Hello everyone,
I have recently heard about a house and land package which is similar to a duplex, but only on 1 title. There is a 3 bed dwelling with a DLU garage oneside and a 2 bed dwelling with a SLU garage on the other. The two dwellings look like 1 house and it sits within a land estate the same as any other house.
It boosts the rental returns significantly as in most estates there is only 4 bed homes, so providing 2 bed and 3 bed rental options increases the rental returns from say around $400pw to around $575pw (3 bed $325 and a 2 bed for $250). Those are probably a bit conservative anyway for rentals.
Has anyone heard of this? Has anyone purchased one? They sound very attractive from a rental return perspective as an investment.
Cheers
JoeThese are called granny flats, or secondary dwellings. They are allowed (in NSW at least) provided the land is more than 450m2 and also if the development meets certain other local government criteria. They can also only be a maximum of 60m2 in internal living area.
This is a good way of increasing rental yields on an existing property.
Cheers,
LukePLEASE EXCUSE THE CAPS…IF THEY ARE ON ONE TITLE, I WOULD RATHER BY THEM AND SPENT A BIT OF MONEY TO STRATA THEM, SELL ONE AND EITHER SELL BOTH OR SELL ONE AND RENT THE OTHER, THUS HAVING PROFIT UPFRONT AND ON THE BACKEND.
Secondary dwellings can be built on blocks of land that do not meet the requirements for subdivision. Sure, if you can subdivide then I would definitely subdivide. But if you are not able to subdivide, then building a secondary dwelling is a way to gain extra income and bring the property to its most profitable use.
For example, some councils require minimum block sizes to be 400m2. This means that you need a minimum of 800m2 blcok to subdivide. However, with a complying development, you can build a secondary dwelling on a 600m2 block of land even though you are not able to subdivide.
Cheers,
Luke
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