Granny flat Victoria

Discussion in 'Legal Issues' started by Spiralkut, 12th May, 2020.

Join Australia's most dynamic and respected property investment community
  1. Spiralkut

    Spiralkut Well-Known Member

    Joined:
    12th May, 2020
    Posts:
    142
    Location:
    Melbourne
    Hey guys,
    I currently own a property In Mildura that I would like to build a granny flat out the back and rent to increase my cash flow. I'm aware that Victoria's laws state I cannot rent a granny flat however it's come to my knowledge that people have done so in these country towns by getting approval from the council first. I was just wondering if I had the approval from Mildura city council is there anything I would need to worry about in regarding this, or is the written approval from council enough for me to be in the clear?
     
  2. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    Do you know the planning criteria to qualify for that sort of planning approval? Technically its possible anywhere, but subject to the criteria that the planning rules assess it against.
     
  3. Spiralkut

    Spiralkut Well-Known Member

    Joined:
    12th May, 2020
    Posts:
    142
    Location:
    Melbourne
    Are you talking in terms of approval for building? If so I know I fit the requirements to build its merely whether or not I will be allowed to generate a rental income from it. For what I can see the state laws say no however like I said I know people who have done it in Victoria by getting council approval. If that's not what you're asking then you may have to dumb it down for me.
     
  4. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    I mean in terms of the planning rules on a "granny flat" that you can rent out separately.

    Do you know how the people you know got the "council approval" that you're talking about?
     
  5. Spiralkut

    Spiralkut Well-Known Member

    Joined:
    12th May, 2020
    Posts:
    142
    Location:
    Melbourne
    I'll have to talk to them and confirm 100% but one said before "I contacted council and checked if they would allow me to rent it out before doing the town planning and getting plans approved by a certifier."

    As for the terms I cannot answer this as I haven't rang the council yet.
     
  6. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    5,850
    Location:
    Perth, WA
    That's what I'm getting at - there will be a planning scheme that will say whether its allowed/not allowed/possibly allowed. It might be on a spectrum too, rather than just Y/N.
     
  7. Spiralkut

    Spiralkut Well-Known Member

    Joined:
    12th May, 2020
    Posts:
    142
    Location:
    Melbourne
    Contacted council today and they won't allow it because of state law. Looks like I'll be subdividing and building instead. Cheers.
     
    Archaon likes this.
  8. Archaon

    Archaon Well-Known Member

    Joined:
    20th Mar, 2017
    Posts:
    1,896
    Location:
    Newcastle
    Make sure you run a feaso to see if it is worth the effort/time/money/risk.
     
  9. Spiralkut

    Spiralkut Well-Known Member

    Joined:
    12th May, 2020
    Posts:
    142
    Location:
    Melbourne
    Yeah I did a feaso on both options previously.
     
    Archaon likes this.

Price Accounting are a leading tax service for your property + tax issues. Contact Paul@PFI for property focussed tax services using our client portal access, digital signing and checklist based approach for best pricing. Free client pack included.