Stormwater – Kerb Discharge

If you are going to build on an existing house block you will probably have a planning permit condition that storm water must discharge to an approved point.

If there is no surface water system one option can be to discharge to the street.

This is normally by constructing a proper kerb outlet like the photo below:



But not like this dodgy installation on the right!

Or even discharging over people walking along the path like the one illustrated in this post: Overflow Fail

A kerb connection can be at a reasonable cost as long as the house is above the road.

If the house is below the road you will need either:

or

  • A pump and storage for the storm water, which can add significantly to the build cost.

 

For more information on issues like this see Guide to Buying a Block

 

Virtual Build?

I recently saw an advert for ‘MyPlace’ a ‘Virtual Build Information System’ by Burbank.

What Is A Virtual Build Information System?

MyPlace is a virtual construction site which provides a visual aid in the progress of your home’s construction. It lets you check out what’s happening on-site of your new home without having to leave your couch.

If you build your new home with Burbank home  you will be able to log into ‘MyPlace’ at any time. You will then be able to:

  • Download documents.
  • See photos of your home being built.
  • See updates from the Builder.

Is it A Good Idea

Well it sound ‘Modern’ and ‘High Tech’ but I’m not convinced.

  • I always like to be able to have signed document in my hand, not electronic documents!
  • Is it just a system to try and keep you away from the site, and stop you asking awkward quality questions?
  • How much detail will the photos really show to help you gauge the build quality?

  • Many people building have problems in getting a weekly phone update from the Site Supervisor, so how frequently and up to date will the information be?

I might be interested if I was having a house built a long way from where I lived, but in my mind nothing replaces regular site visits during the build.

If you have used one of these Virtual Build Information System I would like to hear about your experiences.

See: Relations With The Builder for similar posts.

 

Ghost House 2

Here is another Ghost House where nothing seems to have moved for a long time.

As you can see it was going to be a big house.

After being exposed to the elements for years it’s probably only fit for demolition.

I have heard people say you should aim for the biggest you can afford . . . . That’s fine as long as things go well . . . . . . . . Hit a problem and this can be the result.

Choosing a New House‘ explains building costs to help you avoid finishing up with a ‘Ghost House’  like this.

6 Reasons To Have A Pool

I recently posted on 6 Reasons Why I Won’t Have a Pool and got some comments back. . . . . . so here are some Alternative Views.

  1. Heat Relief – Dive in to cool off on a sweltering day. One suggestion I received was have a TV installed so you can watch it from the pool.
  2. Keeping Children Occupied  – Playing in the pool can keep children occupied for hours, and gets them away from the computer games.
  3. Relaxing –  The  resort effect can put you in a holiday mood.
  4. Exercise –  Even if the pool is not big enough to swim lengths there are  resistance exercises such as  Water Aerobics.
  5. Parties – Great location for family pool party.
  6. Emergencies – The pool water can be used to fight a bush fires. Pool water should only be used as a last resort as it can contaminate tank water, kill plants, and cause corrosion on unprotected steel.

I’m still not convinced, but if you think you might want a pool it should be considered before you buy a block and plan your home.

Building for Investment

“What make a new house a better rental property?” . . . . A quick answers is probably along the lines of  “Would I be happy living in it.”

Do you want capital growth or regular rent income is something you need to also consider.

Here are a few things to think about when considering building a new house for investment:

Inner Or Outer Suburb?

Inner suburbs will be more expensive so units, or town houses will probably the way to go. With few new houses capital growth should be reasonable.

Outer suburbs and you are probably looking at 3/4 bedroom houses. The problem I’ve found with new developments  is capital growth can be slow until well after the last house is built.

What’s the Local Market?

Spend some time talking with local agents about occupancy rates for various house sizes and properties in demand. No use building a 300m double storey house surrounded by single storey 150m2 houses.

Area Demographics

Spend a little time walking round the suburb. Is it singles, young families or empty nesters? Are there lots of professionals or is it a more ‘Blue collar’ area?  

Aim for the middle of the demographic to capture the most tenant demand. Not just with the house, but the standard of fit out.

Aspects Of Location Attractive to Tenants

Proximity to workplaces, transport links and amenities such as schools, restaurants, parks and shops are all aspect that are valued.

Easy Maintenance

As a frequent renter, and landlord over the years I can tell you that property maintenance has never been as high on my agenda as when I have been an owner occupier. Make sure  front and back yards are low maintenance.

 

How Adverse Possession Can Affect Buying A Block

Did  you know its still possible to take over ownership of someone else’s private land?

This makes it important to check the Land Title Plan dimensions against the actual site dimensions of your new house block for the following reasons:

  • If the actual dimensions are bigger it doesn’t mean the seller owns the ‘extra’ land unless they can demonstrate adverse possession.
  • If the land is smaller a neighbour may have ‘acquired’  ownership by adverse possession.

Either way you could be in for a considerable amount of legal costs to get the ownership of the land sorted out.

Adverse Possession

Adverse Possession is when someone becomes the owner of land through continued exclusive use of that land.

Limitation Period

Before land can be obtained by adverse possession there has to be continued use use of the land for an extended period. That period is different for the various states as follows:

  • Victoria, 15 years
  • South Australia, 15 years
  • New South Wales, 12 years
  • Western Australia, 12 years
  • Tasmania, 12 years
  • Queensland, 12 years

Crown (Government) Land

With the exception of New South Wales and Tasmania you cannot claim Crown Land. In those two states a longer (30 year) limitation period applies.

