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Thanks for the advise guys. It made my decision easy.

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I bought a house in South west suburb of Sydney(Hammondville). It is corner block and land is 550 sqm. I bought it for 550k. It will rent as it is for 550 per week. But if we put granny flat on it for 100k then the total rent will be 300+500 = 800 and our total spend will be 650. But we...