Good morning everyone
What a great forum.
Background:
We have a 3 bed post-war on metal stumps (99 sq meters under roof) with internal stairs to under the house. The block itself is 500 sq meters zoned LMR with both neighboring blocks having 2 units each and lots of multi-level units up the road backing on to trout street.
My wife and I love the location but need to add more space. The constraints are that we are mainly on a single income for the next few years with young children - so the bank is not likely to cough up big dollars for a reno.
We are contemplating a lift and build under (owner builder project managing trades) - have good contacts to fall back on for this so will not be a total newbie project. We liked this idea because we can space out costs over a year or so to allow us to save between stages (after doing the lift and slab in one hit) - I can't see knock down/rebuilding being cost effective atm, as there are more than a few nice 5 bed 3 bath houses for sale in Ashgrove for 790K-890K at the moment. I would end up costing 830K for us to put a similar sized project home on our block - not good value. May be the higher end market is moving better, don't know. Anyway, the bank issues still apply.
After reading posts on LMR zoning (which our block is zoned in Nathan Ave), I wonder whether I might have a chance getting a loan extension if I segregate the front portion of the new downstairs as a one bedroom unit and rent it out? Rents for one bed room units are in the high 200s/wk at the moment in Ashgrove. This would easily cover repayments on a 100K loan (we have about 40K saved to pay for the lift and slab). With another 100 sq meters (without extending out) we could easily add another 2 bedrooms a bathroom and family room (extend of our needs) and still have space for a unit in front.
QUESTION:
I am finding it hard to understand what is the maximum I can legally do with my block given its only a 506sq metres (15 metres wide)? What formulae apply? As we area in a brilliant rental area close to transport, it might be smarter to set this up to maximize rental returns in future rather than end with a large single family home surrounded by units.
Sorry for the ramble; its sort of my head is at the moment!
Regards
What a great forum.
Background:
We have a 3 bed post-war on metal stumps (99 sq meters under roof) with internal stairs to under the house. The block itself is 500 sq meters zoned LMR with both neighboring blocks having 2 units each and lots of multi-level units up the road backing on to trout street.
My wife and I love the location but need to add more space. The constraints are that we are mainly on a single income for the next few years with young children - so the bank is not likely to cough up big dollars for a reno.
We are contemplating a lift and build under (owner builder project managing trades) - have good contacts to fall back on for this so will not be a total newbie project. We liked this idea because we can space out costs over a year or so to allow us to save between stages (after doing the lift and slab in one hit) - I can't see knock down/rebuilding being cost effective atm, as there are more than a few nice 5 bed 3 bath houses for sale in Ashgrove for 790K-890K at the moment. I would end up costing 830K for us to put a similar sized project home on our block - not good value. May be the higher end market is moving better, don't know. Anyway, the bank issues still apply.
After reading posts on LMR zoning (which our block is zoned in Nathan Ave), I wonder whether I might have a chance getting a loan extension if I segregate the front portion of the new downstairs as a one bedroom unit and rent it out? Rents for one bed room units are in the high 200s/wk at the moment in Ashgrove. This would easily cover repayments on a 100K loan (we have about 40K saved to pay for the lift and slab). With another 100 sq meters (without extending out) we could easily add another 2 bedrooms a bathroom and family room (extend of our needs) and still have space for a unit in front.
QUESTION:
I am finding it hard to understand what is the maximum I can legally do with my block given its only a 506sq metres (15 metres wide)? What formulae apply? As we area in a brilliant rental area close to transport, it might be smarter to set this up to maximize rental returns in future rather than end with a large single family home surrounded by units.
Sorry for the ramble; its sort of my head is at the moment!
Regards
