Multiple dwellings and families on one property

Discussion in 'Development' started by The Y-man, 10th Jul, 2020.

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  1. The Y-man

    The Y-man Moderator Staff Member

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    To all the experts here - is it legal to have multiple families living on a single property with multiple buildings (in ANY state or territory)? Assuming everyone LIVES there as PPOR, and is not intending to sell as such - so NO subdivision....

    i.e. 5 families pitch in to buy a big farm, builds 5 houses on it (each to their own needs be it a small thing or big thing) and lives there.

    The Y-man
     
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  2. Archaon

    Archaon Well-Known Member

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    keen to know as well, some rural zones suggest that secondary dwelling is permitted with consent, but secondary dwelling suggests rent out seperately.

    I'd imagine you wouldn't be able to rent to multiple different entities on leases, but im not sure if the DA's would get approved.

    How about building insurance etc?
     
  3. Mark F

    Mark F Well-Known Member

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    You planning to set up a commune? I always suspected you were an old hippie. o_O

    It can be done. Community title rings a long dormant brain cell.
     
    Last edited: 10th Jul, 2020
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  4. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    In my semi rural area you can have a house + larger than normal granny flat + accomodation for workers. However they are very very keen for you to not get the impression that having multiple dwellings gives you any rights to subdivide and to ensure that they like to impose things like - granny flats must be within 25m of the main dwelling and so on.

    There have been allowances for farming estates that are handing down generationally for small lots to be carved off for parents to live in a PPOR and then the rest of the farm is allowed another PPOR.

    But otherwise it is up to the local council to determine if they would allow multiple houses and how they would control and govern that. Multiple houses on one lot only gives them one set of rates but multiple people using their infrastructure - how would you manage water/gas/electricity with one connection/
     
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  5. lixas4

    lixas4 Well-Known Member

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    Vic has similar rules to what @Westminster stated above with the small house lot to allow multi generational farming etc.

    Generally, the planning is set up that if you can subdivide, then you can build a new house. And if you can build multiple seperate dwellings then you can subdivide. Having multiple and seperate dwellings when you cant subdivide is different and I'd like to hear what the vic planners on here say, @Tufan Chakir @James Cavill

    My understanding of farming zones was that there is a minimum lot size for subdivision, and also a permit requirement to build a house on a lot smaller then the min sub lot size, resulting in you only being able to build and sub to the same size, which means the multiple family dwelling idea might not work in vic.
     
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  6. wylie

    wylie Moderator Staff Member

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    My friend has acreage at Logan with two houses, one smaller than the other. They did check that this is allowed and found a few other properties with a similar set up.
     
  7. Beano

    Beano Well-Known Member

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    I missed out on buying several block of land (3) that had over a hundred units on them.
    Each of the units had their own (leasehold) title.
    Land was undivided
    One of the ones I missed out on was later subdivided (the lessors interest)
     
  8. Zimplestiltskin

    Zimplestiltskin Well-Known Member

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    Well you can setup a bunch of tiny homes on a plot of land, they are technically caravans if on wheels.
     
  9. Tufan Chakir

    Tufan Chakir Well-Known Member

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    In Victoria...if you have/want more than one dwelling/house on a block you need planning approval. A house is defined by the planning control, and loosely is a "self-contained living unit". In rural areas, multiple houses on a single lot (doesn't matter what size real) is impossible. You can apply for "group accommodation" but that's for houses for people away from their normal place of residence. In urban areas - it's just multi-unit/dwelling development, again subject to planning approval, but the planning controls don't care who occupies or the relationship between the parties. The shared option described by Y-man may be theoretically possible, but it's not something contemplated by the planning controls (which are effectively the same throughout the state). Great idea though
     
  10. Archaon

    Archaon Well-Known Member

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    @Tufan Chakir @lixas4 could a community title subdivision work in this instance, I had a quick glance at it saying it was applicable in rural zoning etc.
     
  11. Rugrat

    Rugrat Well-Known Member

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    It will come down to whatever local council regulation is in place.

    I know in QLD, extended family of mine own extensive agricultural businesses with extensive property throughout the state; and they have multiple houses on all of their different properties. They use these residences for family and workers. Not sure about all the ins and outs of it though.
     
    Last edited: 30th Jul, 2020
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  12. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Firstly PPOR is a state land tax term. Only a legal owner can also have a PPOR for land tax (sort of). And only a person with a interest in the land can have a main residence CGT exemption. eg land title, company title right, strata interest.

