we have a 570sqm property situated in the northern suburbs.
it currently has an old small 2 bedroom weatherboard house on it – vacant as the least just finished.
we were looking at knocking the house down and putting 3 units on it
we have not yet looked into finance but at this stage are looking at keeping the budget as low as possible
1. will 3 units fit on 570sqm or are we better off building 2 generous sized? (I think we'd make better money off 3?)
2. can we look at having the weatherboard house leased out for another 12 months while we get the building started on the first one or 2 units? or is it too much headache, or will it not even save us on costs?
3. where could we possibly look at selling the weatherboard house – this would save on demolishing costs? (is it worth it? )
4. is a larger company, i.e. carlise homes, vs private builder the way to go, given the fact our budget is small? ( Looking at maybe less than 150k each unit)
we were thinking of selling maybe 2 and keeping 1 on rent.
TYPICALLY how long may it take from time of planning, council, to selling these newly built units?
so many questions as its only something we've decided we'd like to do now that the house is so old and the place is vacant.
also what costs should I add when calculating if this project is worth it and how much I may walk away with after selling these units?
(permits etc, agent selling fees – is there anything else?
how much may concreting be? is this something most builders will do for us?TheFinanceShopParticipant@thefinanceshopJoin Date: 2012Post Count: 1,271jmsrachelParticipant@jmsrachelJoin Date: 2012Post Count: 711
I'd say on that size of land you'll only fit 2 town houses but i stand to be corrected.
Pretty hard to say what you could build. Tell us the street its on and which suburb and state and ill give you the link for the answers
Keon Park (Thomastown – reservoir) Melbourne Victoria
its on a main road- Keon Parade
So that's darebin council yes?
For any queries in regard to the review please contact the Strategic Planning Unit on 03 8470 8465 or via email to: [email protected]
id arrange a time to go in and speak to them because res code might vary a bit if its on a main road and they are looking for that type of development. Even speaking to a town planner would give you a better idea of what is possible within the code. But have a look at other developments on the main road. If someone else has out 3-4 townhouses up on 570 sqm or less then youd have a pretty good precedent to submit something even if it is non complying. Just because they say it has to be 200 sqm for example minimum size doesn't mean 190sqm won't get through
If your building units. Most likely you would have a joint roof line so you wouldn't be able to build them independentlymattstaParticipant@mattstaJoin Date: 2011Post Count: 604
Talk to the Strategic Planning Unit and are you sure you want to build three townhomes? Won't it be a little bit crowdy? I, for instance, do not like to live too close to another house, so I can see everything going in my neighbors' place. I would also probably keep all houses and just rent them out.
Yes we weren't sure if we should do 2 or 3. I thought we would be able to make more money off 3?
Thats if they fit for a start though?!FreckleBlocked@freckleJoin Date: 2012Post Count: 1,680mattsta wrote:Won't it be a little bit crowdy? I, for instance, do not like to live too close to another house,
It's now the norm Matty. Here in Mandurah WA all the new subdivision like to build houses almost on top of each other. I rent a 5yr old 4//2/2. If I stick my tongue out the window I can lick the boundary fence.
Claustrophobic to say the least. If you want space you have to rent an old banga.TheFinanceShopParticipant@thefinanceshopJoin Date: 2012Post Count: 1,271
Most units here would only have maybe a 3M courtyard. That's all I intended doing
if I built them joining I would do it so as least 2 have their garages in between all the living areas
maybe with the 3rd could give them slightly more space if plans allow it
might need to go double story but resale might not allow much profit it this area
you can buy a house around here for around 400 so it will be tough to make a profit, I need help with a low budget especially by the time I pay all feesmattstaParticipant@mattstaJoin Date: 2011Post Count: 604
I agree Freckle. I have noticed it as well. Houses are getting closer and closer every day. I have traveled to the US recently and saw the same. I would be afraid to leave my curtains open since your neighbors are so close and it feels like you are constantly watched. I guess they are trying to save space and money by building as many houses as possible.BreeceParticipant@breeceJoin Date: 2011Post Count: 43
The Strategic Planning unit in a Council deals with Planning Scheme Amendments (rezonings), Urban Design Frameworks, Structure Plans.
