Property with one title but two units built in vic

hi

I am looking to buy a property which already has 2 units but only one title. to add to this

it has drainage easement through the driveway however it is double driveway so easement was

granted to be used as driveway. can you help me understand

1) if this is any good and can we sub divide title into 2 without much fuss and cost?
2) title has two overlays SBO special building overlay and SBO schedule, is this any bad at all?
3) cost involved in subdividing on paper cause in realty its already 2 properties with unit numbers assigned.

any help is much appreciated.

 

Sounds like your in Vic? If so, you can probably subdivide under the VicSmart provisions. VicSmart applications are supposed to be 2 week Council decisions not always the case but much shorter none the less. SBO probably is only relevant in that its a permit trigger. There sounds to be existing crossovers, driveways, parking spaces and buildings so its just a matter of adding some lines on paper.
Council application fee - $195
Planning consultant - $2,000 - 3,500
Surveyor - $1500 - $3500? - For lodgement of plan of subdivision with titles office after a permit is granted
Are they separately metered? Might be an additional cost there.
All in all a pretty simple venture

 

2 units on one title generally come with the expectation that they'll sub-divided sooner or later. The vendor probably has reasons for not doing this before they sell (too difficult, they don't have the funds, they're under time constraints, etc).

The questions you're asking should probably be raised with the local council.

* The drainage easement would be with the local water company (Yarra Valley Water, Melbourne Water, etc). Approach the relevant company for more information and how it pertains to subdivision of the property. There may be other constrains associated with this.

* Cost can vary a lot, there's a lot of things to consider. Some detailed research with the town planners help will give you some guidance.

* SBO means 'Special Building Overlay'. It's part of the local council's planning scheme. You'd have to ask them about the specifics.

 

Do you think it’s good to buy single dwelling on corner with big backyard or buy a single lot with 2 units already in place but no sub-division on title? Property is in Monash vic to be honest and price difference is 100k extra for two unit dwelling. Thanks

 

What is the likelihood of subdivision? What will it cost? How much value will 2 titles add if you sold them individually vs as one lot?

 

Speak to a licensed land surveyor first. The subdivision and dealing with the service authorities, easements etc are what the surveyor does. You may not need to speak to a planner and can save that fee.

 

I want to live in one and sell the other to reduce my loan down the track . As you know this area is over mil for any 60 old yr house

 

If you can easily subdivide it, that might be a very good deal.

You need to do some further investigation of a few things...

* Talk to the council about the subdivision process, the costs, the feasibility of it. Talk to the local water authority as well about the easement. Maybe ask some preliminary questions of a town planner.

* Do some research on similar properties. Monash isn't exactly increasing in value right now which is a risk. You need to know what these properties would be worth individually if you sold them shortly after the subdivision. If the combined sale cost, plus the cost of subdivision is greater than your purchase price, you'd theoretically make money. Keep in mind that you might also have to factor in the market dropping in value.

 

thanks peter for suggesting who to speak to for sub division. Yes market is not moving up in monash and most close to city suburbs like monash. however the market looks have dropped 15 to 20% and for the right lot there is always that extra demand in peak or trough moments, we are just in trough at the moment and i believe when the market comes back it will make these hot lots way too hot.

 

funny how we are usually the last consulted.

geez, Vic Surveyors are too cheap.

 

Yeh noone outside the industry really knows what surveyors actually do!

Our price for a no brainer title re-establishment and handling the subdivision for a two lotter of existing properties would be 4.5 -5k. Conveyancing and titles office costs add another 2k or so.

As @James Cavill said, doing under vicsmart will save a touch over 1k, and is quicker.

@pvfv - Do you have a plan from the section 32? You can pm it to me if you'd like.

The easements shouldnt be an issue, as you arent building they wont have an affect. They will just continue on the new subdivision plan.

Have a chat with Council to see there view on the subdivision, but know that if it is two fully self contained/serviced/seperately addressed buildings then it shouldn't really be any problems with the subdivision (famous last words).

Just for your knowledge, drainage easements created on plans prior to 1988 were in favour of 'lots on a plan', rather then specifically in favour of an authority. Drainage infrastructure is general owned by council or melbourne water. Melb water own the 'main' drains (the large diameter drains), while council own the smaller network drains, ie the smaller diameter drainage network in all the streets and in backyards. The council drains then feed into the melb water network and get taken out of the council area, ie to the bay etc.

If your plan was created in the 1960's, then it is likely the easement just states its purpose as 'drainage', but doesnt give an indication of who owns the assets within the easement. If there are assets within the easement (note in the earlier sub plans easements for drainage and sewerage were created as a matter of course, without always having assets installed within them) then they are likely owned by council. So if you are worried about it, then you could talk to them. But as stated earlier, if you arent building then there will be no effect on the drainage easement.