VIC Buying house in Indians preferred locality in Eastern Melbourne

I think you are forgetting that one of the OP's main concerns is getting a house in a neighborhood where his parents will feel comfortable.

 

Point taken

I will not use Indians word so liberally in my posts

 

I have discussed with a colleague of mine who is presently renting and also has the same budget and requirements as mine for a house
He suggested that we buy a house which can accommodate 2 townhouses, we demolish it and rebuild so that each of us have about 350 or so land and 1 brand new houses in our budget

If we pool our funds we have 2.2 M out of which we can use 1.5M for the existing house and 700K for construction and permits etc

Upon searching in realestate website, there are several houses on sale, which can fit in our overall budget

But how does one go about the next step in ensuring that the council will actually give the permission to build the 2 townhouses ?

What are the steps involved and the tentative costs involved at each stage of the process

Also both of us would need bank finance, so I hope that it will not be a problem in this scheme ?


Thanks Mate

 

Bad idea. Don't try to drive before you can even walk.

 

Are you sure you want to live next to your colleague?
(Posting / following as this thread is gold)

 

Hi OP,
Anyone who has built a new house can attest to the stress of the process - dealing with the council, builders, chosing the right team, making a gazillion number of decisions at each point like color of the walls, design layout, fittings and furnishings to the type of materials used.
Doing it alone is stressful enough, forget doing it with family or friends. In your case, the other party is a colleague hence the communication lines and trust in joint decisions is not even established that well.

Some other factors would be - will you build side by side or front and back units? Who will own which one? Will you establish body corporate or divide the land to have separate titles ( another process kicks in) Will you both spend equal efforts and time to sit jointly through every decision? If worst case happens and you don’t get equal finances (may not have same expenses)?

It is a bad idea and the risks overweigh the benefits. If it was so easy, just about everyone would be doing it. An easier approach is to execute the plan solo and sell the completed unit to the other party.

 

will require you find a land or old house big enough 600sqm (since you want approx 300sqm each) - then purchase together (2 names) which you will then apply for permits, build, subdivide and allocate 1 house each. As you're not doing this as developing to sell exercise, no necessity for a company structure.

The only question is it will take a while - Monash council is not one that will just push things through so quickly unlike some western melb council. Mate of mine took 1 year to get his permit to rebuild his house (in mt waverley), then you have to find a builder, contracts, and that will take time, build. by the time you finished- you're looking at 2-3 years. From the time you search, buy, settle, permit, build etc.

i think you would do a side by side (this type of sub division is popular in places like essendon etc) though not as many in eastern side. saw a few off power st in chadstone side by side. but you will need to find a land or house with a big frontage

 

If I execute the plan solo and sell the other house to my colleague, will I be subjected to capital gains or GST ?

Any idea ?

Thanks Mate

 

We have looked at properties with about 700SQM land

Although the possibility of getting a plot with a very wide frontage and thus side by side is remote, we are happy with one behind the other concept also with the person taking the front paying a premium to the one in the rear

I was under the impression that it would be 2 years from purchase to finish but would rework the numbers keeping 3 years in mind as suggested by you

Any other point I should be considering ?

Thanks Mate

 

Maybe get @melbournian to find such a property for you? The guy's a sage.

 

Get a good architect - and town planner who is familiar with monash. It would be best also to get a corner (since both would have frontages) and you have the advantage of minimal setback on the secondary frontage. a 600sqm would work.

 

The chances of us remaining colleagues for many years is not high as most employees in the IT industry have a tendency to move on in about 5 years

Moreover, we are in separate departments Also

Thanks Mate

 

What's with the "Thanks Mate" with every reply @indiantiger? Quite funny!

 

Any chances ?

 

Any recommendations?

Corner plots are doubtful as they are generally aggressively bid up by the builders as they can accommodate more houses in the same plot

For us paying that premium and yet having only 2 houses may not be economically wise

 

depends how the market is Glen Waverley is not exactly on the high. there is one for sale right atm.

more than suits your budget i suppose. you see if you get a corner - the build costs go down no need for long driveway and also less costs in setup services etc. you could even get a volume builder as well.

1 Gymea Court Glen Waverley Vic 3150 - House for Sale #128030790 - realestate.com.au

 

another one though smaller 445sqm- but still doable.

 

and another

 

DM him and find out.