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Dual occupancy in Melbourne

Discussion in 'General Property Chat' started by MissyD, 6th Aug, 2016.

  1. MissyD

    MissyD New Member

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    Hello. I am trying to find out methods for dual occupancy in Melbourne to help the yield along. I'm coming up with nothing except for subdivision (expensive). I've found houses that say they have permits to build a dwelling at the rear but I'm wondering if that means that it is just for relatives to use the dwelling and not to rent out to an external tenant.

    Would a granny flat be an approved dwelling? If not a granny flat, how much does it cost roughly to build a rear dwelling without being fancy?

    I've searched on duplex pairs and can't seem to find them in Melbourne. No dual key properties that I can see. Should I give up on Melbourne?

    I would love to hear from someone who knows how to do this.
    Thanks
     
  2. Cactus

    Cactus Well-Known Member

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    Depends on the size but say 3/2/2 would be circa $200k for nothing fancy with driveway and services.
     
  3. Connor

    Connor Well-Known Member

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    Dual occs help yeild along nicely.. Personally I wouldn't do a dual occ tho based on yeild only. Ive always factored in a decent equity gain in addition to yeild.
    In Melbourne I'm finding it's just getting harder and harder to find a potential dual occ property that will leave you a decent equity gain after your done.

    If it's just yeild your focussed on tho, that's pretty easy. Just find a property within the suitable planning zones with enough land for second behind it. Find a draftsman and follow the local councils planning procedures.
    There's no need for sub division if you're just going to rent them out.

    If you find a property with permits already in place, even better... But generally you will pay more for this.

    Forget the granny flat idea in Vic.. They are not allowed to be leased out seperately to unrelated parties. And in my opinion, spending a minimum 70k plus on something that adds negligible value to your property is just burning money.
     
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  4. MissyD

    MissyD New Member

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    Thank you. Do you know a good builder you could recommend? Is this something you could contemplate doing from Sydney? Would you have to appoint a Project Manager? How much would that cost?
     
  5. MissyD

    MissyD New Member

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    Thank you Connor. I've read that doing this kind of thing can limit the number of potential buyers because not so many people want two houses on the one title. I guess that could impact on the sale price eventually but that could be 20+ years down the track. Maybe it is worth doing if it makes it easier to hold the property and pay down debt.

    Of course, I'll check with council but do you think that the permit means a dwelling for another family member?
     
  6. Skilled_Migrant

    Skilled_Migrant Well-Known Member

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    If you want to sell, there is nothing preventing you from separating the titles once constructed.
    It is a straightforward application to council from the land surveyor and once council agrees lodging with the titles office. About 4-6 weeks and 3-5K
     
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  7. Cactus

    Cactus Well-Known Member

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    Many people here develop interstate. I never have so not sure of the logistics. As for builders get a local drafty and ask them for recommendations.
     
  8. Colin Rice

    Colin Rice Mortgage Broker Australia Wide Business Member

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    @MissyD this seems like a ^^^^^ plausible idea to me as a seperate title should add masive value.

    I also think that this type of dwelling, assuming its modern will be more and more desirable as time goes on. Its a viable alternative to getting an new apartment for around thw same price. I know I would prefer a small, modern, comfortable small house over an apartment.

    Ps. not familiar with the planning laws in Vic.
     
  9. albanga

    albanga Well-Known Member

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    Not sure why Anyone would ever build at the rear and not subdivide? So much equity to be made in what after construction should be a fairly straightforward process.
     
  10. Joynz

    Joynz Well-Known Member

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    if you build at the rear, make sure you are upfront with Council about the intention to subdivide later - in case you get caught out by different requirements.