Logan Highset Home with Granny Flat as Auxiliary Unit

Discussion in 'What to buy' started by radioactive, 13th Jan, 2020.

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  1. Rich2011

    Rich2011 Well-Known Member

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    Yes. Accepted development means if the building (house/granny flat/auxiliary dwelling/secondarydwelling/dual occ etc) meets standard criteria it gets certified by the independent certifier then the documents are lodged with council to show what's been done.

    In the case of the property you are looking at if it's not certified as a GF/Aux dwelling you cannot legally rent to second group, simple as that despite what the agent says.
     
  2. radioactive

    radioactive Well-Known Member

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    Thanks!
    Makes perfect sense now.
     
  3. wylie

    wylie Moderator Staff Member

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    Tell the agent this cannot be advertised as such so he/she can’t say the same thing to other potential buyers.
     
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  4. radioactive

    radioactive Well-Known Member

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    Surprising as they shamelessly lie thinking someone would buy it. I guess its off market for a reason:)?
     
  5. Angel

    Angel Well-Known Member

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    The mystery develops...

    If this property is off market, then how do you know about it in Perth?
     
  6. Archaon

    Archaon Well-Known Member

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    The Selling Agent would say "That is what the vendor told me..." to remove their liability.

    As said above, you could tell the Selling Agent that it is not an approved GF so they cannot continue advertising as such, that will make them liable if they keep doing so, as the SA is making misleading claims with knowledge otherwise.
     
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  7. Rich2011

    Rich2011 Well-Known Member

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    What was the outcome of the inspection yesterday...?
     
  8. TMNT

    TMNT Well-Known Member

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    "STCA" , the magic word used to (i see less now),

    Means "i am/could be lying, this is my acronym to not be held liable for any BS i might say"
     
    Last edited: 16th Jan, 2020
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  9. radioactive

    radioactive Well-Known Member

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    Finally Selling accepts that gf is not approved but claims that people in gf and highset house are related and two leases are there for the sake of convenience lol.(another excuse to make it look legal)

    The house is itself seemed OK with numbers stacking up very well.(8.4% yield at conservative rents).The reno was cheap DIY.The height is legal and they did this by digging underneath by 10cms.There were some cracks which needs to be thoroughly inspected during B&P.

    As far as granny flat is concerned its not approved.So i have requested for drawings and plans so that town planner/certifier can see the possibility of it being approved.
     
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  10. radioactive

    radioactive Well-Known Member

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    I was on the mailing list of the agent and had called for another property but numbers didnt stack up and he introduced this one.
     
  11. Angel

    Angel Well-Known Member

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    Hi and thank you for the updates.

    I would be very concerned about the "digging underneath by 10cms". If the owners have done such a dodgy job already, I would suspect any digging down under the house will not have been done correctly. Can you imagine what else could possibly go wrong with this?

    Have you also checked out the comparable sales and rents independently?

    I still want to know how the GF you mention matches the house plan you provided. Is it built up in the air or on the ground?
     
  12. radioactive

    radioactive Well-Known Member

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    Hi @Angel
    Thanks for response.
    I believe if its dodgy then it would have impact integrity of overall structure.
    I would definitely be getting a professional opinion on this once I sort out the granny flat.

    The agent was giving convoluted explanations on floor plans and I asked to open up the domestic housing factsheet and he then agreed that its incorrect...says it was created by IT guy who doesn't understand dwelling LOL.So floor plan is correct but no of dwellings are misrepresented.

    So it's a highset house with a granny flat on the back.It has a driveway adjacent to main house as shown in photo.

    upload_2020-1-16_1-54-59.png
     
  13. Marg4000

    Marg4000 Well-Known Member

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    Your biggest problem will be with insurance in the event of a claim. Unauthorised or illegal works will usually void your policy, leaving you fully responsible for any repairs.

    You don’t even want to think of the consequences in the event of a tenant injury.

    To be on the safe side, I suggest getting the property officially certified as fully compliant, even if not required by the council. Apart from protecting your interests, this will assist resale.

    Of course the return is high - this is a huge red flag waving in your face.

    Obviously, if the work was legal, the asking price would be much higher.
     
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  14. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    I have my 2 cents on there being no fire separation between the upper and lower floor and the wall where the downstairs GF joins the other part of the main dwelling
     
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  15. radioactive

    radioactive Well-Known Member

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    Thanks everyone.

    So the sellers agent confirmed from the owner that they don't have any approvals and nor do they have any drawings or plans available.Its quite surprising.

    However,owner has permitted that sellers agent may arrange a town planner to inspect the site tomorrow and provide and an opinion on the possibility of the approval.
    Sellers agent is getting site inspected by town planner tomorrow.
     
  16. gach2

    gach2 Well-Known Member

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    What returns are you expecting
    While Logan has its risks your not going to get anything over 7% return unless you turn to dodgy multiple private leases

    could be wrong but 2019 was the year to buy in Logan but I believe prices are increasing (very minimal to compensate previous losses) and rents lowering 5-6 will be new norm in the area
     
  17. Rich2011

    Rich2011 Well-Known Member

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    You can get over 7% without dodgy leases but its not east to find them. Need to buy very well and add value via a renovation. A straight buy and rent will be lower.
     
  18. gach2

    gach2 Well-Known Member

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    Possibly but it wouldn't be returning over 7% at the time of purchase
     
  19. Rich2011

    Rich2011 Well-Known Member

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    Not at the time of purchase but after a quick makeover it will be. I just did one @ 8.9% gross yield on a standard residential 3 bed house. Rare as hens teeth but when they come up it's great to grab them.
     
  20. gach2

    gach2 Well-Known Member

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    impressive willing to share purchase cost, Reno cost and description and rental?
    Sounds like a cracker, dual living on single lease?