An upcoming granny flat build thread

Hi Menty,

Looking good and glad the builder you've stuck with has been good to you so far.

Regarding rent, I would be careful with how I am advertising...since the dividing fence is up I will not even hesitate to advertise it as a brand new 2 bedroom house (dont mention granny flat or unit) with a nice pic of the front of the GF just to get some heads in the door. Lower interest rates and the silly season might mean you will have to take a $20 - $40 hit in rent to get someone in the door for a 3 month lease and increase it gradually once theyve settled in....trust me this is a much cheaper option than waiting weeks for the "right" tenant to come along

A tip in getting separate bins....wheel your existing one out back and call council saying someone stole yours....they'll deliver you a new one for free in which you'll label one as street number and the other as street number A.....this will probably save you a couple of hundred a year in extra council fees if you were to apply for one legitimately....many people argue council will find out eventually but in my experience this never happens and garbage collectors cant be arsed and just empty any bin they see in sight!
 
I would need a new recycle bin and rubbish bin though. Someone stole both?

Also, why do you suggest a 3 month lease and not a 6 month?

And when do I order a valuation?
 
forget the recycler I would just ask the tenants to share....

3 months is pretty standard for new tenants as you don't know who they are and will be a safety net for you if they turn out to be nightmare tenants....you can extend for however long you like after 3 months or if you're bold enough raise rents but I would usually do this after 6 months so tenants arent feeling squeezed


you can call for a reval whenever you want since you have done major works on the property and you didnt buy it in its current state yesterday....just have both places tenanted to make the cashflow look healthy and have a good reason for the bank to give you equity - (i believe they are getting pretty stringent on people simply getting 'cash out' nowadays)
 
OH, I meant a reval for CGT purposes. It was a PPOR before all this started (for 10 months)
Would I have to set it for a specific date or not?

I have already done a val for just before the granny flat was built
 
Hi Menty,

It's been a great thread to follow

How big was the block?

Just looking at the below, whats in this room with the large gap along the floor/wall?

menty said:
img2335gn.jpg
Click to expand...

Did you have to dig up the old concrete at the rear of the property for this new section?

menty said:
2 car park spaces for the granny flat.

img2430yq.jpg
Click to expand...

Any chance of a photo of the front of the property showing the old house and new granny flat entrance?

Did you have to build a new carport for the old house
 
How big was the block?
Block is approx 700m2. However I had a sewer line running across the rear, so that pushed the granny flat forward 10 metres.

Just looking at the below, whats in this room with the large gap along the floor/wall?
That would be the bathroom

Did you have to dig up the old concrete at the rear of the property for this new section?
Yep. Luckily it didnt need a bobcat.

Any chance of a photo of the front of the property showing the old house and new granny flat entrance?
Ill try to get one. Basically it still looks the same.

Did you have to build a new carport for the old house
No, But I they will be getting a concrete car spot in front of the old house.
I cannot build a carport because you can only have 1 carport per dwelling, and cant put a carport in front of the building line without a DA


Also on another note, I will probably be going with EBM landlord and building. With 2 months free, the premium is $1400. $1600 normally. When should I start this? Now , or when tenants move in?
 
Internal paint complete. Gas meter installed.

To do: external paint and electricity meter. Front house concrete car spot.
p1180202d.jpg


p1180205y.jpg


p1180206.jpg


p1180208.jpg


p1180220o.jpg
 
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Hi Menty,

Looks really nice what was the final turn key price for the build? also the final cost including build, approvals, site changes..

good luck with rentals and it looks really nice..

somerhut
 
Menty

Great job, good to follow your progress and fantastic rent for the gf..... I get 370 for mine in blacktown. Similar gf to yours. My gf tenants feel very private, and are fenced off from the front similar to yours.


Vicki
 
Pretty much all done.
Just waiting for the power meter and OC (not sure how long this takes)

GF build cost (incl approval, site costs, tree removal etc): 108000
Move bathroom: 700
Extra for better tiles: 150
Concrete: Estimated 5000 (could be a bit more)
Fence to divide 2 houses: 1600
Side fence (split with neighbour): 1530
Grass: 1100
2 clothes lines: 260
Shed: 240
Letterbox: 15
Blinds: 180

TOTAL: 118775

Front house bought for 513000
Stamp duty 2923.70
Renovations: 2670.18

TOTAL: 518593.88
LMI:3000
GRAND TOTAL: approx 640.4K

Expected rent 850
expected yield 6.90%


Just as an aside, everything in the house works. Water, gas , electricity.
However, it is currently being run off the front house I assume.

How do I get the gas to be separate from the front house and electricity to be separate from the front house? If I disconnect the power and gas for the front house, I'm not sure if the granny flat will have power and gas.
 
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Cash flow

menty said:
Pretty much all done.
Just waiting for the power meter and OC (not sure how long this takes)

GF build cost (incl approval, site costs, tree removal etc): 108000
Move bathroom: 700
Extra for better tiles: 150
Concrete: Estimated 5000 (could be a bit more)
Fence to divide 2 houses: 1600
Side fence (split with neighbour): 1530
Grass: 1100
2 clothes lines: 260
Shed: 240
Letterbox: 15
Blinds: 180

TOTAL: 118775

Front house bought for 513000
Stamp duty 2923.70
Renovations: 2670.18

TOTAL: 518593.88
LMI:3000
GRAND TOTAL: approx 640.4K

Expected rent 850
expected yield 6.90%


Just as an aside, everything in the house works. Water, gas , electricity.
However, it is currently being run off the front house I assume.

How do I get the gas to be separate from the front house and electricity to be separate from the front house? If I disconnect the power and gas for the front house, I'm not sure if the granny flat will have power and gas.
Click to expand...


Hiya

Not to burst your bubble :rolleyes:but are you at best cash flow neutral?

Total cost 640400 (btw your stamp duty seems a bit low?)

Interest only 640 400 * say 5.5% interest rate= 677 per week

Weekly (gross?) rent 850
Weekly net rent say 80% * 850= 680 per week


( i am happy to be corrected though.....just want to learn from your experience of your granny flat financials):p
 
virgo said:
Hiya

Not to burst your bubble :rolleyes:but are you at best cash flow neutral?

Total cost 640400 (btw your stamp duty seems a bit low?)

Interest only 640 400 * say 5.5% interest rate= 677 per week

Weekly (gross?) rent 850
Weekly net rent say 80% * 850= 680 per week


( i am happy to be corrected though.....just want to learn from your experience of your granny flat financials):p
Click to expand...

Probably.

But my LVR is about 80ish%

SD is that low because it was a FHOG property and I had lived in it for 6+months.

The financials probably dont stack up as say one in Blacktown, but I figured it was a risk worth taking if it was to be a long term investment and while I was young.
 
Found a new front tenant today @ 460/week. Moving in 21/12
Separate parking space for front tenant, and driveway to the granny flat can be seen

p1180228.jpg



Granny flat will be cleaned up this week. Hopefully OC next week. I still dont have the keys and so the agent cant show anyone through.

Also noticed the trees next to me are dropping ridiculous amounts of seedlings and leaves all over my properties and gutters. Perhaps this may block them I dont know. I have asked for them to be trimmed. They need council approval ETA 3 months. Can they simply lop them down instead?
 
hmmm...is extra parking space necessary? slab of concrete mustve added a few grand to your costs?

will it bring in more rent?
will it improve the real value of your property in a valuers eyes?
 
Hopefully it will bring in more value being an extra carspace

I had initially decided against it, however I got it done for quite cheap so am not bothered by it. Also if the school ever does decide to make more use of the rear exit then my tenants would have a spot to park
 
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