Hi all We have an older property on a 908m2 block five minutes from Burnie. Currently positively geared but needs major renovations (new roof etc) in the next few years ... Thinking to knock down in the next couple of years and build two x 3 bedroom units. Just wondering pros and cons of subdividing vs multiple dwelling in terms of costs etc. obviously rental return could be the same if multiple dwelling but resale higher if subdivided (we would possibly sell one?!) and is it possible to subdivide down the track or is this more costly? I'm fairly sure this varies council to council but anyone have experience with it in general? Very new to this ! Thanks Anna
Hi Anna I would start off with establishing the building costs, what would be suitable for this particular area and end values of this product. This will give you an idea in the first instance whether its worth proceeding with 2 new units. Subdividing while retaining the original house is an option that I usually don't consider as it can significantly impact on the value of the front property and limit your market, unless it is an area where land is tightly held. Many buyers get put off the old at the front and can make the new product at rear less desirable. The original home at front would need to be renovated to a high/reasonable stand to make it appealing. How long is a piece of string, comes back to numbers, the area, this is where research and local knowledge is required. Homework, homework, homework. Once you have this then you can work out which option is best way to go. MTR