You need to contact the Statutory Planning Department to discuss the redevelopment of your property.
(Sorry to nit-pick everyone, but it will save lots of time by not having to explain your story to the wrong person, then repeat it).
To respond to some of your questions bnd, please see below:
1. Will 3 units fit on 570sqm or are we better off building 2 generous sized? (I think we'd make better money off 3?)
No one will be able to confidently answer this until you have carried out a Property Development Assessment by a professional.
From experience, I can tell you that Keon Park (and many other suburbs in Darebin) are impacted by Single Dwelling Covenants, with the beneficiaries in some cases extending out into the hundreds due to the historical application of covenants during the initial subdivision of land in the northern suburbs.
– Ensure you ask the right questions and get detailed answers before you commit to anything.
– Understand what you want and have a plan.
– Understand the context you are working in – from the local planning controls to re-sales/rental income.
– Have an understanding of the process, even if someone else manages your project.
– Budget for $1,500/m2 delivery costs. (This includes all planning, design, and build costs)
– Get good advice early. The profits are in the detail.
– Ensure you have a sound team with the relevant expertise at hand.
– Get the right structure in place to minimise tax.
2. Can we look at having the weatherboard house leased out for another 12 months while we get the building started on the first one or 2 units? or is it too much headache, or will it not even save us on costs?
Plan for this early. Expect your Town Planning and Design stages to take 6-8 months before you commence site works.
Remember, you need to allow for concept plans, the planning application, working drawings, specifications, planning and building approvals, and any contingencies due to site specific controls.
It may be that from Day 1, you allow for a 12 month lease on the existing dwelling.
It's all about timing your project effectively.
3. Where could we possibly look at selling the weatherboard house – this would save on demolishing costs? (is it worth it?)
There are a number of demolition companies in Melbourne who recycle components of old houses. However, if the property is in good condition and well sited on the block, I would consider options which include retention of this dwelling.
4. Is a larger company, i.e. carlise homes, vs private builder the way to go, given the fact our budget is small? ( Looking at maybe less than 150k each unit)
This is entirely dependent on what your development priorities are.
Before you do anything, do your due diligence and get a Property Development Assessment completed.
This will provide you with your Development Options, Construction costs, Planning and Design costs, Feasibility of options, and your financial strategy. All of these considerations are driven by your budget.
We are currently building a 3 bedroom townhouse in Glenroy on a construction budget of $165,000. Our client in that scenario prioritised cost over size, and finish. This was decided after analysing the information contained within his Property Development Assessement (PDA).
Given the site information you have provided, and from experience in that area, I would consider your priorities would be to ensure you can achieve your development goals (2 or 3 units), within the shortest possible timeframe, within your budget.
Similar to our Glenroy client, I would suggest you are driven by cost. Is this correct?
So who is better suited to your needs?
Follow the advice above and get a strong team around you with the relevant experience. You will know who is best suited once you have assessed each company against your development plan.
5. We were thinking of selling maybe 2 and keeping 1 on rent.
It is good to settle on this plan early in the development process.
As discussed above, plan early and have the right structure in place to minimise tax.
6. Typically how long may it take from time of planning, council, to selling these newly built units?
You will find a range of answers to this question from different sources.
Typically for your scenario it should take 6-8 months in the planning stage and 6-9 months in the construction stage.
It is not possible to give a firm timeframe this early in the process. There are too many variables that are yet to be resolved.
I hope this information assists you with your project. I hope it is an enjoyable and rewarding experience.
You will learn so much from your first project. Be prepared to ask hard questions of your team and ensure they take the time to explain the process, step by step.
All the best,
can any one recommend a decent builder that will accommodate for low budget?
we've decided to build 2 units (unfortunately block is too narrow to build them side by side)
we will live in one, – this could be for a few years
and rent the other out