New trial Granny Flat rules for Victoria

Discussion in 'Granny Flats' started by craigc, 18th Sep, 2020.

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  1. craigc

    craigc Well-Known Member

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    I thought this would have gained more attention but I can't see an existing topic on this. It may have slipped under the radar given everything else going on in Vic at the moment.

    If expanded, I believe this could be very significant changes to those with some space in their back yard and looking to potentially increase their yield.

    In summary:
    Released 04/09/20 is a trial 6 month program in certain councils to allow granny flats up to 60m2 to be built and separately rented out to separate parties to the main residence without requiring subdivsion.

    Only being trialled in a limited number of councils, includes Murrindindi, Moreland, Greater Bendigo and Kingston.

    Proposals are still required to comply with existing open space and overlooking guidelines.

    Details per attached:
    Secondary Dwelling Code

    Will be interesting to see where this goes after the 6 month trial. My guess would be likely to expand or otherwise disappear.
    The short period would however limit the number of applications likely to be received as anyone would need to be ready to move quickly if they were interested in this option under the trial rules.

    Thoughts @Tufan Chakir @lixas4 ?
     
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  2. lixas4

    lixas4 Well-Known Member

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    Wow thanks for sharing thats the first ive heard of it.
     
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  3. craigc

    craigc Well-Known Member

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    Only heard of it from a person in planning. I was also surprised it hadn’t already been flagged here.
     
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  4. skater

    skater Well-Known Member

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    So, it's a trial for 6 months? What happens to those who do build a GF after those 6 months if they decide not to continue. Will they still be able to rent it out to separate parties on an ongoing basis, or will they have to cease to rent it out?
     
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  5. Tufan Chakir

    Tufan Chakir Well-Known Member

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    At 60sqm it's quite small - one bedroom/studio type.
    The trial relates to applications being classed VicSmart applications - basically no advertising (therefore no objections) and a (supposedly) 10 day Council approval process. It still needs to comply with clause 55/rescode, so siting.site coverage etc issues will still apply, as well as car parking (the big killer) and open space requirements, as far as I can see.
    If it doesn't meet the usual standards it becomes a "normal" second dwelling applicaiton.

    It's a slow move in the right direction.

    The trial is only about the processing, not about approvals or what happens next
     
  6. craigc

    craigc Well-Known Member

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    Hi @Tufan Chakir - thanks generally agree but I noticed under the ‘parameters that must be met’ explanation it says:

    A secondary dwelling will not require a car space under Clause 52.06 or any other provision, and a subdivision must not create a new lot which only contains a secondary dwelling.

    I read this as it won’t need car parking for the GF but is there somewhere else that contradicts this?

    It also mentions will require it’s own food preparation facilities (kitchen), toilet, shower/bath & handbasin. But I didn’t see anything regarding only studio / 1 bedroom.
    A number of the GF builders in Moreton bay are putting efficiently designed 2 bedders onto 55m2 so I would think a max 2 bedder would be possible (and likely more desirable).
    Is this possible from your reading?

    Agree with the rest about open space / site coverage etc and with a 5m height limit I would think this restricts the number of possible applications.


    I would think if it was build compliant with the rules at the time, you could continue to rent it out, but that’s only my thoughts as common sense. Otherwise nobody would bother.
    It could of course be very different in the planning scheme and legislation of course. I haven’t seen that addressed in what I’ve read so far.

    Only thing I can see now is it is classified as a ‘secondary dwelling’ on the same lot, previous GF’s in Vic were classified as ‘Dependant persons unit’ so that I guess is how they could be stopped for future if desired but still allow those built to continue renting out desperately.
    Some of the experts could clarify this though as I’m not a planner.
     
  7. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    That is pretty exciting news! It would be better if it was 70sqm but 60 is still very doable. Perth had 60sqm for years then a few years ago changed it to 70sqm which meant 2 beddroom GFs became an optiob
     
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  8. Paul@PAS

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

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    Seems to be a little like a NSW CDC....A complying development that doesnt need full planning permission IF it complies in all of the concessional ways. Still needs approval but its a fast track. . It wont stop those 60m2+ or two level. They will be a standard development approval. ie Different pathways for approval

    CDC in NSW can be approved by a certifier. Perhaps thats also the future path for Vic ? Allowing private certifiers to vet and approve Clause 51.05 secondary dwellings IF they meet complaince in all aspects ?
     
    Last edited: 21st Sep, 2020
  9. craigc

    craigc Well-Known Member

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    Hi @Paul@PFI I don’t believe even with standard development approval can have greater than 60m2 or 2 stories in Vic for a ‘secondary dwelling’ in Vic.
    This is the only trial method I am aware of (short time & limited councils) but otherwise not available in Vic.

    Note can build ‘dependant persons unit’ currently (subject to etc) but not for seperate rental.
    Planners may be able to confirm further when they hear more.
     
  10. bluesparkJohn

    bluesparkJohn New Member

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    Insurance Companies are not liking this one bit. I have shopped around for insurance and because you will now have two different tenants that are not related to each, one in the GF and one in the main house. I'm yet to find an insurer who will do this.
    But, the rules are different if you have a family who is actually the dependent. old GF rules.
     
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  11. bamp

    bamp Well-Known Member

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    Would that be because this is only a trial, and not approved/legal yet in VIC?
     
  12. bluesparkJohn

    bluesparkJohn New Member

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    I think this is all fairly new to all. I have managed to get Budget insurance and their pricing was reasonable. $1000 to cover both buildings, It did exclude items on the Landlord insurance due to the Current Covid-19 events, but. even adding an extra $1000 on to the quote I could still yield quite well after cost. They also covered 20 million in public liability.
     
  13. euro73

    euro73 Well-Known Member Business Member

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    There are tens of thousands of granny flats leased to seperate tenants throughout NSW - no issues with insurance

    CGU . AAMI . NRMA are just three examples of insurers that have provided coverage to my clients . CGU are generally the most competitive
     
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  14. bamp

    bamp Well-Known Member

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    The trial should be almost over now, right? I wonder what the results will be
     
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  15. geoffw

    geoffw Moderator Staff Member

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    One was found guilty?
     
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  16. Lucas100

    Lucas100 Member

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    I contacted the planning department and the minister is making an announcement shortly. Not sure if this is weeks or months away but a decision is comming soon. Fingers crossed this is a game changer for dramatically increasing yields on property.
     
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  17. bamp

    bamp Well-Known Member

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    Not just about money as well - would be great given I've seen a few articles about parts of Melbourne and regional Vic being in an affordable housing crisis as landlords sell during a boom and kick tenants out - good luck once the border reopens next year if we don't do something like this!
     
  18. Lucas100

    Lucas100 Member

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    Yeah I agree. I want to build one for an aunty but don't want it's use limited to a dependent person as it makes the outlay useless after it's use as a DPU. The fact it can be rented out makes it a win win. It's a must in Victoria.
     
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  19. Luca

    Luca Well-Known Member

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    what will be the minimum requirements to build a granny flat e.g. land/setback? I guess we will see an additional increase in properties where you are able those.
     
  20. Lucas100

    Lucas100 Member

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    Not sure in Victoria.
     

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