Browse Forums Building A New House 1 Jan 03, 2008 11:03 am We purchased a property in Wantirna (Vic) with a 3 bed and 1 bath home about 2 1/2 years ago. We bought it at what we thought was a good price. I it currently tenanted and we were at least fortunate to be blessed with great tenants who look after the place. Because of some dry weather in the recent years, there has been some structural cracks appearing on the brick work. The veneer was reported to be fine, but something has to be done about the bricks in the long run.
The land size of the property is about 997 sq m and we were thinking of subdividing the land to build two new homes. We will be moving into one of the homes while we sell the other one to try to reduce our cost. This is an option we have or the other alternative would be to sell the home with plans of subdivision. From what we were told, something would have to be done about the home in the long run and the cost of rectifying the problem would be great amounting to more than $20,000. That was why we considered building two new homes. We have spoken to a draftsman who works in the area and he quoted us about $15,000 to get all the plans and permits including all associated cost. He also told us it was possible to build something decent for about $9,000 per Sq, which would make it presentable for sale. We were thinking of building about 15 to 20 sq homes depending on if we could build double storey houses in the area. We were warned that 2 x double storey would probably not get through the city council, but a double storey and the other single storey would be alright. I have not spoken to another draftsman as yet, but am beginning to focus more of my efforts to this idea because its becoming increasingly urgent. Just a few questions we have............ Is there a company that anyone would recommend we investigate to help us with this sub division? I read many threads on this forum when I did a search on subdivision and were mostly quite informative. However, if there is any more advice people are willing to share, it would be greatly appreciated. Has anyone done been involved in subdivision in Wantirna (Vic) before? Is $9,000 per Sq a realistic price for a completed home that would be presentable for sale? Are 15 to 20 sq homes too big? How does one determine the market for sizes of homes? Ideally, we would not want to spend more than $400k for the entire project. Thanks, Jon Re: Structural cracks and thinking of knocking down to subdivide 2Jan 03, 2008 6:55 pm Before you run out and get plans drawn up talk to your local council. Find out what the zoning of your property is and if that zone allows you to subdivide. That way you don't pay for useless plans without knowing if you can or can't do it. Re: Structural cracks and thinking of knocking down to subdivide 3Jan 03, 2008 8:16 pm The step you are about to take could be a very profitable one given the current state of the rental market. That said, I would do a hell of a lot of homework with regard to what is really involved in hidden costs, market fluctuations and debt servicing, especially given your budget.
There are heaps of hidden costs; gas, sewer, water and electricity connections to the rear properties can be very expensive due to excavation costs depending on the distance. You will also need to re-title the block, and I would also see what government fees you will be up for in this exercise. There will be more fees than just plans and permits. A good conveyancer should be able to give you estimates on costs associated. I would look at what else is in the rental market in the immediate area, to get a guage on what the rental income could be. No point in building a $500k home if you cannot get anyone to rent it at $400 pw. Go and get rental lists from some local agents, and see what is on the market, and for how much. Look at the features as well, and work out what you can offer the market? What would you eant if you were looking for a rental, and how much per week would you spend? Adrian B Re: Structural cracks and thinking of knocking down to subdivide 4Jan 03, 2008 9:15 pm We have an old house on large (just over 1000m2) block in country SA, in which we have lived for the past 21 years. I realise land values are nowhere near that of Victoria but anyway we are on a corner and looked into subdividing our block, the estimated cost of subdividing, rediverting sewage, fencing etc was going to come to almost 20,000. Not sure if this varies from state to state. Getting a conveyancer to measure up and draw preliminary plans cost $330, we now have a buyer who is willing to pay all subdivision costs (obviously that is factored into the price he is paying) and he will buy back block which will be 349m2 and then develop it.
The front block, on which the old house stands, will be 655m2 and we will sell that separately at a later stage, ie when our new house is finished and we are ready to move into it. Unlike your situation, the old house has had many renovations/ extensions (we've spent the last 20 years doing them!) so should be a good seller in its own right. You need to make tenatative enquiries from your council, a conveyancer, real estate agents etc - all of which can be done without any cost outlay, before deciding on the best course of action. Re: Structural cracks and thinking of knocking down to subdivide 5Jan 03, 2008 10:22 pm Thanks for all the feedback. It sounds like the thing I should be focusing on at the moment is some in depth investigative work. The cost quoted to me for the subdivision was only the cost associated with getting the plans drawn up and the separated land titles. I have not factored in things like sewage, electrical connections and other utility connections.
We have already done some preliminary investigation and subdivision is definately permitted in the area and most of the corner lots have already been subdivided. One of our objectives is of course to make some money in the process but only in the long run. Our main objective is to move into a new home in that area for a few years (2 to three years) and if we can sell the rear unit, we would have paid of a fair sum of money on our new home. Thats the plan, but it does seem rather risky. Jon Re: Structural cracks and thinking of knocking down to subdivide 6Jan 03, 2008 10:43 pm I absolutely hate the trend to subdiving.
