Hi Buddy Fox,

I grew up not far from there but having said that not really kept an eye on Woodbury. We have rpdata here in the office so if you want to know about a particular property and the ones around it you can send me a private message on forum and I will see what I can do by way of a CMA and suburb report for you.

There is absolute merit in designing and siting granny flats so they they can be interchanged as either an investment earner but also as a family’s backyard cabin, teenage retreat or guest accommodation. It pains me when an investor buys a property which simply has bad separation and bad geometry. This I must agree is the destruction of a rear yard. It makes me cry- I simply refuse to do approvals on blocks which aren’t spatially ‘right’.

Have to agree that design is the key. If you are looking at a refinance of your granny flat loan after completion it is important to ask are you using the right bank – who is doing the valuation and remember that the valuation (whether favourable to you or not) is entirely and completely separate to the true market value. Valuations are based on historical comps (as mnentioned) and when you sit your property on the market to sell you need to see what the market will pay for it. If you have done a good job (great job really) then the market will respond as you have added equity and cash flow. Now in most peoples language that is a good outcome. But if you haven’t – well you haven’t and the market will tell you that at sale time. Valuations are just a finance tool. Another one of the tools we use as investors to get things done that we need done. Probably a good idea to respect them but not get to hung up on. Robert Schiller says that finance is the technology of getting things done. Nothing more and definitely not rocket surgery. Often times, what people are doing with a granny flat strategy is converting properties that leak cash into properties that add cash. Now I have been banging on about this since I joined the forums and been in a couple of heated stouches over that back in the day. If something is leaking then plug the leak.

As for the Northern Sydney versus Western Sydney debate. Well I look at it this way. Some things are generally more saleable than others before we throw the grannys into the mix. As a starting point its good to ask a due diligence question, “Is the property whether it be out west or some other place a good idea before the granny flat. If yes proceed. Is the granny flat is the key to making the deal a good idea – avoid! A great property that has had a value add strategy applied to it will be great plus have some income. A dog property will be a dog property with or without the GF on it. When I am investing for myself I always ask the question, “If I am not around can this property support itself.” If it can’t then the exit strategy has to be pretty good to justify a purchase.

• This reply was modified 10 years, 2 months ago by  Don Nicolussi.

Mentors – such a hard question because it goes back to how you learn. If you have had any workplace education lately you may have come across learning styles debate. Peter Spann is someone I have read widely, I read everything Steve has published as well which is extremely valuable but again not new at all. To be honest I was very surprised about Steve’s negative blog on using smsf to purchase property. I mean after 2008 who would want to be approaching 60 and have a portfolio full of paper assets. At least with paid off property you have rental income to sustain you (plus tones of other property strategies to turn equity into cash) . It felt a bit like that was taking us all back a dozen years in terms of strategy and thought leadership in the are of property education and can’t really understand the thought behind it – and then other things I read from him seem to be spot on. I have a feeling Steve may change his ming on that one in his next book ( being cheeky now) Like Nigel said it will come down to doing deals. Nigel has been on these forums for years perhaps give him a ring.

• This reply was modified 10 years, 3 months ago by  Don Nicolussi.
• This reply was modified 10 years, 3 months ago by  Don Nicolussi.

There is a NZ forum a bit like this one. Olly Newland and Kieran Trass were very active. Kieran had a few difference business in the education and stats field. Last I heard Olly was doing mentoring – but that was a while ago.

Se7en – just wondering is this a project home builder or are you having builders quote on a design of yours that you have submitted to your local council and received approvals on etc.

Hi – as the others have said that is a very difficult question to answer and will depend on so many factors.

* Just an important note – at least I think it is. Is it a design that you have used before or are you looking for them to develop the concept for you.

* Are they going to release the dwg files.

* Get something in writing that the concept and design is yours not theirs.

This issues will become very important if as you say you want them to bring it to a "certain stage". If you want to sell with approvals and not build it you want these things covered off. Good fun though!

A 4 unit job could be cheaper than some of the prices quoted above but one simple item such as storm water engineering requirements could add an extra 5k. No harm in drawing up a list of your top 3 based on recommendations and their portfolio of work and then factoring price later.

Would they offer a fixed price? How much are revisions?

Will you get 3d renderings that you can use in your marketing campaign or are these extra. What software are they using. Almost everyone uses the same programs but check. Are you going to use engineers they recommend etc or will you to that separately.

In the end a bad design will cost just a much to build (or more ) as a good design so go for quality.  My preference is to get the DA and CC drawings done at the same time but that will depend a lot on your council.

Simon,

Superfund? Have you considered if the combined balance of your current funds will let you leverage into an investment property through a Self Managed Super Fund. You mentioned "maxed out" so it looks like you have a concern about your current income supporting borrowings. Something to think about. You could also structure something like an NRAS property inside your SMSF. Granted this is a bit niche and would not do anything to offset the negative cash flow position of your current portfolio. The other negative is that gains will be effectively quarantined inside the smsf so you would have to weigh that up to. Have a few more ideas but actually just cooking tea for the kids so I will try and get back to this thread later. Cheers.

Hi _ do you have any further information. What are your goals? Upfront valuations will determine your true equity position and this will be a good starting point. However, we will need to know the income side of the equation to have a look your ability to leverage that equity into other investments

So working backwards you could ask a different question. Are you a buy hope and pray investor. If yes then these figures are very important. Hang on, or are they? Aren't they just record or historical data rather then predictors of future growth. To work out what is going to happen in the future you will have to do buckets of research and then do what some people call "take a position".

When you take a position you use all the available data and back yourself. What is happening in the economy and macro front. Forget about the housing itself. Strangley this is one of the last indicators you should use at it is lagging two to 5 years behind the drivers that cause the growth in prices.

HI jmsrachel – dare i say it – stop watching ACA and read a book or download an audio book and listen to it. ACA would be about as productive for you as listening to talkback radio. Please don't hate on me ray hadley fans.