# R Codes (WA) - Basics Please

#### Keen

Hi all,

Having thrashed about on the Internet for several hours I still can't find some definitions to some of the language used when reading about R - Codes.

I have a square 814m2 block - 20.12 x 40.48 (R20) in Madora Bay, and am trying to see what may loosely be possible as far as sub-division or building two houses etc on one plot of land.

The R-Codes for R20 state:
Dwelling Type: Single house or Grouped dwelling
Min. site area per dwelling (m2) - Min 350 Av 450
Min . lot area / rear battle axe 450

Dwelling Type: Multiple Dwelling
Min. site area per dwelling (m2) - 450

What is a Grouped Dwelling and a Multiple Dwelling?

What is meant by "Min. site area per dwelling"? This can't be the size of say a house because houses can be smaller than 350m2 - so what exactly is it?

What is meant by "Min . lot area / rear battle axe"? Is this actual lot size? What is meant by rear battle axe?

Even if I can't do any of the above for the block in mind - I would like to grow my knowledge on the subject and one day try a sub-division / multi? dwelling development.

Kind Regards
Keen

#### thatbum

I'm pretty sure nearly all those terms are defined in the glossary?

Not criticising btw - I spent 6 months reading and re-reading that document. Its 3 years later and I'm still learning things from reading it again.

#### westminster

Ok, the first answer is no - you can't split your block. The minimum size for 2 sites in R20 is 900sqm so that you meet the average size of 450sqm.

Learnings below

Bog standard R20 block/site is 350sqm minimim with an average of 450sqm. To get an average of 450sqm you need at least 900sqm. But the 900sqm can be made up of 350 + 550 as that is an avg of 450

Min site area is the minimum amount of land,

Battle Axe - the access leg and rear block are dedicated to the rear block - NO sharing of the access leg.

Grouped Dwelling - duplex, triplex, quad villas or townhouses. Can have common/shared access on driveway to rear of block.

Multiple dwelling - apartments. So in R20 each apartment needs 450sqm of land per apartment. 1800sqm = 4 apartments. Not a good idea in R20

#### westminster

BTW check out the explanatory guidelines document that comes with it - very helpful with even more pictures to make sense of it

#### MTR

Hi all,

Having thrashed about on the Internet for several hours I still can't find some definitions to some of the language used when reading about R - Codes.

I have a square 814m2 block - 20.12 x 40.48 (R20) in Madora Bay, and am trying to see what may loosely be possible as far as sub-division or building two houses etc on one plot of land.

The R-Codes for R20 state:
Dwelling Type: Single house or Grouped dwelling
Min. site area per dwelling (m2) - Min 350 Av 450
Min . lot area / rear battle axe 450

Dwelling Type: Multiple Dwelling
Min. site area per dwelling (m2) - 450

What is a Grouped Dwelling and a Multiple Dwelling?

What is meant by "Min. site area per dwelling"? This can't be the size of say a house because houses can be smaller than 350m2 - so what exactly is it?

What is meant by "Min . lot area / rear battle axe"? Is this actual lot size? What is meant by rear battle axe?

Even if I can't do any of the above for the block in mind - I would like to grow my knowledge on the subject and one day try a sub-division / multi? dwelling development.

Kind Regards
Keen

I assume this is the old Madora Bay, I also have a block similar size and investigated the options. WM is correct you can not subdivide, also there is no deep sewerage and not earmarked any time soon.

MTR

#### Keen

Thanks all.

Doh! So I can't subdivide or build more than one dwelling on this property as an R20.

Mine is highly negatively geared and prices have dropped substantially since I purchased in 2009. Its causing me some concerns from an ongoing affordability perspective, but I am reluctant to sell in such a poor market and crystallize such a big capital loss.

I have an old beach shack that rents at \$310 pw. I see little / no value in renovating it. Can't sub-divide etc. Can't sell in its current state and incur a loss.

I could demolish and build - but with property (land) prices having dropped I think I am just going to compound the problem.

My fixed I/O rate comes off in September. I plan to re-fix the rate which is currently 1.50% lower - this will help with affordability. Of course if I am going to demolish I need to look at that before re-fixing.

I am very conscious that when we do eventually come out of the low fixed rate cycle this loan could become a real problem going forward. So I am looking to pay down some debt whilst the rates are low.

Any thoughts or guidance appreciated.

Kind Regards
Keen

#### HD_ACE

Thanks all.

Doh! So I can't subdivide or build more than one dwelling on this property as an R20.

Mine is highly negatively geared and prices have dropped substantially since I purchased in 2009. Its causing me some concerns from an ongoing affordability perspective, but I am reluctant to sell in such a poor market and crystallize such a big capital loss.

I have an old beach shack that rents at \$310 pw. I see little / no value in renovating it. Can't sub-divide etc. Can't sell in its current state and incur a loss.

I could demolish and build - but with property (land) prices having dropped I think I am just going to compound the problem.

