On a new IP, I am renting out the front, I have put in a dividing fence which is leaving about 200 square meters of a rear block. The back also has a brick "shed" with tiles, prolly about 50 square meters.
The rear also has access via ROW.
If I were to "do up" this "shed", so that its basically a studio with a bathroom as well, is it possible to rent it out?
I would like to know if you are interesting in completely redoing the shed. I think that it would be a good thing to look into our website for more information as you could have a better idea about what you could do and what are the options available. Now, coming to the renting part, I would say that it is but then there are plenty of formalities involved. I would first suggest you to "do up" the shed first and think about the others later on.
It would depend on council – are granny flats permissible? You would need approvals for the conversions to a habitable dwelling as well as for plumbing etc.
You may be better off leasing the shed out for storage so factor that into your comparison calculations.
have an informal chat with your council, just don't give the address. Ask about their requirements for granny flats or similar. It will need to meet various building codes in terms of ceiling height, waterproofing, ventilation, insulation and some other factors, all part of "doing up" the shed. if you're planning to lease to someone through an agent and have a legit contract and everything bear in mind any legal requirements for fire alarms and RCD switches. Might also want to check about putting in separate meter for power usage, unless you plan to include utilities with the rent.
Do all the research to see if its possible before spending a cent on doing up the shed, otherwise you may be wasting your money.
ok this is mute since the tenant was expecting to use the back for storage.
thats ok anyway, over the next year im going to go through the approval process to build on the back.
Im working with my local real estate agent to work out what to build so i dont over capitalise.
It looks like Ill be building a 3×2 on the book and spending some money on the front to bring its value up.
This will be done in stages. Ill first build on the back, rent it, then work on the front.
Sounds like you’ve got it sorted. Seemingly many people go down that road to keep some cashflow going through the building / renovating process. Have you checked out your zoning and current copy of title to see if there are any limitations to development?
All the due diligence was done prior to purchase.
Its 739m2 R30 with ROW, no encumberances or limitations on the title, all below ground utilties arr clear.
Rear block 270m2.
In the next fortnight Im organising a surveyor to come in, Im still in the process of deciding on the plan, current favourite is a 3×2, double garage. Waiting on a turn key quote, should get it next week. Im also considering desining it myself, having it drafted then have privat builders price it up.
Good to see you’ve done your research! I assume by R30 you’re located in WA.
I always tell clients to do more than enough research thoroughly to eliminate any future issues. The more the better.
Just a word of advice, look up the processes for development in your state, the steps will be the same from one council to the next, with maybe some little things changed here and there. From some rough research on the rest of Aus, the development processes are roughly the same. You might have noticed I posted up a Subdivision Flowchart on development. I’ve noted all the different professionals that should be involved in the process, call a few places around and get some quotes together and you may be surprised.
I’ve had a few people come to me with unbelievably high prices for turn-key development where huge profits must be made from the developer. I’m not by any means saying this accounts for all developers or professionals in the development industry (I know of some particular companies that prey on peoples lack of research), but there definitely are some dishonest people out there.
Ask your surveyor for a breakdown of the subdivision process and all the council costs involved anyway. A good surveyor will be more than happy to explain every step to you.
Cheers,
Ashleythanks Ash, and yes Im in WA.
I did notice the thread you created, Ill take a look at that flow chart as well.
Thanks for your advice, Ill be sure to raise my questions as they arise.
just make sure that the potential retuns via rental income will be worth it to proceed with the costs of developing and renovating that shed
go for a granny flat (if you can get one.) it’s possible to get a decent granny flat completely installed for about 60-70K which you can then rent out for $200+ a week.
it won’t be huge but does that matter? nope
jasonjw wrote:go for a granny flat (if you can get one.) it’s possible to get a decent granny flat completely installed for about 60-70K which you can then rent out for $200+ a week.it won’t be huge but does that matter? nope
It really does seem to be a trending way to go. I’ve noticed the granny flat surveys have really taken off the last 6 months. Were very few and far between previously with most developments being home extensions or subdivisions. Definitely is a great low-cost idea for maximum return!
i love the idea of granny flats… easy way to add money to your income stream
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