Adding a granny flat to property

[BestInvest]

Why don't get get something on stilts that can be put on a truck later? With everyone and his dog wanting a decent GF these days resale value must be pretty good compared to an expanda van, which look kinda dodgy. You might actually get more for a decent removable version when you sold it on. Also you could get any future purchaser to pay removal costs.

I had made preliminary enquiries with a re-stumper company to place a proper house in the back, he said that no one will risk lifting one house over your front house with a crane.

So access is an issue due to the front house, but i could squeeze a 2.4m x 8m van down the side and slowly maneouvre it into place using the 4wd which is all thats required. In any case im more drawn to these expanda vans for this reason, and for the reason that i dont need to lay concrete etc, and the selling aspect, its just a thought for 15 years down the track, dont have that intention at the outset, but i would believe a expanda van would have good resale. I havent seen them in person to see if theyre dodgy, i may travel to the central coast soon to view them at the dealer.

Some ebay links
http://www.ebay.com.au/itm/NEW-Gran...681647?pt=AU_Caravans_RVs&hash=item2a1955d3ef


This also looks nice, add a balustrade and a patio on the side with some lattice on the base and it looks like a house someone would live in permanently.

http://www.ebay.com.au/itm/Relocata...745083?pt=AU_Caravans_RVs&hash=item4cfe6807bb

Thoughts?

 

[laurieload]

Hmm, see what you mean.
I couldn't find any reviews, but theres this from one council who didn't like them too much:

http://144.140.79.192/dir141/webpap...a257891007d33f6?OpenDocument&ExpandSection=-3

(but I think they put it under some power lines )

 

[Rolf Latham]

Brazen i agree with you 100%. Im new to this idea of granny flat having just bought my 2nd IP, but i have the same view. Would be interested for u to critique my views from my posts above. Im leaning towards a expanda van.... No crane needed, no concrete footing, can be towed out should i wish to have my yard back and get money back from on selling for whatever reason. Ur views?

hope u have the cash to buy the dog box

or live with a personal loan / lease on the van

ta
rolf

 

[Rolf Latham]

I like the fact that they could be towed away, whereas a permanent granny flat (which may be built at a similar or lower price and better quality, would be permanent or costly to demolish and on sell).

which is why its very likely you will have to fund this puppy from post-tax cash savings, or a rather pricey personal loan, or chattel mortgage if you are lucky.

You might want to look at the overall cash flow equity contribution position, of a proper granny flat, versus a donga !

Thanks

Rolf

 

[BestInvest]

Hi Rolf, thanks for your views. I intend on saving $10k a year, plus about $10k tax refund per year. Do this for 2 years, then take out a redraw on my home loan for $25 to $30k. This would allow the whole IP to be cashflow neutral (and possibly greatly cashflow positive should i exploit the front house as a Stayz.com holiday rental- NEXT door has made $14,000 from OCT 2011 to FEB 2012 from holiday rental) , which at that time i will have owned this IP for 5yrs.

 

[ynnug]

We have just spent over 100K building a 2-bed GF in our back yard.

It functions like a battle-axe block. Very private, doesn't affect us in the front house at all.

We're getting 450/wk rent for it - which is fantastic!!

So far though, the valuations have not been so fantastic.

We had one done before construction began (with approved plans) to get the construction loan. Definitely (in my opinion) well below 'market' value.

I've just had another valuer come through last week to once again re-value the property... in the hope to restructure our loans and begin our journey into the world of IPs!!

However, the valuer basically tore me to shreds... I'm not feeling very confident, but will let you know the outcome.

But my feeling - GF's are great to increase cash flow. Don't count on making your $$ back in 'added value'.

Just my thoughts for now - but will keep you updated...

I personally think, adding a granny flat in place of a nice backyard on a 700k house ruins the house. You might get some rent, but your valuation should decrease. I also think, there is life outside being a rent seeker....I don't want someone living in my backyard.

I will strongly advise ruining your backyard by placing a granny flat for $1m+ properties. Just my personal opinion.

