Dual Key/living/Occupancy Home in Melbourne - Experiences

Discussion in 'Development' started by Samoz, 21st Jan, 2019.

Join Australia's most dynamic and respected property investment community
?

Is Dual Living thing worth it?

  1. I will do it

    3 vote(s)
    50.0%
  2. I will not do it for expenses

    2 vote(s)
    33.3%
  3. I have done it

    1 vote(s)
    16.7%
Multiple votes are allowed.
  1. Samoz

    Samoz Active Member

    Joined:
    11th Feb, 2017
    Posts:
    44
    Location:
    Melbourne
    Hi Guys,
    I have a huge 700 type block in Melbourne's west and had different plans but mind changed but now I am in a conundrum as to what I should do with this block. Problem is that it is a new estate and they wont let me subdivide but then I feel will it be worth building a dual key home on top of it? Has anyone tried it in Vic? I know it is big thing in Queensland but any experience in Vic? I know you need to have a smart architect and builder to dodge the rules but can anyone share their experience?
     
  2. lixas4

    lixas4 Well-Known Member

    Joined:
    24th Jan, 2016
    Posts:
    789
    Location:
    Melbourne
    Some questions to ask:

    - does the restriction/173 agreement (or whatever method the developer/council has used) specifically say you cannot subdivide? Or does it say you cannot build a second dwelling?
    - is a dual key counted as a second dwelling in vic? @Tufan Chakir probably knows the answer to this
     
    Stoffo likes this.
  3. Tufan Chakir

    Tufan Chakir Well-Known Member

    Joined:
    18th Aug, 2016
    Posts:
    877
    Location:
    Victoria, Australia
    Correct - you will need to take a careful look at your property Title. See and read carefully what the restriction says.
    If it is "not more than one dwelling" then dual key option won't help (as each is a dwelling)

    Dual key in Vic is really two dwellings....
     
    Stoffo and lixas4 like this.
  4. Samoz

    Samoz Active Member

    Joined:
    11th Feb, 2017
    Posts:
    44
    Location:
    Melbourne
    Thanks for your response guys. I am wondering what your experience has been to subdivide a block in a new estate? I was told that subdivision is not allowed but my block is approx 730sqm and with that size, there should not be a big issue in subdivision if it was outside the estate but inside the estate, I am not sure how can I get the approval.
     
  5. lixas4

    lixas4 Well-Known Member

    Joined:
    24th Jan, 2016
    Posts:
    789
    Location:
    Melbourne
    A planning permit is required for subdivision and for building two dwellings. A planning permit cannot contravene a restriction/covenant. So if a restriction/covenant states you cannot build a second dwelling, or subdivide, then you will not be able to, unless you get it removed. Which will probably not be possible if its a new estate and recently registered on title.
     
  6. GoldCoastBound

    GoldCoastBound Well-Known Member

    Joined:
    1st Sep, 2015
    Posts:
    177
    Location:
    East Coast
    @Tufan Chakir

    hello, i have a block in Victoria that can fit 3 units...due to me really only chasing cashflow, if i decide to build a NEW dual key house on the block, will it still need to go through the whole 12 month DA/permit process, or will a standard application for a house to council be enough?
     
  7. Samoz

    Samoz Active Member

    Joined:
    11th Feb, 2017
    Posts:
    44
    Location:
    Melbourne
    Any changes to your current structure require Council approval so I would not be expect dual key/dual occupancy happening until you complete the regular process. I hope this helps.
     
  8. lixas4

    lixas4 Well-Known Member

    Joined:
    24th Jan, 2016
    Posts:
    789
    Location:
    Melbourne
    You will need to go through a planning process for the development of 3 units under vic rescode, including clause 55 of the planning scheme (Home - Planning Schemes Online). Once you get a permit you can construct the 3 units.

    You also have the option of subdivision. A subdivision is the creation of three seperate titles that reflect the 3 units. You dont need to do a subdivision, you can keep the three units on the one title.

    If its cashflow you are after, it might be beneficial to not do the subdivision, and keep them on the one title. Note, if you subdivide in the future, the service authorities will get a say on the subdivision, and you may need to upgrade services connections to meet current guidelines. Example, electricity connection is now underground, however in the past it used to be overhead.
     
  9. Tufan Chakir

    Tufan Chakir Well-Known Member

    Joined:
    18th Aug, 2016
    Posts:
    877
    Location:
    Victoria, Australia
    Sorry, I've been away. More than on house (ie more than on self contained living unit) will require planning approval
     
    GoldCoastBound likes this.
  10. Marg4000

    Marg4000 Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    6,410
    Location:
    Qld
    Developers almost always squeeze every possible cent of profit out of a development. If you block was capable of being split in two easily and legally, you can bet your bottom dollar the developer would have done it.
    Marg
     

Buy Property Interstate WITHOUT Dropping $15k On Buyers Agents Each Time! Helping People Achieve PASSIVE INCOME Using Our Unique Data-Driven System, So You Can Confidently Buy Top 5% Growth & Cashflow Property, Anywhere In Australia