Join Australia's most dynamic and respected property investment community

Logan Duel Key/Duplex or granny flat

Discussion in 'Development' started by YoungBull, 29th Sep, 2015.

  1. YoungBull

    YoungBull Member

    Joined:
    29th Sep, 2015
    Posts:
    17
    Location:
    NSW
    Hi guys, I have a corner splitter block in Logan, Marsden 994m2. Looking at 2 different options and asking for anyone online who had and any experiences and the best advice moving forward to maximise the investment.
    1. To subdivide with development of duel key-duplex which would have significant more costs around $300,000 for subdivision and development.
    Estimated end value $450,000 Rent $640
    2. Auxillery untit/granny flat under new Logan Planning scheme. Relocatable 2 bedroom flat (70m2) with assoc cost $80,000 Rent $290 End overall Value unknown.
    Option 1, would have significant more borrowings required, holding cost and would be a more stressful experience
    Option 2, Would have instant cash flow and higher yield but would create perhaps less equity than option one. I see on some threads subdivision may not be possible at a later date with the auxillery dwelling.
    Cheers
     
  2. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

    Joined:
    9th Aug, 2015
    Posts:
    471
    Location:
    Loganholme, Brisbane
    How did you manage to buy that corner block in Marsden...?! Your best option is to sell it to me hahahaha.

    Is there an existing dwelling there at the moment?

    Are you holding long term.....?
     
  3. YoungBull

    YoungBull Member

    Joined:
    29th Sep, 2015
    Posts:
    17
    Location:
    NSW

    Yes, there is a existing dwelling on the block that will be mostly likely be kept and stay to the side of the vacant block. The vacant block to the side of the existing house is on the corner part of the lot approx 500m2. The fencing as seen below lays on part of the lot that would be created and would be repositioned closer to existing house. In regards to holding onto or not, It will all depend on getting finance for development or not. I am looking at building plans with Dixon Homes and Aushomes for prelim work. Any advice on who would provide a better Duel Occ product would also be appreciated from any propertychat members.
    If option 1 is taken to subdivide and develop but finance is not available then i would have to look at selling as a house and land package to get the best value form the parcel of land and its if its worth my while..






    IMG_5192.PNG
     
  4. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

    Joined:
    9th Aug, 2015
    Posts:
    471
    Location:
    Loganholme, Brisbane
    If going for the aux unit I would approach council for a 100m2 granny flat, your block at 994 surely is close enough to 1000m2. A member from here told me that in Sydney unless your granny flat is built on a slab and not easily removed the bank may not like it, so a relocatable granny flat might be an issue for valuation on your site. Keep in mind that you can only have one 'vehicle crossover' i.e. driveway if you intend to rent the aux unit separately so you have to work out if your existing driveway is going to work, where will your tenants park for the aux unit, in front of the existing house...? Also you need to allow for 4 off street car spaces including 2 covered off street car spaces. I'd be looking at the subdivision myself to allow flexibility depending on the numbers and if it stacks up.

    Congrats on finding the site I wish I could find one like it, how long have you had it? Did you use a buyers agent or was it a normal listing?
     
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    1,169
    Location:
    Gold Coast
    dual key

    good luck with decent finance

    ta
    rolf