For a long time now, many investors have been making money by subdividing residential investment properties under the old R-codes. With recent changes to the R-codes late last year, you may be sitting on a gold mine.
R-Code Changes On 2 August 2013, the WA R-Code changes officially came into effect. The changes will not only allow developers to build houses on smaller lots, but will also allow many home owners to subdivide blocks that were previously ineligible for subdivision.
Minimum Lot Sizes are Smaller Developers are facing pressure to provide houses on smaller lots that require less maintenance. The minimum lot size for a house that is on an R20 lot has been reduced from 500sqm to 450sqm, R25-40 and R60 have also undergone decreases in lot size.
Ancillary Accommodation aka Granny Flat
Previously, any ancillary dwelling on a property was only allowed to be occupied by family members, hence where the name “Granny Flat” came from. Under the new changes, "Granny Flats" can now be rented to anyone! As an added bonus, the allowable floor space has been increased to 70sqm, providing this does not exceed the allowed plot ratio.
How Small??? Under the new R-Codes, green title lots can be submitted for as small as 260sqm for development approval of a single house.
GOLD GOLD GOLD!!! The GOLD you have been looking for may now be right under your feet. Contact the Council Town Planning Department to see what R-code relates to your property, then ask for an information sheet to see how far you could "chop" your block down.
Saying all this, you have to always keep in mind the big picture and ask yourself some questions:
1) If you plan on living on the same block you are sub-dividing, do you want neighbours close by?
2) Check all services available to your block ie, power, water, deep sewerage etc as these will all need to be easily available for your subdivision if not there could be extra costs.
3) Is sub-dividing the "best thing" to do? As these large lots continue to get "chopped", they are also becoming harder to find. If you plan on living in the property for a long time your un-subdivided property may be worth a lot more into the future.
For more information visit: City of Greater Geraldton Town Planning
For the first time in 2014, Over and Out
Written by Dave Rawlingson and Janette Brennan
Janette and David are "Team Brennan" at Ray White Geraldton. Learn more here.