A single dwelling covenant restricts a property to one home only – no subdivision, no dual occupancy, and no townhouse development. These covenants are common on properties sold from estates in Officer and Pakenham between the late 1990s and the 2010s, and can impact both buyers and sellers.
Why does this matter when buying?
For buyers, a single dwelling covenant protects neighbourhood character. However, for sellers, it can reduce interest from developers and investors who are looking for development potential.
How does a covenant affect property value?
On larger blocks, a single dwelling covenant can suppress the price by $30,000 to $60,000 compared to an unrestricted title. It’s crucial to understand this impact before you price a property for sale.
Can a covenant be removed?
Removing a single dwelling covenant requires a legal application through VCAT. This typically takes 6 to 12 months and costs $3,000 to $8,000 in legal fees. KR Peters can point you to specialist conveyancers who regularly handle covenant removals in this corridor.
The honest reality
While a covenant protects neighbourhood character, it also limits options. On larger blocks, the price suppression can be significant. Buyers need to weigh the benefits of a quiet neighbourhood against the potential for future development, and sellers need to understand the impact on their property’s value.
Questions to consider
- What are the long-term implications of a single dwelling covenant for your lifestyle and future plans?
- If you’re selling, have you factored the potential price suppression into your expectations?
- Is the cost and timeframe of removing the covenant worthwhile, given your objectives?
Talk to KR Peters for a straight-talking appraisal with no obligation.
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Market information is general in nature and reflects conditions
at the time of publication. For advice specific to your property,
contact KR Peters.