 

[BestInvest]

I personally think, adding a granny flat in place of a nice backyard on a 700k house ruins the house. You might get some rent, but your valuation should decrease. I also think, there is life outside being a rent seeker....I don't want someone living in my backyard.

I will strongly advise ruining your backyard by placing a granny flat for $1m+ properties. Just my personal opinion.

I agree with you, hence why im strongly considering an Expanda Van...... easy to transport, and i can on sell it years down the track. I want the rent money to make my property cash neutral or cash positive

 

[Kael]

I agree with you, hence why im strongly considering an Expanda Van...... easy to transport, and i can on sell it years down the track. I want the rent money to make my property cash neutral or cash positive

I've been monitoring this topic because once I've purchased my PPOR or next investment property, I'd love to build a granny flat in the backyard to help pay off my PPOR so I can get some equity for my next purchase... And your "ExpandaVan" idea has intrigued me.

Can I say though, from an outsiders view, you seem VERY SET on the idea of an ExpandaVan... There have been a few people here stating why it might not be the best idea, including one person linking you to a council that outright REJECTED IT completely. Have you factored that in? Have you contacted the council you're considering putting it in? I understand that the council that did reject the ExpandaVan, that they DO allow Granny Flats upon approval but they seem extremely against these Van things... Just my two cents from an outsider view.

 

[BestInvest]

I've been monitoring this topic because once I've purchased my PPOR or next investment property, I'd love to build a granny flat in the backyard to help pay off my PPOR so I can get some equity for my next purchase... And your "ExpandaVan" idea has intrigued me.

Can I say though, from an outsiders view, you seem VERY SET on the idea of an ExpandaVan... There have been a few people here stating why it might not be the best idea, including one person linking you to a council that outright REJECTED IT completely. Have you factored that in? Have you contacted the council you're considering putting it in? I understand that the council that did reject the ExpandaVan, that they DO allow Granny Flats upon approval but they seem extremely against these Van things... Just my two cents from an outsider view.

Hi Kael, thanks for your views. I have only just bought this property for 8 months, so im only positioning myself to do this in the next 2/3 years to instantly make this second IP cash flow neutral and even highly positive. I have made preliminary enquiries with council re dual occupancy and i qualify. That article is heavily on the fact that it was under power lines. I want to save the money first and once im in a position to buy, i will at that stage enquire in detail.

I have attached a detailed plan of my house and land including existing garage, and have marked where i want the second dwelling (likely an expanda van) to go and how i will place a fence to make it look like a battle axe. You can also see the sewer line at the front.

What are peoples views on this? and is that a good place where the sewer is in terms of connections etc.
Anyone

 

[BestInvest]

Hi Kael, thanks for your views. I have only just bought this property for 8 months, so im only positioning myself to do this in the next 2/3 years to instantly make this second IP cash flow neutral and even highly positive. I have made preliminary enquiries with council re dual occupancy and i qualify. That article is heavily on the fact that it was under power lines. I want to save the money first and once im in a position to buy, i will at that stage enquire in detail.

I have attached a detailed plan of my house and land including existing garage, and have marked where i want the second dwelling (likely an expanda van) to go and how i will place a fence to make it look like a battle axe. You can also see the sewer line at the front.

What are peoples views on this? and is that a good place where the sewer is in terms of connections etc.
Anyone

Just re-enlivening this post. Does anyone have any ideas re this, and my plans and the sewer diagram, ur feedback and discussiin is appreciated!!

 

[brazen]

Just re-enlivening this post. Does anyone have any ideas re this, and my plans and the sewer diagram, ur feedback and discussiin is appreciated!!

ExpandVans simply cant be approved as granny flats or as any other residential dwelling. They are a caravan; they can drive away hence are not classified as buildings under The Act.

They would also fail BASIX and other essential certifications.

 

[Ideo]

ExpandVans simply cant be approved as granny flats or as any other residential dwelling. They are a caravan; they can drive away hence are not classified as buildings under The Act.

They would also fail BASIX and other essential certifications.

Yep.

They can be considered as a removable dwelling under the LG Act but that's it.

You cannot use the SEPP to get such a structure as complying development.