Converting old pub into flats/units.

Discussion in 'Development' started by Ryan Donnan, 4th Feb, 2020.

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  1. Ryan Donnan

    Ryan Donnan Member

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    Looking at buying an old pub and converting it into 4-6 flats/units. Have checked with council and the zoning supports it.

    Option 1
    is to bring it trades throw up some walls put in a kitchens and bathrooms.
    Pros cheaper and quicker
    Cons not separately metered so I would have to cover electricity and water.

    Option 2
    Go through town planner and architect/draftsman and builder.

    If l go option 2 do l see town planner 1st and will a draftsman be ok or will l have to go the extra for an architect keeping in mind this won't be The Block.
     
  2. Ross Forrester

    Ross Forrester Perth business advisor and founder

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    How much more capital growth does option 2 give you?
     
  3. spludgey

    spludgey Well-Known Member

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    Is fire rating going to be an issue?
     
  4. Ryan Donnan

    Ryan Donnan Member

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    Option 2 l would estimate overall value at 1-1.5mil vs 6-700k as the units would be able to be valued individually vs all in one sale. Although it would increase the cost by $300k.

    As far as fire rating goes option 1 would be not legally identified as individual flats more as a share house with individual kitchens and bathrooms. Hence the lower overall value.
     
  5. Ryan Donnan

    Ryan Donnan Member

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    Capital growth wise there wont be a lot more looking at it for cash flow. With a purchase price of $380k and allowing $400k for build (option 2) would be looking at a cash flow of $1200+ per week and each unit being valued at around $250k rough figures looking at recent sales and current rentals.
     
  6. Marg4000

    Marg4000 Well-Known Member

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    Option 1 may require boarding house approvals.

    Either way, fire safety may be your biggest hurdle and expense.
     
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  7. thatbum

    thatbum Well-Known Member

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    Uh when you say the council and zoning supports it, surely you don't mean they would support option 1?
     
  8. Ryan Donnan

    Ryan Donnan Member

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    No the zoning supports it being used for residential purposes.
     
  9. thatbum

    thatbum Well-Known Member

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    So is the real question is whether you should set up the multi dwelling rental conversion legally or not?

    Isn't that an easy answer?
     
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  10. Ryan Donnan

    Ryan Donnan Member

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    Also asking the steps involved in doing it legally who do l see and in which order. Do l start with a town planner or draftsman/architect or someone else and is there someone or something else I'm missing?
    As up stairs part of the pub is already set up with living quarters and accommodation rooms can l rent them out while going through the process of design and approvals process?
     
  11. Archaon

    Archaon Well-Known Member

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    Town-planner would be your first point of call, they will be able to help advise what you can actually do with the site.