I've seen many awful subdivisions when I was in Brisbane. The worst was where a huge Mcmansion was then built, a family moved in, and three small kids played like caged animals in a tiny wooden terrace area between the gas pole heater (in Brisbane?); massive BBQ, and spawling outdoor furniture set. No garden, no play area, but a massive pile of bricks and loads of consumerist crap. The twit father even had a motorbike which he never rode, but always started up and revved in the garage for his guests. Once someone subdivides then the chance for a house & garden is lost forever. It'd be damned hard for anyone to afford to buy an adjacent block and knock down a house to regain some space. I know people are fond of quoting the old "we haven't time to garden because of our busy lifestyle" - which is straight out of some consumerist ad campaign. And if councils and state governments want to keep packing people in to areas with established infrastructure then I wish they'd just be honest about it and build purpose-built medium density terraces or something rather than allow these awful block subdivisions. Nothing personal to the OP, but I really can't stand this stuff. Re: Structural cracks and thinking of knocking down to subdivide 7Jan 04, 2008 8:46 am Well, Cabinfever, in our case the original house will still be on a 655m2 block and will still have a reasonable size garden, in fact larger than that of many 'original' blocks in city areas. Not sure what the developer intends to do with the smaller back block.
Not all persons wanting smaller blocks are the too-busy-lifestyle sorts, round here it is often older people who want a small house on a separate title rather than a strata unit. Also we only get 7 inches of rainfall a year and are on tight water restrictions (not sure if Qld affected by these) so that does make large gardens difficult, we are not allowed sprinklers for lawns anymore. Our house was built on a large block nearly 50 years ago, I guess times have changed since then. Agree with you it can be over-done though but then so can new land releases where large developer wants maximum profit and squeezes as many blocks into area as possible. BTW, silkishuge, is Wantirna part of Melbourne or in country Victoria? Please excuse my ignorance. Re: Structural cracks and thinking of knocking down to subdivide 8Jan 04, 2008 8:55 am Helyn BTW, silkishuge, is Wantirna part of Melbourne or in country Victoria? Please excuse my ignorance. Its an easten suburb of melbourne! (Was living in Wantirna South till last november ) There is LOTS of this happening in the area!! Built Porter Davis "Dromana" 2007. Re: Structural cracks and thinking of knocking down to subdivide 9Jan 05, 2008 8:21 pm Helyn Well, Cabinfever, in our case the original house will still be on a 655m2 block and will still have a reasonable size garden, in fact larger than that of many 'original' blocks in city areas. Not sure what the developer intends to do with the smaller back block. Not all persons wanting smaller blocks are the too-busy-lifestyle sorts, round here it is often older people who want a small house on a separate title rather than a strata unit. Also we only get 7 inches of rainfall a year and are on tight water restrictions (not sure if Qld affected by these) so that does make large gardens difficult, we are not allowed sprinklers for lawns anymore. Our house was built on a large block nearly 50 years ago, I guess times have changed since then. Agree with you it can be over-done though but then so can new land releases where large developer wants maximum profit and squeezes as many blocks into area as possible. BTW, silkishuge, is Wantirna part of Melbourne or in country Victoria? Please excuse my ignorance. Wantirna is in the outer eastern suburbs of Melbourne. It is roughly about 25km from the CBD and a new freeway will be going through the area within this year. Cabinfever, I come from a country where there isn't much land. My parents live in a 3 storey house on a piece of land that measures about 450 sq m. The property is valued at about AU$10 million so it is no surprise that most people live in apartments. I did not have much of a garden when I was a kid and it did not ruin my childhood in anyway, and I don't think it ruined the other 400,000 or so other children in the country as well. For us, it is also an issue of cost. It more cost effective for us to subdivide the land and sell what we do not need. vanderlay, I think I recall an apartment block being built near Knox as well, which is indeed a sign of changing times. The property prices are just going through the roof. We live in a small unit at the moment, and we were offered about 30% more than what we paid for this place just under 2 years ago. We like the area where we live, but the home is getting a little to small. Jon Re: Structural cracks and thinking of knocking down to subdivide 10Jan 06, 2008 11:40 am silkishuge
Grab the last 5 copies of Autralian Property Investor. They have had a 5 part series on small developments. And also be carefull with termites in your area which will increase your building costs a bit. http://www.archicentre.com.au/media/2006SEPT22RCTermites.htm http://www.knox.vic.gov.au/Page/Page.asp?Page_Id=356&h=1 Steve Re: Structural cracks and thinking of knocking down to subdivide 11Jan 07, 2008 11:01 am Yak_Chat silkishuge Grab the last 5 copies of Autralian Property Investor. They have had a 5 part series on small developments. And also be carefull with termites in your area which will increase your building costs a bit. http://www.archicentre.com.au/media/2006SEPT22RCTermites.htm http://www.knox.vic.gov.au/Page/Page.asp?Page_Id=356&h=1 Steve Hi Steve, thanks for the information. I was not informed about the termite infestation. Is there a way to estimate how much more one would have to spend on "termite proof" construction? A percentage of the building cost for example. Where would I be able to obtain the last 5 copies of Australian Property Investor? Is it an online magazine or something we can purchase from the newsagent? Thanks, Jon Re: Structural cracks and thinking of knocking down to subdivide 12Jan 07, 2008 6:16 pm It's a news agent magazine. current copy has article 5 in it.
re the extra costs - ring archicentre and ask them what extra costs is that type of protection worth. Steve isn't a garage level with the rest of the house a given? pretty sure they 'came around' long time ago. if you have a flat block, the garage is usually level with the rest… 1 17525 The spacing of the studs looks pretty large especially for a load bearing wall. 3 11116 It sounds like you have a crack in your garage where the wall meets the ceiling, along the shadow line on the… 0 17197 |