G'Day everyone,
My girlfriend and I purchased our first home (small unit in Erskineville) about 18 months ago and have been living there since then
My girlfriends father has been really sick lately and unfortunatley will not be around forever so we have to take steps for her to be closer to her family to be with them and help out where she can with things around the house
They own their house out right in Botany but instead of moving back there straight away we are investigating the possibility, pros and cons of building a Granny Flat versus sub division
I have been doing some research into this and the NSW Government has released an innitiative (SEPP) which essentially allows for a streamlined DA on a granny flat which is approved in 10 days. The only problem being that the flat can only be a maximum of 60m2 in size
I'm leaning towards sub division only to the point that further down the track, rental yield on say a 2BR flat will be higher than a smaller granny flat
Just looking for opinions or suggestions on anyone thats has come across this
Many thanks,
KevinHi beans,
Check out GFA – granny flat australia. They build 2bd granny flats, and the 60m2 in size includes bedrooms and living area etc, it does not include patio or decking or car port etc. http://www.grannyflatsaustralia.com.au
from the front page of grannyflatsaustralia.com.au "By investing $105,000 in a granny flat, it can be rented for around $350 / week, and then extra income can help to reduce the mortgage by several years."
wow you can almost build a house for that price…….
The rental return figure is also misleading. The return will depend on the location of the grannyflat.
Jacqui Middleton | Middleton Buyers Advocates
http://www.middletonbuyersadvocates.com.au
Email Me | Phone MeVIC Buyers' Agents for investors, home buyers & SMSFs.
Hi,
I am also looking to build a granny flat at the back of one of my properties.
Can someone help me find out what is required. I rang the council up and all they said i needed was a building certifier.
Basically i have the shed/garage that i can use already. I just have to fit it with flooring, ceiling, little kitchenette and bathroom. I am looking to build this for the cheapest price possible.
Can anyone recommend a good building certifier??
How much do you think i would need to complete the project??
Has anyone done this before, and what are the steps that need to be followed.
My House is in Runcorn Brisbane and i am in SydneyHello Folks
From a rental perspective, Granny Flats are great for the elderly in-laws, adult child or a rental if you are living in the main residence.
if you plan on renting out both the Granny Flat and the Main Residence later down the track you will have difficulties…
From experience, where you have a granny flat on the same title with shared power / gas bills, no formal fence seperation etc, a lot of quality tennants are really hesitant.
Eg. If you were a family with a couple young kids (with a good rental history – the type of tennant you actually would like to rent to !) would you really want to rent a property which has a granny flat in the back yard, which is most likely going to be rented by a young single guy – who you have never met & have no real influence over wether he stays or goes, or who he is replaced with if he does move on ?
Cheers
Beans,
There are a number of things to consider. Your main concern would be time frames. It could take up to 6 months to have a subdivision done plus a build. So you are looking at around 12 months to turn key.Subdivisions can also cost a fair whack. Will the money be coming from the Botany house?
Subdivisions are a great way to make some cash but can be very time consuming and stressful.
I currently manage over 80 granny flats in the sydney area. At first i thought it would be a problem in renting two separate properties out on the same block of land. All the granny flats i look after are separate power, have a separate water metre and they come 1,2 and 3 bedrooms with total size of 60sqm. On rental returns it depends where the granny flat is located and how much yard does it have. If you have a good managing agent thats picks the right tenants for both properties you would not have problems with tenants.
The other consideration is that – should circumstances change, and they sometimes do – you would be unable to sell the granny flat as it will not have its own title.
Most investors that have had granny flats built are you steel frame construction then if they ever want to sell the property and they think there have over capitalised then sell the granny flat or put on another property. Similar to a portable home. You do pay connection fees and removal fees but might work better.
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