As population continues to increase, Aussies are regularly giving away the Great Australian Dream of a big backyard in favour
of subdividing. There’s lots of positives, like less lawn to mow - but for most people it can be a great way to make money. With
land now a scarce commodity, the value of your vacant backyard has risen considerably over the last 10-15 years. Building a second house can open you
up to new possibilities like earning rental income or selling one of the properties to fund your retirement.
If you’re lucky enough to be able to retain your existing house at the front and build at the back that is normally the the cheapest option. Building one house at the back
of another is known as “battle-axe”. If you’re driveway isn’t wide enough to accommodate this, you’ll need to knock over the existing house and start fresh.
In this case, you have the option of battle-axe or if you’re block is wide enough, it may suit better to do a duplex (side by side). But, there’s things to consider like
will you be allowed by council, what are the costs involved, is your block even big enough?
Let’s get into it! Here’s our top 5 things to check before getting started:
As part of your title package, you’ll be able to see if there are building envelope restrictions on your property. The building envelope will show the outline of
where you’re able to build, including the setbacks required to the boundaries, the maximum height allowed and if there’s a height restriction. At the discretion
of your local council’s Town Planning department, there may be an allowance to build outside or vary from the building envelope.
Within your title package, you can also check for a covenant, it’ll be mentioned in the section on encumbrances, caveats and notices section. As long as it doesn’t mention
that only one dwelling can be built on the land, generally you’ll be okay.
The planning scheme may show that there are overlays or zoning that affects your property. The zones refer to the particular use that is assigned to your property,
for example commercial and residential. In some councils, the zone also describes how you can use the land. From here, you can get an idea on whether the land can be subdivided.
Overlays vary and you may have more than one overlay. Examples of overlays are flood, heritage, neighbourhood character or significant vegetation. We send the planning zones and overlays in the
property report you get with a property information order. The overlay information will indicate if a planning permit is required. If you’re still not sure if you need a planning
permit, you can order planning advice through PSI.
Sounds a bit obvious but of course the land size is going to affect whether or not you can subdivide. There’re quite a few space intensive provisions that need to be allowed for like the driveway will need to be
at least 3 meters wide. You’ll need to provide enough private open space and this can vary significantly from council to council.
Planning scheme requirements for private open space, side and rear setbacks and site coverage can get complicated. For example in Monash, there’s up to 5 precincts within the neighbourhood
residential zones that all have different requirements. In the Clayton activity centre, you’ll need at least 40m2 total with 35m2 at side or rear of building that can be accessed from a
habitable room such as a lounge room. Provision for at least 1 mature tree and you’re allowed 60% site coverage. Requirements are stricter in areas where there’s likely more of a residential feel.
Another space consideration is carparking and turning circle. You’ll need to provision for at least 2 car parks per dwelling and enough turning circle to get in and out.
Requirements vary by area, so speak to someone that’s familiar with the planning requirements in your area.
It is definitely worth speaking to a draftsperson and/or planning professional early on. You want to find someone that has experience in your local council and has a thorough understanding of planning requirements. They’ll be able to provide you with realistic expectations of what you can and can’t do and with their experience will pick up on things that you hadn’t thought of. For example, the orientation of your house might effect the amount of shadowing it creates. This might effect the design or the approval process.
There are quite a few costs associated with subdividing your block. Obviously, there’s the build costs, but along with that there’s land and building surveyor costs, property information costs, town planning application,
water and sewer fees, electricity, title registration and more. So you’re looking at around $30k before even starting construction. Some blocks may be more expensive to subdivide if they require retaining walls and more
complex engineering.
As you can see, there's a lot of things to think about! Remember you can easily start your journey by ordering your title and getting a free property report through our website.