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Unfortunately yes. But as retirerich mentioned, on the open market, it would probably fetch $700k (therefore a difference of $60k between open market and bank valuation). Based on that, your 2 bedroom granny flat is valued at $85k by the bank, or $145k by a buyer in the open market :) Also...

Exactly. The point of investing is to make more money so that we can be comfortable. If you can't sleep at night, you aren't comfortable. Kind of defeats the purpose of getting into this game to begin with.

Pretty much what James has said. Short of you posting you the actual address, your best bet is look up sold properties. Easiest way is to use the domain app, look up 2 bedrooms in blacktown, then click on market insights and check out the sold properties. From there you can gauge what your IP...

Sure, happy to have a crack. But what exactly do you mean by "add value" - in what areas?

To me this is a prime example. The granny flat is about cash flow, cash flow that can help you sustain the property. We all know property growth isn't linear. It goes through its peaks and troughs just like anything else does. We just need to hold it for long enough to make that growth...

The granny flat was built in 2009. Therefore for the valuation in Dec 2013 it already existed. Same with the valuation in 2014. In Dec 2013 the numbers indicated I got $1 for every $1 spent. However applying indexation of 3% to the numbers, $130k = $146k. So in actual fact i lost money on the...

This is the exact reason why i made this thread.... Granny flats are great cashflow cows.... just don't expect the granny flat to add onto the valuation. The problem is that people mix organic growth and manufactured growth and claim what makes them feel happy. As has been demonstrated in...

Hi Toni, I think you misunderstood the data i posted. The bank valuation came back as $1,050,000. Within the valuation, the properties that it was compared against were 5 bedroom homes. The valuer will not look up 3 bedroom homes then "estimate" a granny flat value to add on - (as far as i...

Just realised i didn't post info about the property the bank valued. Existing house 3 bedroom, made of monocrete (http://en.wikipedia.org/wiki/Monocrete_construction). Built in the 1950's, renovations are new kitchen in 2003, polished floor boards, downlights, air con, walls have been...

How much value do granny flats actually add I've seen a few threads pop up lately asking about this so i thought i would share some real data and let everyone draw their own conclusions. An IP with a granny flat in Sydney had a bank valuation done for equity release purposes: Dec 2013: 900k...