All Topics / Help Needed! / Granny flat advice – Canberra

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  • rohan22no
    Participant
    @rohan22no
    Join Date: 2011
    Post Count: 2
    March 28, 2011 - 2:24 am

    Hi All,
    Ive been on this forum for several years and made a couple of posts a while back. Signed up a new account as I couldnt remember my old username for the life of me.

    My story – Im 25, and am self employed. Live in Belconnen, Canberra.

    3 properties

    1. Bought a small unit in Cowra for 81k in 2006. Not a spectacular deal by any means, but a very cheap one. My thinking behind this purchase (being my first) was that its better to make a mistake early on a small deal than a big one later on. It is currently rented for $110 a week, costs me probably 5k a year overall with loan repayments/strata fees etc.

    2. Bought a house in Wagga Wagga in late 2007 for 145k, doing pretty well and is currently rented out for $240 p/w.

    3. Bought a house in the suburbs of belconnen, ACT in late 2008 for 400k. 4 bedrooms on an 850sqm block, it is my PPOR and I live with 2 of my mates, who pay me $150 p/w each.

    The situation is now that I have 2 IP's looking after themselves or near enough, im thinking the most profitable move for myself at the moment is to build a granny flat/kit home (whatever you want to call it) out the back of PPOR. Ive got a pretty big backyard, and I basically never go out there. Seems like (almost) free money to build a 2 bedder granny flat out the back and get a couple, or a uni student or two moved in.

    Of course, I know its not that easy and theres no such thing as free money. Heres what I have little to no idea about, and all the questions I can think of :) Btw, ive googled this plenty, but just keep running into advertising for builders.

    1. What do I have to do to get the planning started for building a granny flat?
    2. What are the granny flat regulations in the ACT?
    3. Can anyone recommend a builder/granny flat company in ACT/NSW?
    4. What is the expected cost for applications/building/maintaining?
    5. What else do I need to take into consideration that I haven't mentioned?

    Any advice, comments, random thoughts are greatly appreciated, I know there are some fantastic brains on this forum and im looking to hear from you all!

    Cheers
    Rohan

    Profile photo of angelinsydneyangelinsydney
    Participant
    @angelinsydney
    Join Date: 2011
    Post Count: 270
    March 29, 2011 - 9:09 am

    Hi Rohan,

    If you google the Canberra Council website you will find the answer to all your questions. http://www.act.gov.au.

    Angelina

    Profile photo of Marty McDonaldMarty McDonald
    Participant
    @marty-mcdonald
    Join Date: 2010
    Post Count: 64
    March 29, 2011 - 11:42 am

    I believe granny flats are looked upon kindly by acpla. Contact them to see if allowed on your block first then next step is to get an idea of cost involved in building and if finance is likely available to you.

    You want a granny flat with seperate kitchen, bathroom, living room and bedroom(s) to give you maximum finance options. If all seperate then can include potential rental income when going for your loan (if needed). If the build is less than say $150k and you don’t need rental income to service the loan in the lenders opinion and you have the equity in your home you might get away with not doing a construction loan which may simplify things as well.

    Marty McDonald | Mortgage Experts
    http://mortgageexpertsonline.com.au/
    Phone Me

    Profile photo of kelleyhutchokelleyhutcho
    Member
    @kelleyhutcho
    Join Date: 2007
    Post Count: 10
    March 30, 2011 - 11:26 pm

    Hi Rohan, A granny flat was our first investment property. w ehad a high set Queenslander  and built a beautiful flat underneath with a sep entrance and  yard. It cost us $70 k all up and it rented for $190 per week for years, then when we sold the home, it was an advanatge to have it as it value added to the property. I'd do it again at the drop of a hat. Make sure you have a sep elec meter. I also think the more modern and roomy it is the more rent you will get so don't skimp. Council will be able to tell you their legal requirments. We also used a architect who arranged all the certifications and approvals so it was very easy. Good Luck! Kelley

    Profile photo of Jamie MooreJamie Moore
    Participant
    @jamie-m
    Join Date: 2010
    Post Count: 5,069
    March 31, 2011 - 5:20 am
    kelleyhutcho wrote:
    It cost us $70 k all up and it rented for $190 per week for years, then when we sold the home, it was an advanatge to have it as it value added to the property.

    Hi Kelley

    Well done – those figures are impressive.

    How much extra do you think your property sold for with the granny flat?

    Cheers

    Jamie

    Jamie Moore | Pass Go Home Loans Pty Ltd
    http://www.passgo.com.au
    Email Me | Phone Me

    Mortgage Broker assisting clients Australia wide Email: [email protected]

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