QLD Dual Income (not legal height)

I have seen properties advertised with tenants currently renting upstairs and down but the ad's are saying (downstairs, not legal height). Can someone please explain this to me? I get that the legal height is to be 2.4m and obviously isn't, but I'm wondering the implications of renting this out? is it actually legal?

 

Basically it can not be legally rented out as a separate residence. So, if you did find someone to rent it then insurance would be completely void, leaving you vulnerable. It is basically not really a realistic possibility of considering it as a separate residence if legal height is not met. Some people do rent them out, personally I wouldnt do it. In saying that, you could add extra rooms under the house and call them rumpus or storage to get extra rent in that instance.

 

Maybe not separately, however these properties do appeal to larger families, especially ones with older teenagers living at home. Does generally lead to higher rental return.

Beats a non-clad garage thats for sure.

 

I've got one like this - top and bottom are separate and can be rented separately. Height below is way under 2.4m. Oh, and there's no fireproofing between areas!
It's a single property (no body corporate), not designated flats or units, on one lease.

The way this is legal today is that council have deemed that the property is as it was designed, built and originally given certification of occupancy: at the time they were built they accorded with the ADR then (or whatever they were called at the time).
As long as I don't do major renovations, or at least keep the same footprint, I don't have to bring it up to modern code. I can advertise and rent them separately or together under the same lease, and if I sell I can sell them as a single 5-bedder or as a 3-bed over a 2-bed.

Now, if I were trying to have an existing property with separate rentals when it hadn't ever been like that, then all the modern rules and regs would be applied before council gave approval.

Note there's no way I'd take on the huge liability of doing it without council approval! You wouldn't be covered for insurance for either part for a start, and that's only the start...

 

Ho

how old is this house?

 

Built mid-late 60's, Brisbane.

 

Hi I am in slightly similar situation. Offer been accepted for a 5 bdroom 2 bathroom house, bank assesor said its 3 bed and 2 utility room. Agent claims it is council certified but owners dont have papers. Agent also says with new regulations from 1st of May 2019 height doesn't have to be 2.4 anyways...
I am not convinced and still under cooling off period ..
Whats the best way to check whether this is a 5 bed or 3 bed dwelling?

 

Yes BCC. Sunnybank Hills. Owners reckon paperwork lost, but had obtained approval about 15 years ago. I have engaged my conveyancing lawyer to contact theirs as I am still under cooling off period.

Banks reckon its worth 30 k less than my offer considering it as 3 bed not 5.

My intention is to get insurance for dual living and put two separate renters upstairs and downstairs.
As downstairs not bad looking with separate entries and deck etc..

Not sure I will be allowed by council or covered by insurance, if height becomes an issue. Thats the biggest factor.

 

Even if height isn't an issue, are you sure you're allowed to rent it out separately?

 

That'll be a very cheap mistake.

 

Cooling off period is 12th. If I withdraw my offer on 12th, can I get my 2k back?

Regardless I cannot buy a 3 bedroom property for the price of 5 bedroom.

Suncorp bank valued it at 550k , my offer was 575. Finance broker says we cant go above bank's valutiin, won't get money..... i was hoping that might help too.

Worst case, happy to lose 2k rather than purchase overpriced property.

Learnt my lesson for not doing homework i guess.

 

Are you able to kick in the $25k difference.if it means getting finance?

Your loss of deposit is a % of the purchase price, it may well be less than the deposit paid. Check the cooling off clause.

 

Lets see. I was hoping that subject to finance will help me here to get out. As bank is not ready to offer above 550k. Lets see what the convayancer says

 

I have made this mistake before. Bought a 4 bed earlier on (not doing enough due dilligence) to find out 12 months later was only a 3 due to not being legal, a quick call to the council to check files and reports and it had never been applied for. Agent marketed as a 4 and I just believed him. CoreLogic & any and all websites all stated a 4bed yet when it come to revaluing, they only based it off 3s only costing me about the same as what you are going through. I’d gladly go back and let the $2k go..

Are you subject to finance? Or building & pest?
Couldn’t you pull out of these clauses alone?

 

I am subject to finance and subject to building and pest. Have only signed the contract on 5th and cooling off period is 12th.
Lets see what happens, will inform you all.

 

Pull out as you can't get finance. To my understanding all it takes is a letter from your broker in Qld.

 

Yes as @wilso8948 said you could withdraw using the finance clause as your bank has not approved finance suitable to the purchase (smaller amount leaves a shortfall). In QLD I would normally think this means you get your deposit back. Check with your solicitor.

Talk to council directly about the approval, if it is approved (even if vendor lost his copy of paperwork) council will have a record of it.