Hi Guys, I need your expert advice. I have a decent block of land in a new estate. Size is 730sqm. Now, given it is for new estate developers don't allow me to subdivide it. I was not looking to live there and was looking at a couple of options. Option 1: Build a normal house and rent it out. Option 2: Build Duplex and rent it out to get two income from same block Option 3: Sell the land as it is. Now I am thinking what would you do if it was your block of land? The property is in Truganina and I bought this block for close to about 400k. The median price for that for 4BR is close to 565K. These houses are half of that block size. If I build something bigger for that to be sold, I will cost me a lot of money. The market will also be restricted for that price. I am not sure what to do with this kind of block and if you would build a duplex or have done something different in this situation and felt successful afterwards. Let me hear from you guys. Cheers
How much will it cost to build duplexes? Will the rent achieved make it worthwhile? How much would you get if you sold as is?
I would check the title. Generally for new land releases there is a restriction that says something to the effect of "not more than 1 dwelling may be permitted on each lot" or "a building must be constructed in accordance with the memorandum of common provisions" - which may say the same thing. That would rule out option 2 completely.
It will depend on your short, medium and longer term goals and the potential profits involved in regards to what option to pursue?
Good question, I bought it first to live but then changed my mind and now all these options coming in.
Ok I will check that. But I think people can still make two separate living spaces under one roof and make facade appear as if it is one house. I have checked with the estate people and completely ruled out the subdivision option. I am thinking in future there will be a train station nearby so if I build rental properties here, they can go for really nice value given any investor would like to buy them for their positive cash flow and then keep it for 10 years.
If it were my block I would have this already planned out before I bought the block, In any case, you need to do a feaso to see which option stacks up best, with risk Vs return as your primary point of analysis. I would investigate the duplex option to see what the numbers are like. If nothing stacks up well then you have 2 options, hold the land long term or sell. If it were me and there were no prospects of the land yielding a decent return in the short term I would sell it. But that is because I don't want to be holding land that causes me outgoings with no income and bleak prospects of a profit any time soon,
It's not about what it looks like. Two self contained houses/units, even though they look like one under one roof will still be a problem. If the title says "not more than one dwelling" you have a problem with two houses, no matter what they look like. Check your title details.
it is not possible to do a duplex in housing estate unless the covenant has expired or if the estate guidelines allows it to be done. if this was not the case - ppl would be buying 700sqm blocks and dividing it into 3 houses or townhouses.