if it was me I'd build the Granny flat. Spend $120.000 and get $350 to $400 back is a no brainer. As long as you are comfortable in having someone else in your back yard and losing some of your back yard.
Then again, if you can buy a cheepie and add value with a reno the capital gain could be...
Hi, Stick to a suburb near the railway. I suggest you also look at Penshurst, Mortdale and surrounding suburbs. The cheapest I've seen latley was in Mortdale $255.000 for a one bed no garage and needing a reno. prices rise from there but they sell well and rent well. Ring any agent to see what...