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Difference of Approved as 'Dual Occupancy' vs 'Subdividing'. QLD

Discussion in 'Development' started by Andrew H, 7th Apr, 2016.

  1. Andrew H

    Andrew H Well-Known Member

    Joined:
    4th Jul, 2015
    Posts:
    204
    Location:
    Cairns, QLD
    We have an existing IP with an approved Granny Flat. The new Cairns Plan 2016 says that my zone + size block allows this to be leased as Dual Occupancy and is the Dual Occupancy code is SELF Assessable. Only a few small things need to be done to meet code.

    However i'm confused if there is a difference between getting it 'Approved' as 'Dual Occupancy' as per the attached from Cairns Regional Council and Subdividing it.
    It seems if getting it approved means i'm up for Infrastructure Costs and application costs 6k + double the Coucil Rates costs! as ongoing.
    Aren't these costs only used if want to subdivide it?? and have two seprate titles? I'm getting the runaround a bit as its so new here, but thought i'de have better luck getting a decent answer here!

    The numbers just aren't adding up, with the increased rent and ongoing rates costs seems hardly worth it.I'm not even building anything! All i want to do is lease the house and granny flat seperately!? Then do a re-val and equity pull. Help please :)
     

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  2. HUGH72

    HUGH72 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    2,125
    Location:
    FNQ
    I have only had a quick look, I'm not a town planner so I could be wrong.
    I have always gone into the Cairns council building and personally spoke with a town planner to understand what is required.

    Secondary dwelling cannot be self contained and therefore is not on a separate lease.

    A dual occupancy is a lot containing 2 separate dwellings, each are self contained and metered. They are leased separately.

    A dual occupancy just looks like 2 dwellings on one title like a duplex/triplex etc or it could include 2 separate villas, townhouses etc on one title. As you said subdivision is only relevant if you want separate titles so you can sell one. With separate titles you will have individual rates notices for each. On one title you will have one rates notice but it will most likely be slightly higher than if you only had a single dwelling on the block.
    Sounds like what you are trying to do shouldn't be that hard, have you only made a call or attended in person. You need to speak to the right person, there is plenty of dead wood in there from my limited experience with them.

    It can be frustrating dealing with councils.
     
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  3. Andrew H

    Andrew H Well-Known Member

    Joined:
    4th Jul, 2015
    Posts:
    204
    Location:
    Cairns, QLD
    thanks @HUGH72 Just got off the phone with them (again). Looks like i will be up for Infrustructure costs and the increase in rates. with no building and a 10% gross yield the property will only be neutral cash flow. The other issue is its hard to find comparables for this one. As its a 5 Bed, 3 Bath (inclusive of the 1 bed, 1 bath being the secondary dwelling). We got it for a great price so, just waiting on a couple of RE market appraisals to see what they come up with. I've instructeded them to be conservative. So unless a make a big jump in Valuation i might was well save the extra work and hassle and just renovate and leave as a 5 B 3B house.