The reasons are that it is harder for a government to keep an eye on its lands, and it is assumed that the government hold possessions for the public good, despite any apparent neglect.

How Adverse Possession Claims Work

Adverse possession means not mere occupation but also actual physical possession in an open and peaceful manner, without consent of the original owner.

Any form of permission ( a licence, a lease, or an agreement to use the land), and the claim of adverse possession will fail because it will be clear that the owner gave consent for use with no intention to pass over ownership.

Proof to the Titles Office in your State that the land has been  occupied for the entire period of time is required.  

Evidence will be, that as a minimum, at least one of the following has occurred for the whole of the limitation period :

  • A secure fence has been in place without challenge ;
  • ‘Keep Out, Private Land’ signs have been erected without challenge;
  • Payment of rates and taxes.

The information in this post is of a general nature and you should not try to deal with adverse possession issues without involving a lawyer.

 

For more Information why not look at: anewhouse Guide to Buying a Block

 

 

 

Investment Property or New Home

Guest post by Callum Scott of Scott Finance

Are you building for yourself? . . . or will it be a rental property?

Over the last part of the 20th century home ownership has been around 70% but has now slipped to 67.5%.

Why has this happened and will this trend continue?

Is it an affordability issue?

Mortgage Choice’s ‘Future First Home Buyer Survey’ found that nearly 32% of renters polled said that they would continue renting longer to save for a deposit.

A study by the Australian Housing and Urban Research Institute (AHURI) found that over the last 20 years the number of ‘Long Term Renters’ (more than 10 years) renters has increased from 27% to 33.4%.

ABS, Housing Occupancy and Costs 2011-12 shows that on average,  tenants spend 20% of their gross income on housing. After income tax and living expenses, this does not leave a lot to put towards a housing deposit.

Although house building prices seem to be competitive will land prices continue to rise?

Unless salaries keep up,  it all becomes tougher.

Perhaps with mortgage interest rates at a historic low and with lenders fiercely competitive in the deals they are currently offering. This may be the time to make a move to build a new investment property? . . . . . Just make sure you have done the calculations so you can deal with future rate rises!


For no cost advice about new house finance contact: Scott Finance

 

Floor Space Ratio, or Plot Ratio

When you are buying a new house block it’s important you understand how much of the block you can build on!

One way in which NSW councils prevent Over development is by prescribing a ‘Floor Space Ration’ (FSR). The same principle applies in WA but is called ‘Plot Ratio’.

The FSR of buildings on a site is the ratio of  ‘Gross Floor Area’ to Total Site Area.

Gross Floor Area is defined as – The sum of the internal floor area of each floor of a building  measured at a height of 1.4 m above the floor.

It includes  habitable rooms in a basement or an attic.

It excludes:

  • Stairs
  • Voids above a floor in 2 storey properties.
  • Non habitable storage including basement areas
  • Vehicular access and car parking
  • Terraces / Balconies with outer walls less than 1.4 metres high, and

To calculate, you multiply the site area by the FSR ratio.

For example

For a 800sqm site and a FSR of 0.5:1

Maximum Floor Space = 800 x 0.5 =  400sqm.

See Restrictions for  more posts  about what you can do on your land

 

 

Habitable Rooms

What is a Habitable Room?

You see the phase in several planning and building documents with regard to things like Ceiling Height (see Room Height) and  Overlooking.

Well according to the Building Code of Australia (BCA)

A Habitable Room is ” A room used for normal domestic activities”

Habitable Rooms Include: 

  • Living / Lounge / Family rooms
  • Bedrooms
  • Television Room/Home Theater
  • Kitchen
  • Dining Room
  • Sewing Room/Study
  • Music Room
  • Playroom/Family Room
  • Sunroom

Habitable Room Normally Excludes:

  • Bathrooms / Ensuites / Toilets
  • Laundry/Clothes Drying Room
  • Pantry
  • Walk-in Wardrobe
  • Corridor/Hallway/Lobby
  • and “Other spaces of a specialised nature occupied neither frequently nor for extended periods.”

 

Also see  Overlooking

Bridging Finance Basics

Guest post by Callum Scott of Scott Finance

Buying Your Next Home

. . . .  but haven’t sold your current house?

You can put your home on the market, sell it, settle and then rent while waiting for your new home to be built. For some people this can be a real hassle!

The Alternative

You can obtain bridging finance.

In simple terms, it means that your lender can increase the amount of your loan to cover the purchase of your next one before the sale, or settlement, on your current one. On settlement of your original, funds are then applied to reduce the total loan outstanding.

Of course, over this period you will be paying out a lot more in interest payments, but it is usually for a short period such as six months for an existing property, or one year where a new property is being built.

One possible disadvantage with this facility is that if your home takes longer than expected to sell, interest repayments will be larger than expected. Therefore it makes sense to build this possibility into your planning. You will also need sufficient equity in your existing home to qualify for this type of loan.

Some lenders will charge a higher rate for this facility whereas others will simply apply their standard variable rate.

 

Saving Costs During Bridging Period

Most lenders will offer an interest-only option with the loan reverting to principal and interest once the funds of the sale have been applied to the total loan amount.

Some lenders will capitalise interest payments during this period. This means you make no interest payments, with the interest amounts being added to the amount that you owe.

At completion you then recommence repayments which would be typically higher as the principal you now owe is larger.

 

For no cost advice about new house finance contact: Scott Finance

 

 

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