Big Block - One House vs Subdivide?

Discussion in 'Development' started by willister, 13th Feb, 2019.

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  1. willister

    willister Well-Known Member

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    My folks sit on a 800m2 block in Mount Waverley. House is small, 3 bedder at front, 60s BV probably about 12 squares, needs a bit of work on the kitchen and bathroom but good thing is that is has 2 toilets inside the building. One in the bathroom and one near the laundry. Folks are ageing (dad is 70 and mum is 62) and they've offered me with the following options:

    1) Build a 40-42sq McMansion provided I move in with my family. Has to be a 5 bedder with bathroom on ground floor. We have had a look at volume builders with two designs which fits our needs well.

    2) Keep existing place (front) and build a 36 square design at the back). Front house would need about 50K worth of renos to make it decent.

    3) Demolish current house and build 2 new units.

    Reason: Folks ageing, my folks still conform to Asian traditions of living with the son when in old age. Kids are 4 and 1, whilst still a long shot from high school, it has crossed my mind. I currently live in Chaddy, next suburb up, I've already demolished and built a few years back.

    Option 1 is the least desirable and I think its a bit of a waste of a block, we went down this path with our own PPOR and thought even at out 650m2 it was a waste let alone 800m2! We'd get the upper floor but need to share the kitchen/laundry/dining amenities downstairs.

    Option 2 is probably too expensive for us and for us to do that we'd need to sell out Chaddy place which we dont want to do. Sleeping on it for a few weeks and thinking about it Option 3, subdividing it and keeping the current front place would be the most practical and economical? Or am I over simplicating things? Some friends tell me good luck in getting a volume builder to do it and the design we want may not get approved.

    Any pitfalls I need to be aware of going for option 2? What would you do?

    Future wise, would it be easier selling a McMansion as a whole on a 800m2 block though not lavish by any measure or having 2 subdivided?

    Thanks.
     
  2. Mike Sargeant

    Mike Sargeant Active Member

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    Option 1; I'd say only do it if you prefer a personal solution. By the time you seel demand for McMansions will have continued to pull back and off a volume builder its not likely to be anything special to sell in the market at that point.

    On option 2; Designing compliant new builds behind existing dwellings always means compromise and often results in difficulties in terms of compliance with Rescode or the Zone Schedule. This option needs a design feasibility.

    Option 3; Would also need a feasibility but it will be a lot easier to respond to site constraints and opportunities with a 'clean sheet'. Could potentially design one smaller dwelling at the rear for the folks and one larger one at the front for yourself or to sell?

    Personally I'd go with option 3. Assume you folks are happy where they are for the time being, then you have a good run at going through planning the process which could take 12 months all up. If circumstances change you'll also have the option of selling with plans and permits or the dwellings as-is.
     
    lixas4 likes this.
  3. willair

    willair Well-Known Member Premium Member

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    Reason: Folks ageing, my folks still conform to Asian traditions of living with the son when in old age. Kids are 4 and 1, whilst still a long shot from high school, it has crossed my mind. I currently live in Chaddy, next suburb up, I've already demolished and built a few years back.

    If the block is all ready split on the title with 2 street number's ,then as I have a small understanding of Asian.s and the traditions then just sell the other block to fund the build as your family will take the walk-up level and the ground level will go too your Parents ..A few of the daughters mates at sunny-bank are starting to do this the same as their Vietnamese mates at Darra=== Inala..
     
  4. Paul Mete

    Paul Mete Well-Known Member

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    There are lots of pitfalls with development but hopefully great rewards!

    Without knowing a lot about your situation Option 3 seems the best result depending on if you can afford it.

    There are also variations on option 2 & 3 where the builder builds the new house/houses without you paying but keeps one for his troubles. We have facilitated this Joint Venture Arrangement in the past and even offered bonus payments to the property owner as part of the agreement to ensure it is win/win.

    Option 2 as a scenario can sometimes work against itself as often the lesser house devalues the new rear dwelling, this really depends on the actual site.
     
  5. See Change

    See Change Well-Known Member

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    what's the rules for Granny Flats in Victoria ?

    Cliff
     
  6. Peter_Tersteeg

    Peter_Tersteeg Mortgage Broker Business Member

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    I could be out of date, but I believe it's a case of the following sequence:
    1. Build the granny flat.
    2. Granny moves in.
    3. Eventually granny moves out.
    4. Demo granny flat and restore the back yard.

    Victoria doesn't really work for granny flats. What tends to happen more often is an awesome garage & man cave is built, complete with toilet, shower & kitchenette. This quietly becomes a second dwelling.
     
  7. Paul Mete

    Paul Mete Well-Known Member

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    Not sure!

    I think it is a council by council set of regs and it depends on whether you can convince them it is temporary or not.

    Not sure, I suggest you discuss it with local council.
     
  8. The Y-man

    The Y-man Moderator Staff Member

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