Hi, We are waiting for a VCAT hearing regarding plans for our 4 unit development, date still to be confirmed and then it apparently takes a few months after that for a decision. At the moment our site has a vacant house on it which is derelict and not rentable. We have put up temporary fencing to try to keep weekend revelers out and lovely neighbors from dumping their trash and furniture on our site. My question is are their any cons to demolishing the property now. Are there increased holding costs like council rates, pure land holding taxes etc? Property is in outer eastern suburbs of Victoria. If we demolish now, it will also give the ground time to settle which I believe helps with building. This will at least get rid of the need to keep cutting back the garden, the risk of someone partying inside the house (seems to still be happening), them potentially hurting themself and suing me etc, the police and fire department call outs which I think happen periodically (neighbors tell me and I see the burnt our bottles in the garage). They also do knock down the doors etc to gain entry. I have given up boarding them up now. Thanks.
I'd demolish now. Your council rates will go down generally if you tell them its vacant land and return your bins so not paying for bin collection. You'll still need to maintain the block. Here in Perth I had to maintain a firebreak around the perimeter of a 249sqm inner city lot I had a squatter situation similar and the Council told me it was inches away from taking legal action due to the squatters getting access even though time and time again I put the boards back up. Talk to your accountant to ensure it won't adversely affect you for anything else. Besides that demolition may take up to 6 weeks from now. Getting permits, baiting for rats, disconnection of services then the actual demolition
It's an accounting/CGT etc question mainly. Sounds like the value of the land won't change, with, or without the existing building, but check that first. From a practical perspective, get it underway now Abolition of services (gas, power) will take quite a few weeks, quotes and lining up a demo contraction - 6 week lead time is realistic. Having done that the site will be cleared and ready for the next stage, and the headache of constantly looking after a messy will be gone. Go for it
Thanks @Westminster and @Tufan Chakir. The services have already been abolished so it sounds like we may as well demolish. We just hope VCAT come through with the goods. It does have a nice lemon tree that costs about $100 a lemon...that is about all I am getting from the property at this stage. I was also wondering how demolishing would impact our VCAT hearing when it comes up. We have already had an arborist report and we don't need to keep any trees.
Make sure you have taken photos of the house and it's condition before demolition. The person doing your appeal should make comment about the condition and why it was demolished, in a semi-casual way, not trying to persuade the Tribunal that it needed to be done (don't over argue), just an explanation of the need to demolish. Done correctly the Tribunal won't think you are being cheeky or pre-empting a decision, just acting out of practical necessity. You will be better to mention it, rather than avoid it, but as I say, don't over play it. The Tribunal is not stupid - they will work it out
Demo can also add value to the land if there is a scarcity of vacant sites in the area. Does demolition require consent? Is this separate from the DA?