    For land tax and CGT purposes the multi-family and single legal title would likely have concerns for either or both tax issues

    There could also be trust issues that emerge. eg If A, B C & D pays E and E is the sole legal owner and E gives each of A, B C D a right, it could be that the land is held by E on trust for A-D. That could pose issues under some state laws concerning land tax etc. And rights of A-D may be less than secure. eg Council could order A-D off the site and recourse may be limited. E may also have a bigger tax issue that the assumed exempt main residence exemption. As each dwelling is not 100% used by E then its not 100% exempt. And A-D may have no inteerst to be exempt. All that may exist is a CGT right.

    Land tax laws concerning argicutural / rural land and also the 2Ha CGT rule may also arise

    I question why anyone would seek to pay to acquire a non legal interest this way
     
    Last edited: 30th Jul, 2020
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  13. Tufan Chakir

    Tufan Chakir Well-Known Member

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    Don't know of that term in Vic. Could be a NSW thing?
     
  14. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    Community titles are a NSW thing and wont apply to land as proposed.

    A community title in NSW relates to properties with at least two lots that share a common area, such as a driveway, pool, park or recreational land. It usually refers to large estates which could include several residential lots as well as common area for use of its "members". Community halls and spaces and pools are also common. eg Many at Kellyville Ridge and Blacktown Council. Its like strata but with a personal title and also common areas where all owners have a use entitlement to that common area. Community Title scheme are members of the Community Association
     
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  15. Archaon

    Archaon Well-Known Member

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    Cheers, I was reading a local DCP and it said it applied to RU1 RU5 E1 E2 E3 etc zones.

    I was thinking it was in regards to setting up a gated community etc.

    So if you were able to do this on a large rural property where everyone would need to have the sewerage pit/septic tank as common property, as well as roads, fences, gates etc.
     
    Last edited: 31st Jul, 2020
  16. Raymond George

    Raymond George New Member

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    I’m wanting to gain 3 dwellings of any combination on a 557m2 block in Bulli. All for my own family..
    Architects just can’t think outside the box…
     
  17. Tools

    Tools Well-Known Member

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    I know a wealthy family who own land (acres) at Margaret River and wanted to build 5 substantial houses on the site - one for each family (grandparents, parents, kids and their off-spring) as a private holiday resort (as you do). They got knocked back and I think the current design is for 3 homes, one much larger than the other 2 and with common areas as I understand it.

    Tools
     
  18. Cray010

    Cray010 Well-Known Member

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    For NSW, my understanding is that as long as these buildings have been legally built (with DA, OC), then multiple related households can live there as PPOR without any need for subdivision. CGT exemption (currently) still applies as long as no one is charging or paying rent.

    However, doing this can be a recipe for disaster from a family perspective. What happens if there is a divorce or a family fallout, who gets what and must everyone sell?

    What happens if a specific member has made considerable improvements on the land, can they claim an additional share of any CG?

    If you’re hoping to do this with your children, are you also trying to tie them down in some way?

    I’m asking because I had the same thought but again, I’ve been warned against placing a burden on my children.

    No, you can’t do this unless you own a caravan park or camping ground (at least in NSW). Only one tiny home is permitted if the tiny home is occupied by family members.

    If they’re intended to be occupied by strangers, then two homes are permitted and there is a maximum time limit a person can stay there (2 days).

    There are very limited exemptions but they won’t apply in most situations.

    I did a lot of research on tiny homes before. I was looking at whether we could provide homeless shelter via tiny homes on our properties. Regulations were too restrictive.
     
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  19. Terry_w

    Terry_w Lawyer, Tax Adviser and Mortgage broker in Sydney Business Member

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    Yes its legal. But whether you can build multiple dwellings or not is a different question
     
  20. Paul@PAS

    Paul@PAS Tax, Accounting + SMSF + All things Property Tax Business Plus Member

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    When there is one large title and multiple dwellings with multiple family can raise loads of issues around finance and difficulties such as the NSW land Tax exemption etc (It will NOT apply as 100%). Sometimes people jump in using informal family methods and get smacked into reality later when issues become evident. eg Other family dont own anything, finance and refinance and even the lenders may not see a single title with 4 homes the same as 4 seperate homes and family disputes where kids have paid for something they dont own etc. Councils can have some rules too and even services into site. eg Power can be costly to connect and one meter and so on....Some councils may allow subdivision to smaller lots and some will not.

    Title can be partitioned which may assist some matters. Its like dotted lines on a title deed but it is often conditional on future subdivision. . Start with legal advice.
     
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