My fixed I/O rate comes off in September. I plan to re-fix the rate which is currently 1.50% lower - this will help with affordability. Of course if I am going to demolish I need to look at that before re-fixing.

I am very conscious that when we do eventually come out of the low fixed rate cycle this loan could become a real problem going forward. So I am looking to pay down some debt whilst the rates are low.

Any thoughts or guidance appreciated.

Kind Regards
Keen

I am not to familiar with the area, but to aid cashflow how about a granny flat?
Ideal for r20 block that size assuming side access and privacy etc.

120k could get you 2-400pw extra. Will need equity or cash to contribute to some of the cost of the gf.

Cheers

#### MTR

Thanks all.

Doh! So I can't subdivide or build more than one dwelling on this property as an R20.

Mine is highly negatively geared and prices have dropped substantially since I purchased in 2009. Its causing me some concerns from an ongoing affordability perspective, but I am reluctant to sell in such a poor market and crystallize such a big capital loss.

I have an old beach shack that rents at \$310 pw. I see little / no value in renovating it. Can't sub-divide etc. Can't sell in its current state and incur a loss.

I could demolish and build - but with property (land) prices having dropped I think I am just going to compound the problem.

My fixed I/O rate comes off in September. I plan to re-fix the rate which is currently 1.50% lower - this will help with affordability. Of course if I am going to demolish I need to look at that before re-fixing.

I am very conscious that when we do eventually come out of the low fixed rate cycle this loan could become a real problem going forward. So I am looking to pay down some debt whilst the rates are low.

Any thoughts or guidance appreciated.

Kind Regards
Keen

Hi Keen
I understand where you are coming from.

What I am seeing in the Mandurah market is some movement now. Best time to sell is summer of course.

I would cut and run, though dependent on what your loss is and your scenario??
Is the property close to the beach? Have you had real estate agents appraise it recently??

Do the numbers on a g/flat as suggested, but I would be loath to pour more money into this, especially as I don't believe you will get it back and I also don't think you would be able to access any equity from this. Also you may have tenant issues with this arrangement in Mandurah.

Our property is also a beach shack but it is one street back from the beach and it is in very good condition with ocean views. We purchased for \$199K in 2002 and at the height of the boom 2005/6 was bank valued at \$600K. This was our beach/holiday home for some years, but life got in the way and we never used it so we rent it out now at \$360 pw.

It would now be worth around \$450K, just to give you an idea on how the Mandurah market has been hammered, oh the pain... if highly lvr.

My plan is to sell this property as it really is doing nothing IMO and we have used the equity for other deals, so its a noose around our neck. Will be placing it on the market in October, agents are quoting 6% increase by the end of the year for this area??

Cheers
MTR

#### Keen

Thanks MTR.

I bought in 2009 at \$407k - 3x1. I am also one street back from the beach. About 100m to walk to the beach. No storeys - but you can see some water from the front yard. Rent \$310 p/w.
Perhaps we are in the same street!

Old Madora Bay is very hard to price - as new Madora Bay distorts the suburbs figures, and as there is often not a good sample of sales this close to the beach for this type of house.

That having been said there was a beach shack on the same size block for sale on my street a few months back. I think the asking price was \$330/350K

My place is in much better condition - this place was run down, no lawn, house needed some work - but cant see anything like a \$70k difference in asking price thou for our beach shack.

My debt for this place has increase significantly - Stamp Duty, some renovation costs etc. I reckon if I sold today I'd probably lose \$100k

I understand that sometimes you need to cut your loses - but in my case this is too big! If I did sell, it certainly doesn't help that properties are sitting on the markets for very very long periods.

I am as you highlight - very wary of potentially making the matter worse by building granny flats and the like.

I am selling another property with a fair bit of equity. The profits will pay down a fair amount of personal debt - freeing up some income.

If I have to keep the Madora Bay place - the Fixed I/O loan falls due in Sept and will be re-fixed for 4 years at a substantially cheaper interest rate (currently 1.50% cheaper). Thus freeing up more income...... But I cant help thinking I'm putting even more money into what currently is a bad investment.

I will as you suggest get someone to appraise it.

MTR - thanks for your post. I'd like to hear from you further how things go. Feel free to PM me. I will probably do like wise.

Kind Regards
Keen

#### MTR

Is there any way that you can increase the rent? Minor reno etc.
\$310 is very low, we are getting \$360, that would be an additional \$2000??

Sounds like you are in a good location so should rent out well.
I will pm you.

CHeers
MTR

#### westminster

What's the short term rental situation in Madora Bay like?

My aunt has one not in Madora but closeby which is a fibro 50s shack one street back and she rents it out for holiday/weekend rentals and make more money that way.

During summer it rents for around \$300 a weekend, \$800 a week.

#### MTR

The problem is with holiday rentals is a short time frame where you can actually rent. There is so much choice in Mandurah when it comes to holiday homes and also the set up needs to be excellent to compete. If using a pm they will charge a fortune. Its just not practical in this area.

cheers
mtr

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