Hi All, Looking at a place with a sewage access "manhole" in the nearly middle of the block with the pipe almost running directly through the middle of the block. The "manhole" is directly in the middle of the carport. The attached pictures should help visualize this (lot marked with black *). I'm not up to speed with development rules but I can't see a 405m2 block allowing multiple dwellings. At most I would remove the existing house and re-build in the very long distance future. If I do NOT have any development plans for this property is there anything I should be aware of? Any deal breakers? All I can think of is the deck footings may be too close to the manhole. My mate told me the clearance is 600mm, is it a case of calling Queensland Urban Utilities to confirm this? Cheers
For me, I'd probably pass on this if it is for an IP because one day you will want to sell it and someone who might want to put in a pool or renovate at the back might pass it by. You are asking the question, and so will the next buyer.
On the flip side you'll be able to achieve the same rent with or without sewer.... but selling may be harder and less than comparibles. So buy well and rent well. ... then sell slightly less
What if the plan is to never sell haha. All good points worth considering. I wonder if this would effect a valuer for future equity pulls...
The only downside would be every now and again when the line is blocked--The BCC maintenance teams will need access to that manhole .. Plumbing and drainage | Brisbane City Council
If you might want to demolish and rebuild, then your new dwelling will be affected, as the new dwelling would ideally take up most of the GFA. I can also envisage it being off-putting to potential tenants. It's probably easier to move on to something else.
@Leo2413 what is your reason to suggest passing? If a dwelling already exists on the block and I need to re-build in the future, surely I just need to re-build with a similar footprint and I'd be fine? Or is it not that simple?
As @Scott No Mates said above. To me its not worth it, unless your getting the block at a killer price or it has very unique aspects. If its just your run of the mill 405sqm then I'd pass. But i always keep risk front and center for every purchase. Sometimes abit overkill but its kept me out of disastrous trouble so far.
@Leo2413 @Scott No Mates any idea on the extra costs of new engineering design and calculations? Couple thousand? Or 10's to 100's of thousand? It is in a great suburb at a great price (with plenty of upside after a cosmetic reno) otherwise I would move on. So if I can budget in the potential downside into the purchase cost it may be worth considering. I also want to keep risk at the front of purchases. But at the same time I don't to run away from every small problem. Trying to quantify the risks before I pass
If you think its a great deal then maybe put in an offer with a DD clause allowing you some time to get an engineer/town planner on site and their input. I get development DD clauses for all my sites before I am willing to go unconditional. If you think you will be building your home on it one day then treat it as a development site and get in that DD clause for 10 days so you can be certain it wont be a dud later on.
Not that it is directly related but it is related to manholes and developments. This house (if you would call it that) sold in July 2016 for 620k - 111 Evenwood Street, Coopers Plains, Qld 4108 - Property Details This is the sewerage pipeline with the 'big dot' being the manhole. So you can clearly see there is 2 sewerage lines running directly under the back of the property - so you would think you cannot build at the back of the block (front would be okay STCA). Well it actually got approved for 3 sites 2x400m2 and 1x600m2 (roughly speaking) Sold listings 109 Evenwood Street, Coopers Plains, Qld 4108 - Property Details - sold 284k 107 & 111 Evenwood Street, Coopers Plains, Qld 4108 - Property Details sold 660k Total sale price was 944k from a 620k purchase however I doubt the developer made much money.
Bought June/July 2016 and only just sold. He was wanting to get over 1M combined for the completed site. Rough numbers mentioned purchase - 620k stamp duty - 23k demolishing - 10k subdivision cost - 200k 12 months interest - 853k ill use 5% - 42.6k REA fees - 944k @ 2% - 19k Marketing - 5k Total Approx 920k With sales price of 944k leaves profit of 24k before tax so roughly 15k after tax. So the numbers are tight on these very favourable numbers - I would assume commission would be higher than 2% I used at 3% he would lose another 10k roughly so like I said it would of been very very tight Another thing I haven't included is I know his interest rate is higher than the 5% I used as he told me his interest rate. Hope this is a lesson to everyone that it isn't always 'easy' to make money from developments
Maximum Deductions - Washington Brown Depreciation At Washington Brown, our average property depreciation report claims are over $9,500 in the first year. That’s $9,500 that you could be reducing your taxable income by. Our team can conduct a free assessment to find out how much you can save. » Get a Free Quote Now
