Fairfield) as an example - the old fibros on large blocks are being bought, knocked down and duplexes/townhouses being built at a furious rate. if the block is less than 20m wide you can only build a duplex. They also are discouraging battleaxe blocks or long rows of townhouses with a driveway running down one side. They're also discouraging the garage extending out past the main building by certain length. (They've learnt from their mistakes as we have some ugly duplexes built on narrow blocks from when they first starting encouraging developments.) There has to be a certain size outdoor area which changes with 1bed, 2 bed and 3bed as does parking areas, turning circles and so on. You have to include greenspace, planting etc. And there's lots more.

Find an area where your idea is a goer and you can afford, go and see council and get a guidelines book.

Cheers
Olly

 

[dallee]

Canberra

We're looking at demolishing one side of a duplex and building on the slightly awkward block of 15x49x26. Indications from ACT planning is that its possible but we'll need to make right the roof of the other property, which is an ACT Housing property, and move the shared stormwater drain. ACT Housing also don't see any particular barriers. Any idea of what we'd be up for in that stage of the build plus how much a 4 bed double storey home with 2.5 bathrooms, study etc is likely to cost us in Canberra. Friends have recently had a quote for $450k just for an extension, which is a bit scary!