Hi all.
For those interested read on.
Mid 2009 i bought a 1000 sqm property with a 3 bedder and attached granny flat FOR $300,000
Pos CASHFLOW as it sat after reno including all costs so happy at just that.
Late 09 crunched some numbers to subdivide and as it was on a corner block. the numbers staked up.
The project
Removal of the old asbestos garage on the side axcess boundry.
Build new garage for existing property( split in half and shared with flat)
Build 4 bed two bath on back of property with road frontage.
Subdivide from original property, revalue and move on.
End result 3 incomes. Hold long term. Pos geared.
Total costs of around $250,000 expected( 95% prices fixed plus buffer).
Including new garage for existing property.
Similar sales for the new property around $340,000 to $380,000( withing 1 klm)
To council i go
FIRST LESSONS
1# Neighbours will complain
2# Council will make things hard
3# It will take longer than you think.
Engaged the use of a town planner and glad i did. Council went to town with me and neighbours did also.Started DA begining of the year thinking 2 to 3 months would get it through.
Well im still going.
Many issues but below are the main ones.
1# Sewer line
I planned to build over but due to it being too deep i was not allowed.
FIX
I reduced the double garage to a single and pushed the house over a meter.
Unfortunately i still have to encase the sewer line( allowed for anyway).
Not ideal but gets it over the line.
2# Granny flat considered a dual occupancy.
As the whole DA must be assessed as a dual occ before i can subdivide. Council consider the flat a dual occ so this development would result in 3 on the one block( before subdivision)
FIX
No way around this unfortunately so i must connect the flat via all weather connection and surrender the granny flat as a independent residence effectively creating one residence with the original property.
Backward step i know but after the new place is built annd subdivided i then re approach the council and hopefully get re approved as there will now only be one property on that lot.
There were a few other issues with setbacks,privacy etc but all have been addressed.
So as i sit now i should have approval through in the next day or two
Only cost blow out at this stage is the additional requirement of connecting the flat to the house but reducing the double garage to a single offsets this.
So 3 months turned into most of the year but since its pos cashflow there has been no holding costs. ( plus its climbed in value about $50,000 anyway)
Next step.
Get DA approval in my hand.
Final finance approval
Sign with builder
Start new garage for existing property
Demolish old garage and encass sewer line.
Start new property.
For those that might be interested i will update this as things happen.
Date changes
cost blowouts
Last minute changes
Suprises good and bad.
So far im happy with this little development. great learning experience for me.
With some profit at the end hopefully
For those interested read on.
Mid 2009 i bought a 1000 sqm property with a 3 bedder and attached granny flat FOR $300,000
Pos CASHFLOW as it sat after reno including all costs so happy at just that.
Late 09 crunched some numbers to subdivide and as it was on a corner block. the numbers staked up.
The project
Removal of the old asbestos garage on the side axcess boundry.
Build new garage for existing property( split in half and shared with flat)
Build 4 bed two bath on back of property with road frontage.
Subdivide from original property, revalue and move on.
End result 3 incomes. Hold long term. Pos geared.
Total costs of around $250,000 expected( 95% prices fixed plus buffer).
Including new garage for existing property.
Similar sales for the new property around $340,000 to $380,000( withing 1 klm)
To council i go
FIRST LESSONS
1# Neighbours will complain
2# Council will make things hard
3# It will take longer than you think.
Engaged the use of a town planner and glad i did. Council went to town with me and neighbours did also.Started DA begining of the year thinking 2 to 3 months would get it through.
Well im still going.
Many issues but below are the main ones.
1# Sewer line
I planned to build over but due to it being too deep i was not allowed.
FIX
I reduced the double garage to a single and pushed the house over a meter.
Unfortunately i still have to encase the sewer line( allowed for anyway).
Not ideal but gets it over the line.
2# Granny flat considered a dual occupancy.
As the whole DA must be assessed as a dual occ before i can subdivide. Council consider the flat a dual occ so this development would result in 3 on the one block( before subdivision)
FIX
No way around this unfortunately so i must connect the flat via all weather connection and surrender the granny flat as a independent residence effectively creating one residence with the original property.
Backward step i know but after the new place is built annd subdivided i then re approach the council and hopefully get re approved as there will now only be one property on that lot.
There were a few other issues with setbacks,privacy etc but all have been addressed.
So as i sit now i should have approval through in the next day or two
Only cost blow out at this stage is the additional requirement of connecting the flat to the house but reducing the double garage to a single offsets this.
So 3 months turned into most of the year but since its pos cashflow there has been no holding costs. ( plus its climbed in value about $50,000 anyway)
Next step.
Get DA approval in my hand.
Final finance approval
Sign with builder
Start new garage for existing property
Demolish old garage and encass sewer line.
Start new property.
For those that might be interested i will update this as things happen.
Date changes
cost blowouts
Last minute changes
Suprises good and bad.
So far im happy with this little development. great learning experience for me.
With some profit at the end hopefully
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