Help! Subdivision-will you do it?

[virgo]

Hiya

So, i was planning to build a granny flat on my corner block in Penrith; then i remembered it is on a 2C zoning and i can build a duplex and subdivide (thanks Devank!!)

But i have some reservations; as it is a small block; slightly less than 600sqm.

"Luckily" the original crap 4 bedder fibro is pushed right up against one street frontage leaving a long block down the side. Thus the new house will have its independent separate driveway...

However i reckon i will only have about 250 sqm land left to work with.

Qn 1: Has anyone built an attached duplex on such a small land? Do you think it is "funny looking" to have a new duplex attached to a crappy old fibro house albeit having 2 different street frontage?


Presently the rent is 560 per week on a 300K purchase.

If i were to build, the combined rent is estimated to be 840 per week; total cost for a 2(?) 3(?) bedder is 150K (?)
ie total cost is 300K original house price plus 150K = 450K

Original rent return 9.7%; new rent return also 9.7%!! (but i think the absolute rent return will go up)

However increased equity is about 250 (front house drops in value after build?) + 320 new house = 570 - 450K = 120K

Qn 2: Is this 120K worth all the angst of building?
If it were you, will you build? seeing you will end up with 2 small lots...
My intention though is to keep both and enjoy the rents

Thanks and well done if you have manage to understand me right up till the end

 

[westminster]

I think you might be underestimating your rent of the new duplex? New places attract a premium and may rent for more than the front house. Looking at the Penrith listings online I would estimate that a 3 x 2 would be worth $400 + per week. Talk to your PM and see what they think.

On a 250sqm block you can actually build a pretty awesome house - though I have no idea what 2C means (will google in a sec). You could probably build a 3 bed, 2 bathroom which will rent really well I'm sure.

You do need to check what the minimum size block is for 2C so you know if it's an option for your block. I can only speak from WA knowledge but I have my 3 villas on 805 sqm so avg block is 260sqm.

Some councils will ask you to make the other house look a bit better, some won't.

 

[virgo]

To subdivide and beyond!!

Thanks Westminister

I am only a stay-at-home-mum and i have been reading your posts recently...very inspirational

The 250 sqm will have to include a garage though...not sure whether i can squeeze in a 3 bedder.....

 

[matto_]

My first read - I had to stop to think.

But then it dawned on me. As westminster says. New properties normally command a premium.

Your current guestimates suggest that the new property would only rent for 280 p/w when the front one currently rents for 560?

 

[virgo]

Rent

Hi Matto

The front house (the old crappy one) will rent for 500 and the back one for 340 per week; it's a funny situation with 2 bachelors atm paying 250 each...they have been there for the last 5 years and are happy as Larry

I am pretty confident they will still be there after i build the house....i know them well....

 

[Ideo]

Can you legally build one on that lit size?

 

[westminster]

I have since edited my post 3 times - sorry kids and dinner and posting don't mix - more thoughts in my original post

 

[westminster]

I just re-read your post. You say it's a corner block but you are thinking of having them side by side? Why is that?

If possible it's best to have it in the rear garden and the seperate driveway on the other street.

I would go unattached if possible.

 

[westminster]

Thanks Westminister

I am only a stay-at-home-mum and i have been reading your posts recently...very inspirational

The 250 sqm will have to include a garage though...not sure whether i can squeeze in a 3 bedder.....

Thanks!

These are 2 of the villas - they are the 110sqm of building plus the double garage.

 

[virgo]

villas

Hi Westminster

Thanks so much for the villas, just what i am looking for....but do you have another one with each room size?

i assume the 110 sqm is the footprint of the building (PER VILLA) not the land size?

thanks

 

[DaveM]

Check with Penrith council on minimum lot size for a torrens subdivision on a 2C. You can always do a strata subdivision is too small.

Just be aware that you may open a can of worms with the existing house and its half house status, council may want it converted back to a single dwelling, or it have the requierd fire separation etc measures built to include them as strata lots each.

 

[Scott No Mates]

Virgo, you sit on a corner block. What is stopping you putting two new side/side or separate dwellings on the block one facing one street and one the side street or both facing the side street? Not only do you not lose any land to a driveway but you should maximise the development of the block. Of course, everything is subject to council approval.

Check out masterton or other project builders and you may get something for around $300-400k for the pair.

 

[virgo]

Subdivide

Hi ScottNoMates

I wish to keep the existing house because otherwise the numbers would not work if i demolish and build 2 new ones...(see numbers in my original post).


I have paid $880 to a townplanner...he came down to have a look and is encouraging me to go for a torrens title detached house...you need 600sqm for 2 houses in Penrith council and i am short (less than 10%)...he says we can arrange to have a prelodgment meeting with council...but if that fails, i can still build an attached duplex... (not sure of costs though? )

However i worry that the new house (2 bedder ? 3 bedder?) will be on a very small lot and unsaleable....(i think i will end up with about 280 sqm land for the new house).

So i am frozen into inaction...the town planner is going to charge me $3500 for plans (attached and detached) , survey, meeting with council basically hold my hand till DA stage...i worry it will be a money pit going nowhere..

 

[DaveM]

So i am frozen into inaction...the town planner is going to charge me $3500 for plans (attached and detached) , survey, meeting with council basically hold my hand till DA stage...i worry it will be a money pit going nowhere..

Why inaction? If it costs $3500 to get it to DA, then say $30k to subdivide and fence, you can probably sell the land only for $200k. $35k to make $200k, sounds like a deal to me.

 

[lizzie]

The 250 sqm will have to include a garage though...not sure whether i can squeeze in a 3 bedder.....

Of course you can - I planned a 3 bedder with double garage on a 160m block (8x20) - was double story tho.

250m piece of cake and not small by modern standards ... the spec builders are designing good ranges now for small blocks.

Don't let fear stop you ... and ... as Dave said ... it's money for jam.

 

[sanj]

Of course you can - I planned a 3 bedder with double garage on a 180m block - was double story tho.

250m piece of cake ... the spec builders are designing good ranges now for small blocks

Agreed. Aaron designed me some 3x2s with DLUG on 160sqm and 170 sqm, can certainly be done

 

[beachgurl]

If u can afford/allowed to build a double storey you could build a reasonable sized house. We built a 22sq 4 bed plus IT nook with two living areas and single garage on a slightly bigger block but this exact house exists on many 220sq blocks in our estate.