Relaxing sub-division laws

Posted on: 20.08.2016

 Population growth and it’s influence on relaxing sub-division laws

According to an article from Terry Ryder (Money Magazine). Between the year 2000 and 2014, 60% of Australia’s population growth came from migrants. This alone has prompted council’s across most states and territories to revise their infrastructure and town planning. A common theme across the states, is the intent to contain new growth and expansion within the existing blueprints of the major cities.

Some good sub-division examples of relaxing laws are from the 2014 Brisbane City Plan:

• In certain areas, a property of 800 square meters can be split into two titles (with minimum even street frontage of 10 meters each).
• In certain areas, a property of 600 square meters can split in two (with a minimum street frontage of 7.5 meters each).

Information on granny-flats in different states and city’s

NSW – Block must be 450 square. The granny-flat can’t take up more than 60% of the property. They’re typically 60sqm but verandah’s etc. can be added.

WA – Ancillary dwellings can be used for private tenants, carers or unrelated students and seniors. Maximum floor area is generally 70sqm but can differ across council areas.

NT – The floor area cannot exceed 50sqm (urban) or 80sqm (rural)

ACT – Granny-flats maximum floor area recently increased from 75sqm to 90sqm, and the occupants no longer have to be related to the owner’s of the main dwelling on the title.

Brisbane City – Council approval is needed for Granny-flats larger than 80sqm or if it’s rented to someone unrelated to your household. If it’s for a household relation it doesn’t require approval permitted it’s smaller than 80sqm.

Ipswich City – A Similar scheme to Brisbane, it has “dual occupancy – auxiliary unit” and does not require the occupant of the granny-flat to be a related family member.

Logan City – Logan differentiates between a “secondary dwelling” which must be occupied by a relative and a “auxiliary dwelling” which can be rented out. (maximum floor size of 70sqm).

VIC – At present granny-flats can only be occupied by a family member and if the occupant dies or moves out, the flat must be removed. However, the government announced in January that it’s reviewing planning which includes granny-flats.

Summary

Relaxing sub-division laws should create good opportunities for home owners and investors. Particularly in Albion, Newstead North, Taringa, Coorparoo, Ferny Grove, Upper Kedron and Hemmant-Lytton.

In the same breath, investment lending has never been as strict as it is right now and it’s important to have someone experienced help you navigate the loan products and secure a deal that saves you money, not the banks. If you’d like to speak with an experienced Uprosper broker, please request we contact you, for a quick chat surrounding your goals.

All the best,

The Uprosper Team

Our source of information for this blog – Money Magazine, issue 191, July 2016