Options for duplex property in Perth (Carlisle)

Hi all,

I’m evaluating options for my properties in Perth if I should plan to develop in the next few years, just sit and wait, or plan to sell it.

Property details:

• Both sides of a 1970’s duplex (2 bedrooms, 1 bathroom)
• Located in Carlisle, Town of Vic Park
• Total land area from the title is 871 sqm, 25m frontage (note that intramaps shows land area of 885sqm) see attached picture
• Strata plan title, R30, not a corner lot
• Both units are rented out

Questions I have:

1. Which land area is more accurate, the 871sqm from the property title or the 885sqm from intramaps?
2. If 885sqm from intramaps, is it realistic to further subdivide and place 3 dwellings? From the R-codes min area is 300sqm but there is a 5% variation. I would need the full 5% variation to comply.
3. Is it an outrageous idea to rebuild two new dwellings with two granny flats to achieve dual occupancy? As commented in another post, it could be hard to sell so this may be an option only if intention is to hold
4. Would it be a good idea to approach the owner at the back of my property to try to buy it? It is half a duplex with the other half has been demolished and new build. Land area is 422sqm. Will this allow 4 dwellings to be built?
5. Has the cost to build dropped given the depressed Perth economy hence a good idea to build within the next couple of years?
6. From this thread, a project manager was suggested. Is there a usual order of getting help in development project?

Clearly I’m quite green at development and am grateful to hear your thoughts.

 

1. No idea really. Maybe the title? You should try and figure out why its different.
2. Maybe.
3. Probably
4. Probably not.
5. It might be cheaper, but that doesn't mean you should build for the sake of it.
6. You really need to work out the feasibility and your strategy moving forward first.

Have you crunched some numbers first? Really a lot of the answers are dependent on the numbers you can estimate for cost vs reward.

 

Go with the title/Landgate every time. Intramaps sometimes displays the incorrect lot area.

 

Any ideas to figure this out? I am thinking to give council a call to speak to one of their planners and then maybe landgate.

Thanks @theperthurbanist. I'll assume the title is right until I get further clarification and thus a further subdivision into 3 won't be possible.

That was going to be my next step. I was trying to determine what the options are first so that I know what scenarios to crunch numbers for.

 

your picture shows two different titles - has it been subdivided already?

 

I think the only way to be sure would be to have a survey completed on the land. Apart from that I would trust the title more than intramaps I think

 

Yes, it's already subdivided with a strata plan title. I was wondering if it could be subdivided again but into 3 lots. However if the title is most likely correct then the land is not large enough even with the 5% variation.

 

Yes but why would you even want to? Does it result in an equity gain? It obviously would mean a rental yield drop.

I think you should be doing this the other way around. Crunch the numbers for what is profitable, and then investigate further on how to get it done.

 

Interesting approach and I see how your approach could be better in identifying a profitable option which may not look possible but could be with some creativity. My approach was find out what options is actually possible, then crunch numbers of those options to identify the most profitable option. As an extreme example, a large multi unit complex is not feasible due to zoning so there is no point to crunch numbers for this option. However, as I mentioned the benefit of your approach is that an option may seem unfeasible, but if attractive I could dig deeper to see how it can be made feasible.

I'm not sure if subdividing into 3 would be a good idea and that's where I agree with you crunching some numbers will lead to the answer. My thinking on why it may be a good idea was it could lead to equity gain similar to subdividing into 2 lots, or if held potentially increase rental yield with another rented dwelling. So far I'd say the large backyard has not been providing much value to tenants and they would be just as happy with a smaller backyard.

 

Questions I have:

1. Which land area is more accurate, the 871sqm from the property title or the 885sqm from intramaps? Me: generally it's property title.
2. If 885sqm from intramaps, is it realistic to further subdivide and place 3 dwellings? From the R-codes min area is 300sqm but there is a 5% variation. I would need the full 5% variation to comply. Me: For R30 it's average area is 300sqm and minimum area is 260sqm. You can only use the 5% variation on ONE block so you would need 300 + 300 + 285 = 885 which I suspect you don't have as the title should be more accurate.
3. Is it an outrageous idea to rebuild two new dwellings with two granny flats to achieve dual occupancy? As commented in another post, it could be hard to sell so this may be an option only if intention is to hold Me: I don't think this would be possible as you need 2 x 450sqm blocks to do this unless council are agreeable to reduce that
4. Would it be a good idea to approach the owner at the back of my property to try to buy it? It is half a duplex with the other half has been demolished and new build. Land area is 422sqm. Will this allow 4 dwellings to be built? Me: it would create an awkward shape that I don't think improves outcomes
5. Has the cost to build dropped given the depressed Perth economy hence a good idea to build within the next couple of years? Me: only if the sums said so
6. From this thread, a project manager was suggested. Is there a usual order of getting help in development project?

Go open a spreadsheet in Excel and run all the costs down the first column and all the different scenarios across the columns. List as many scenarios and what is needed - for example to change from 2 to 3 titles you need amalgamate the 2 titles into 1 then split into 3

Possibilities that I can see
1. leave as is
2. renovate but leave size as is
3. renovate and extend up to create 3 x 2
4. renovate and extend into backyard to create 3 x 2
5. change title to green title and add a granny flat to the 455sqm block
6. demolish and build new single storey 4 x 2 duplex
7. demolish and build new double storey 4 x 2 duplex
8. demolish and build on 455sqm block double storey 3 x 2 + GF 2 x 2 and a single storey 3 x 2 on the other block

and so on and so on

It can be hard to estimate costs but look at rent, end values and you can probably use these construction costs $175k for a granny flat, $225k for a single storey 3 x 2, $250k for a single storey 4 x 2 and $250k for a cheap double storey 3 x 2.

 

Thanks heaps for the tips and direction @Westminster.

 

You should just pay @Westminster to crunch some feasibilities for you imo, if she's open to that.

Only other thing I'll add is that duplex pairs can be great for building a pair of GFs behind the existing dwellings - and even below 450sqm isn't necessarily a deal breaker.

I should know, since its exactly what I did, on 399sqm and 400sqm lots respectively. Council assessed it against open space, which I had plenty of since the existing 60s duplexes had a tiny footprint.

You still need to be careful with numbers though, since the rental yields are pretty bad in Perth atm.