Will this extension to my property be considered a secondary dwelling?

Discussion in 'Granny Flats' started by Melburnian007, 14th Dec, 2021.

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  1. Melburnian007

    Melburnian007 Well-Known Member

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    I have an IP in an inner eastern suburb on a 480 m2 corner block. There is a lot of vacant space (setback is 7.5m) at the side of the house.

    We would like to improve the rental yield through an extension (40m2) that includes a bedroom+ensuite and an open plan kitchen and living room. Whilst the extension will share a wall with the existing dwelling and also utilities, it will also have its own entrance at the front.

    I've attached some drawings and plans of what I have in mind.

    Floor Plan/Drawings - Proposed Extension


    Before I speak to Council and discuss whether this is doable or not, I thought I'll first seek advice/suggestions from the experts here.

    Any thoughts? Thanks :)
     
    Last edited: 14th Dec, 2021
  2. Marg4000

    Marg4000 Well-Known Member

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    Probably come under granny flat rules.
     
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  3. Melburnian007

    Melburnian007 Well-Known Member

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    Thanks Marg, probably not a granny flat since the main dwelling is an IP (?)
     
  4. Joynz

    Joynz Well-Known Member

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    Are you hoping to build in the setback? That might be an issue.

    After the reno, how many kitchens will there be? If there will be two kitchens, it would seem to be a secondary dwelling in my (non-expert) opinion.

    There may also be requirements about private open space and parking if it’s in Victoria.
     
    Last edited: 14th Dec, 2021
  5. Melburnian007

    Melburnian007 Well-Known Member

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    Side setback requirement for a corner block is 2m.

    Yes, 2 kitchens

    Both of these comply with the Boroondara siting requirements.
     
  6. Joynz

    Joynz Well-Known Member

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    Why two kitchens?
     
  7. Melburnian007

    Melburnian007 Well-Known Member

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    I want the extension/2nd dwelling to be a self-contained unit.
     
  8. ThaRealJaySnell

    ThaRealJaySnell Well-Known Member

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    The first thing to know is that Victoria has some of the country’s toughest regulations around self contained unit/granny flat. Every council is slightly different, so you should contact yours, but they generally have two similar caveats:

    • they can only be inhabited by dependents (people who depend on you, the main house occupier, in some way)
    • they must be removed once that person stops living in it.

    A planning permit is always needed to build a second dwelling on your land. A second dwelling will require car parking and a backyard area to be provided. If you are looking for some more space, but don’t want the complexity of a second dwelling then you might want to consider if a studio would be better for you.
     
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  9. Melburnian007

    Melburnian007 Well-Known Member

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    Thanks Snell, yes, I plan to speak to the Council in Jan.

    I will not include the kitchen now and if at all we need to use it as a DPU or the rules regarding secondary dwellings change, whichever is earlier then at that time we will just put in the second kitchen. I am getting an architect to draw up the plans for us.
     
  10. The Y-man

    The Y-man Moderator Staff Member

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    Also remember from a tenancy perspective, if you don't have separate meters, the landlord must pay for gas/water/power.

    The Y-man
     
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  11. Travelbug

    Travelbug Well-Known Member

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    We had a 6 bedroom house that we split. Put up a firewall. It was still classed as a granny flat by council and we had to pay the $9,000 fee. Bit annoying as it is a fee for impact on the environment and there was none seeing we didn't add any extra rooms.
    Check your insurance too. Most wanted to charge for 2 separate dwellings, even though it was still the same house.
     
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  12. Melburnian007

    Melburnian007 Well-Known Member

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    Which is what I am doing now. I pay all the bills, divide by the number of tenants (I let out the rooms in my rental properties) and let them know what they have to pay each month.

    Thanks - will therefore probably just plan it as an extension first (depending on what the town planner tells me at the meeting). Edit: From a 3 bedroom house to 3 bedroom plus teenage retreat/4 bedroom property.
     
  13. qak

    qak Well-Known Member

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    THAT means you're charging the tenants for usage ...
     
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  14. Melburnian007

    Melburnian007 Well-Known Member

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    Yes, that is what I said/meant. I have 3 tenants sharing a 3 bedroom house, bills are divided by 3. With the extension, there will be 4 tenants so bills will get divided by 4. Anyway next stop is advice from Council.
     
  15. The Y-man

    The Y-man Moderator Staff Member

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    What @qak is getting at is that it's illegal to on-charge unmetered utilities on an ongoing basis - it needs to be built into the rent.

    Paying for utilities and services

    So your tenants can actually report you and you can be fined .....

    The Y-man
     
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  16. Melburnian007

    Melburnian007 Well-Known Member

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    Thanks. Utilities are not unmetered.

    In any case I will speak to my lawyer and make sure what we are doing is not illegal.
     
  17. Joynz

    Joynz Well-Known Member

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    Isn’t this for cases like a main house and a granny flat where there are two households but just one meter?

    In the case of the OP currently, it sounds like a share house- with one household with a shared kitchen and bathroom inhabited by 3 people - and one meter for water, gas etc.

    Or does having 3 tenants in the one house with three seperate leases make it 3 households currently?

    If it’s currently just one household, and the OP adds a self contained studio, then that would seem to create two households (with two kitchens and separate bathrooms for each household - but with only one water & gas meter etc.

    In this case, neither household may be able to be charged separately for water, gas etc.
     
  18. The Y-man

    The Y-man Moderator Staff Member

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    Sorry, I should have said it is illegal unless they are separately metered for each tenant, so what amount of power, water, and electricity each person is using can be determined individually.

    As per @Joynz splitting off a self-contained studio etc will also fall into this category unless you can install separate meters for that part of the house AFAIK.

    The Y-man
     
  19. Melburnian007

    Melburnian007 Well-Known Member

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    It is a shared house. I send them the bills (water usage, gas and power) which are split by 3. If I build a secondary dwelling then I will make sure I include utilities in the rent.
     
  20. The Y-man

    The Y-man Moderator Staff Member

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    Actually, I just reviewed the consumer site - this is interesting.
    Rooming accomo that I assumed above is actually not applicable below 4 tenants... so it comes down to "co-renting" (share house) from what I can understand.

    Co-renting (renting with other people)

    ...in which case the splitting of utilities is fine (normally the tenants pay and sort out splitting amongst themselves, because the utilities are in the tenants names)

    The Y-man