Forum Replies Created
The property market doesn't always go up….it also flat lines or even falls. Steve McKnight's book (0 to 260) assumes in general that property goes up in value around 30% of the time.
At this stage I've decided to hold a little longer. Think there is a tiny bit more growth to come.
I guess what I'm asking: is the property market about to flatline for the next several years???
The days of cheap money are now gone.
I guess the only risk you run is insurance liabilities from tenant in un-approved granny flat (i.e. tenant being injured due to fault with accommodation)…I'm sure insurance companies would not pay out because of this???
I too, am looking at purchasing a property with a separate granny flat. It was originally a shed and garage all in the one. Now it has been renovated into a 2 bedroom granny flat with kitchen, bathroom, and garage. Buyers are spooked, and so am I, as the granny flat was only approved as a shed, not a liveable dwelling for humans to live in. Vendors are currently working to get some sort of approval from council so they can sell the property as fast as possible.
Some issues here….ideally it would be good if the granny flat was approved as a separate dwelling/accommodation in its own right. Then you could install a separate electricity meter and have a completely legal tenant residing. The agent has said that if council does approve it will most likely be only approved as a granny flat…which means you cannot install a separate electricity meter, and you aren't supposed to be renting the flat out as a separate accommodation. However the agent tells me that he has many setups where landlords rent out granny flats illegally (so to speak). And landlords simply add extra charges to the weekly rent for water and electricity. What are the risks of this???
If accommodations can be rented out, total rent would be $240 for house and $160 for granny flat. $400 p.w in total on a very low $200ks investment. Not a bad return.
Does anyone have any comments on this? Advice from previous experience??? Please help Cheers
The problem is, someone would still own the land right?
