House with unapproved granny flat for in-law use

[Brisbaneite]

Hi all,

I am hoping someone may have some advice on a question please. I am going to view a property tomorrow that I am interested in purchasing. It is a very large house, with a bedroom, bathroom and kitchen downstairs.

We are interested in the property as we need to have my father in law come to live with us and the layout of this property would provide him with his own completely self contained living space.

The agent has advised that the downstairs is not approved as a separate dwelling and cannot be rented out. However, if we are not renting it out, how does insurance work on this property? It is just insured as one large residence?

Do you use the lack of approval as leverage in negotiating a discount?

Any advice appreciated.

 

[DaveM]

Cant be rented, for owner occupied no problems. Just ensure you only pay the value of the house without the downstairs bedroom in terms of $x for a 3 vs 4br, as on resale it can only be sold as the approved bedrooms unless you get it through council.

Take a tape measure and check the floor to ceiling height, if its 2.4m or more (plus tolerance for ceiling and flooring heights) then its likely able to be converted as its legal height, would require council DA.

 

[Brisbaneite]

Hi Dave,

Thank you so much for your help, I really appreciate it.

I will definately take a tape measure with me and check the roof height. Is there anything else bar the 2.4 height I should be aware of? It is located in NSW so I will read up about granny flat laws. It would be useful to have it approved if it could be so that we could rent it out should my FIL no longer require it - which is unlikely as I am sure he is delighted at the thought of harassing his children for many years to come!

 

[DaveM]

I will definately take a tape measure with me and check the roof height. Is there anything else bar the 2.4 height I should be aware of? It is located in NSW so I will read up about granny flat laws. It would be useful to have it approved if it could be so that we could rent it out should my FIL no longer require it - which is unlikely as I am sure he is delighted at the thought of harassing his children for many years to come!

The two dwellings need to be fire separated to get it approved, its not cheap but it can be done.

Other considerations are presence of windows and the window size as this will determine the ability of a room to be classified as habitable.

For a granny flat conversion under the affordable housing sepp it needs to be max 60sqm.