‘Mum-and-dad’ developers are reshaping Brisbane neighborhoods one drop at a time
This house at 17 Effingham St, Tarragindi, was a redevelopment project and recently sold for $4.1m.
A surge in redevelopment activity is reshaping Brisbane’s inner ring suburbs, with ‘mum and dad’ developers turning nursing homes into architectural showcases.
As vacant land becomes scarce near the CBD and families choose to live in areas full of schools, the suburbs of Wavell Heights, Mount Gravatt, Corinda, and Alderley, are seeing a new generation of homes go up to replace post-war buildings.
Industry players are seeing newbie property developers entering the Brisbane market – from commercial to medical professionals – and turning it into a lucrative venture.
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FRONT: The house at 33 Zeehan St, Wavell Heights, before it was demolished and replaced with a new one.
AFTER: This house at 33 Zeehan St, Wavell Heights, is set to be sold at auction on Saturday, March 14.
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A recent Local Advisory review of demolition redevelopment activity across Brisbane echoes the trend, identifying large blocks within 10km to 20km of the CBD in areas of established schools and proximity to major infrastructure that have attracted new build interest.
Rather than building massive “McMansions”, Place Ascot agent Drew Davies said these new homes are about quality construction and architectural detail, bringing a luxurious touch to previously modest streets.
“It’s less about quality and more about creativity,” he said. “We see many shop builders, who are supported by the family, entering development and supporting their activities.
“In many cases they are now competing directly with traditional developers who finance projects.”
FRONT: The house at 43 Clausen St, Mount Gravatt East, before it was demolished and replaced with a new one.
AFTER: This brand new house at 43 Clausen St, Mount Gravatt East, has undergone a complete rebuild and is now for sale.
RSM Australia’s national income tax and housing attorney, Adam Crowley, said he was being bombarded with inquiries from mum and dad developers taking on redevelopment projects.
“Everyone seems to be doing their main job and becoming a developer on the side,” Mr Crowley said. “This is not limited to tradies, we have doctors, surgeons, specialists.
“It’s strange because we usually do development work at the end of town, but we see moms and dads who own their homes in a big building asking; ‘Can we repair, tear down and rebuild, or split and do a duplex-like development.'”
FRONT: The original house at 30 Mittagong St, Enoggera, before it was demolished and replaced with a new one.
AFTER: This house at 30 Mittagong St, Enoggera, was a redevelopment project and recently sold for $3.295m.
Mr Crowley said he sees many people getting caught up in the tax issues of demolishing a house and building one or two more in the same area with the intention of selling it.
“Be careful when you build something new and then sell it,” he said. “Don’t think it’s not classed as a profit-making activity, don’t think you won’t pay GST on the transaction, and don’t think it’s exempt from CGT.
“Many times, they have built these duplexes, live in one but not the other, then sell them and find out that they don’t pay property taxes.
“With planning, you can manage these risks, but it’s hard to try to put a broken egg back together once it’s done.”
FRONT: The original house at 28 Kidwelly St, Carindale, before it was demolished and replaced with a new one.
AFTER: This house at 87 Galsworthy Street, Holland Park West, was the subject of a redevelopment and recently sold for $3.2m.
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Last year, GJ Gardner Homes also recorded an increase in rebuild enquiries, particularly in Brisbane’s northern suburbs, where projects now account for around 20 per cent of the franchise’s builds.
GJ Gardner Homes Brisbane Outer North director Phill Vanderneut said the trend was being driven by homeowners who wanted to stay in their communities while unlocking the value of their land.
“Historically homeowners have avoided demolition reconstruction because of misconceptions about cost and time, but the actual site work can take less than a week, and, depending on the type of residence and the original construction method, the cost is much lower than people think,” said Mr. Vanderneut.
FRONT: The original house at 87 Galsworthy St, Holland Park West, before it was demolished and replaced with a new one.
AFTER: This house at 87 Galsworthy Street, Holland Park West, was the subject of a redevelopment and recently sold for $3.2m.
“A good community and neighbors are very valuable and with our ability to customize standard plans or build custom homes, it’s very easy to build a dream home without starting in an unusual place.”
Mr. Vanderneut said knockdown remodeling can also save homeowners money by avoiding stamp duty and years of expensive repairs, while allowing them to keep existing landscaping and pools and improve the home’s energy efficiency.
“A family doesn’t have to leave their community and process as their needs change. Knockdown remodeling means the home can be fully customized and change with the family, whether it’s adding a second living space, expanding the home for more bedrooms, downsizing, or opening up a pool.”
