An upcoming granny flat build thread
- Thread starter menty
- Start date
Wait until you get enough "serious" offers and see whos willing to offer the best price + you might want to be a bit selective on the type of tenants, as they will be sharing with the main house - ie you might decide to accept $20 less ( $380) for a professional couple over a larger family with young kids etc...
Dont want to start scaring good tenants away just over $20, let them sample the goods and then talk about price
Finally handed over the keys for the rear tenants. All done now.
Here are the numbers.
GF build cost
TOTAL: 118775
Front house bought for 513000
TOTAL: 518593.88
LMI:3000
GRAND TOTAL: approx 640.4K
Front house rent: $460pw
Rear house rent: $380pw
Management fee: 4.4%
Approx 41500pa
Loan amount: 351K @ 5.5% IO; 77K @ 5.85% (LOC)
Approx total yearly interest: 24000pa
Only thing I would do in the future is to check references for tradesmen I think. I had a shocking tiler, but that's about it.
Agent has advised against rent increases in 6 months, so Ill just do it after 12
Iv been advised that I can do a valuation in the future and backdate it if and when I decide to sell, so that isn't a problem at the moment.
Here are the numbers.
GF build cost
TOTAL: 118775
Front house bought for 513000
TOTAL: 518593.88
LMI:3000
GRAND TOTAL: approx 640.4K
Front house rent: $460pw
Rear house rent: $380pw
Management fee: 4.4%
Approx 41500pa
Loan amount: 351K @ 5.5% IO; 77K @ 5.85% (LOC)
Approx total yearly interest: 24000pa
Only thing I would do in the future is to check references for tradesmen I think. I had a shocking tiler, but that's about it.
Agent has advised against rent increases in 6 months, so Ill just do it after 12
Iv been advised that I can do a valuation in the future and backdate it if and when I decide to sell, so that isn't a problem at the moment.
Yep, yep. I thought about that actually (landscaping, extra letterbox, fencing etc). Its not too bad, as long as you didnt have to do any work yourself.
I got the tenants to organise it but reimbursed cost as the connection stays with the house. To me that's the fair thing to do
Driveway looks shocking,apart from that nice build.
.
Not everyone understands the concept of doing what's right as opposed to doing what's good for my hip pocketI got the tenants to organise it but reimbursed cost as the connection stays with the house. To me that's the fair thing to do
.Hey menty,
Well done mate!
Which builder did you use? I am also thinking of doing it it very soon?
What would be your advise as you have gone through this path?
Well done mate!
Which builder did you use? I am also thinking of doing it it very soon?
What would be your advise as you have gone through this path?
Came across the issue of the telephone line today.
Tenant wants to connect ADSL, but obviously there is no line.
So, Ill be getting them to connect it up and reimburse them later. Approximate cost would be about $300-400??
On another note, AGL STILL hasn't registered the gas meter. Very unsure what is going on there. I just keep on getting forwarded to different departments. Hence, this means I cannot cancel the account or get a final meter read.
Oh, and apparently, most of the grass is dead.
Tenant wants to connect ADSL, but obviously there is no line.
So, Ill be getting them to connect it up and reimburse them later. Approximate cost would be about $300-400??
On another note, AGL STILL hasn't registered the gas meter. Very unsure what is going on there. I just keep on getting forwarded to different departments. Hence, this means I cannot cancel the account or get a final meter read.
Oh, and apparently, most of the grass is dead.
It's been a while since I have updated this.
Just thought I'd to give you guys a quick run down of the numbers.
Initial purchase (Nov 2011): 516K
Valuation (Sept 2012): $520K. Pre granny flat build
Granny flat build cost: Approx $120K
Rental return $380+$460/week
Depriciation: $3-4K per year
Valuation (September 2013): $613K. Desktop valuation only. I will update with the full valuation next week.
Just thought I'd to give you guys a quick run down of the numbers.
Initial purchase (Nov 2011): 516K
Valuation (Sept 2012): $520K. Pre granny flat build
Granny flat build cost: Approx $120K
Rental return $380+$460/week
Depriciation: $3-4K per year
Valuation (September 2013): $613K. Desktop valuation only. I will update with the full valuation next week.
thought the desktop val should come a little higher considering its nearly 2 years since your purchase?
Interested to know what the full val comes in at.
are there enough granny flat properties sold in last 6 months that can be used for comparison? Probably best to study up on them, and provide them to bank valuer...
Interested to know what the full val comes in at.
are there enough granny flat properties sold in last 6 months that can be used for comparison? Probably best to study up on them, and provide them to bank valuer...
We did a proper valuation at our Pendle Hill property. It came at 725K. I think the main house alone is about 630-650K. We spent 112K on the granny flat a year ago. Again lack of similar sold properties were a problem. Why would anyone want to sell if they are cashflow positive and has high potential of growth??
Sorry, but I fail to understand why this it a problem. It's likely that the desktop val doesn't include the granny flat at a guess, but my initial intention was to make back the granny flat value, and I have done that in 2 years (albeit due to the market).
I'm not quite sure what you are implying. Perhaps a full valuation will take into account the granny flat.
Personally, to me, I feel that it is a small success.
