Any granny flat success stories?

[Jacque]

We've had some great successes with clients over the years with g/flat setups however obviously with increasing price growth yields aren't as good as they have been.

Good example was just over 15mths ago we paid $470K for a 3 bd house and (fully approved) separate 2 bd g/flat (with own separate street entrance which was an added bonus) that was yielding $620 p/wk. Same setup today worth $630-650K in today's dollars and would yield only slightly more at approx $650 p/wk. This recent sale classic example of what you'd be paying in the same area http://www.realestate.com.au/property-house-nsw-marayong-117563503

 

[Radicals]

This recent sale classic example of what you'd be paying in the same area http://www.realestate.com.au/property-house-nsw-marayong-117563503

Nice granny flat!

 

[paul81]

Purchased 2 br house on a 900sm block for 400k in 2012 at Blacktown. built 2 br brick veneer granny flat in the back yard for $100k

combined income currently $780pw
current valuation 650k

my only concern was if the tenants would get along, even though only thing they share is driveway. Lucky for me tenants are related and have been great.

i would do it again but as someone mentioned, finding a suitable property at the right price these days is very hard, especially in Sydney (imo)

 

[Radicals]

Well on the note of "getting along";

I contacted Logan city council and just learned that if I were to buy a place there, and build a granny flat, I couldn't have non-related people (to the main residence) renting it out

This is apparently dual-occupancy, and requires all sorts of approvals. I'm kind of disappointed, but I'm assuming most places would be improved by adding a granny flat, where yard size is not such an issue.

 

[neK]

Purchased 2 br house on a 900sm block for 400k in 2012 at Blacktown. built 2 br brick veneer granny flat in the back yard for $100k

combined income currently $780pw
current valuation 650k

my only concern was if the tenants would get along, even though only thing they share is driveway. Lucky for me tenants are related and have been great.

i would do it again but as someone mentioned, finding a suitable property at the right price these days is very hard, especially in Sydney (imo)

Paul, can i ask why you opted for brick veneer as opposed to cladding?
With Brick Veneer you lose around 5-6 sqm... on a granny flat that has a max of 60sqm, thats actually quite large.

I know the vinyl cladding isn't the most appealing, but there are nicer cladding options out there. Scyon Stria (looks great with narrow tall windows at the front IMO), hardiplank (gives it a nice weatherboard look), etc.

 

[Peter Parker]

Are there enough grannies out there for all these granny flats ?
I prefer to keep my huge backyard.

We're an ageing population.

Women are often younger than the men they marry and typically outlive them.

A ground level granny flat is superior to an apartment or townhouse with stairs for older people.

Younger retirees who own their own home may be concerned with their retirement income. Having a granny flat sublet to an older tenant might be a way to supplement the pension/superannuation.

Well designed granny flats in handy locations should be a boom market.

 

[paul81]

Paul, can i ask why you opted for brick veneer as opposed to cladding?
With Brick Veneer you lose around 5-6 sqm... on a granny flat that has a max of 60sqm, thats actually quite large.

I know the vinyl cladding isn't the most appealing, but there are nicer cladding options out there. Scyon Stria (looks great with narrow tall windows at the front IMO), hardiplank (gives it a nice weatherboard look), etc.

neK, initially i wanted cladding for reasons you stated and also to match house at the front but i came across a builder who was able to do brick veneer for 92k (other builders quoting much higher for clading)

Not only that, somehow my draftsman managed to increase the size of the building an extra 5sqm (approved by council). Also i figured that valuation would be higher as brick veneer?

 

[Scott No Mates]

Here's one that granny lives in. Just off the main street in Echuca.

 

[albanga]

Not sure if this counts but my wife and I found a couple in aireys inlet who built a granny flat and rent it out per night for $140. It's also pet friendly which is great. When they first did this we stayed a few times but now it's almost always booked out.

I know this is a bit different but it is a great idea and they would on average probably rent it out three times a week with slower winter periods and long stays over summer.

 

[ahprop]

Teenage Retreat without council approval in 2A residential allowing dual occupancy

Hi, I would like to seek some advice regarding a house I recently purchased in Padstow, 3 bed, 2 bath,1 garage which has been converted into 1bedroom teenage retreat (1living, 1 bed and 1 shower toilet (small sink in the living room with small rangehood but no stove). This teenage retreat has no council approval.
It seems it fullfilled the standard requirment of the 2.4m height and the 900mm both side and back gap, the access to the garage is from the side of the property only (Corner block 544sqm). Questions:
1.I understand that conductiong private certifier would be much easier, how can I get Private certifier? I meant what exactly business category this private certifier is in? And once they certify it, how can I use it to gain council?s approval?
2. Should I get into council approval process, Would it be possible to convert it into 2 bed granny flat?
3.. What?s the difference between teenage retreat and granny flat from council?s perspective? is the kitchen the difference between those two? My teenage retreat has shower and toilet, can it still be considered as teenage retreat? IF I keep it as a teenage retreat, Do I need to obtain council approval (As there are plumbing and drainage installed)?
Thanks so much,

 

[RetireRich101]

Hi, I would like to seek some advice regarding a house I recently purchased in Padstow, 3 bed, 2 bath,1 garage which has been converted into 1bedroom teenage retreat (1living, 1 bed and 1 shower toilet (small sink in the living room with small rangehood but no stove). This teenage retreat has no council approval.
It seems it fullfilled the standard requirment of the 2.4m height and the 900mm both side and back gap, the access to the garage is from the side of the property only (Corner block 544sqm). Questions:
1.I understand that conductiong private certifier would be much easier, how can I get Private certifier? I meant what exactly business category this private certifier is in? And once they certify it, how can I use it to gain council?s approval?
2. Should I get into council approval process, Would it be possible to convert it into 2 bed granny flat?
3.. What?s the difference between teenage retreat and granny flat from council?s perspective? is the kitchen the difference between those two? My teenage retreat has shower and toilet, can it still be considered as teenage retreat? IF I keep it as a teenage retreat, Do I need to obtain council approval (As there are plumbing and drainage installed)?
Thanks so much,

Here are my concerns for a teenage retreat that is not council approved, and trying to get it approved:

1. You can go to council to get the retreat approved.
2. if you want to rent the retreat out separately, you need further approval via SEPP as secondary dwelling aka granny flat.
3. you can nominate either Council or Private Certify as your Principle Certify Authority (PCA)
4. Going council may take longer process for the approval,.
5. If not council approved, it means you need certify or show prove of the following BEFORE it can be approved as a retreat:
a. wet area proofing to bathroom
b. termite
c. engineering certificate for concrete floor.
d. basix certificate, meaning insulation, water, lighting,

often the above requirement add some considerable cost. you need the above to get Occupancy Certificate.

Getting an OC, doesn't mean you can automatically rent the retreat to another unrelated person. It means you can put your friends/relative sleeping there. You need the retreat approved under SEPP as seondary dwelling/GF.. For this to happen you need to pay Council S94 contribution fee

If you dont have any approval paperwork in council archive, I would assume previous owner put at own will.

 

[nhg]

Here are my concerns for a teenage retreat that is not council approved, and trying to get it approved:

1. You can go to council to get the retreat approved.
2. if you want to rent the retreat out separately, you need further approval via SEPP as secondary dwelling aka granny flat.
3. you can nominate either Council or Private Certify as your Principle Certify Authority (PCA)
4. Going council may take longer process for the approval,.
5. If not council approved, it means you need certify or show prove of the following BEFORE it can be approved as a retreat:
a. wet area proofing to bathroom
b. termite
c. engineering certificate for concrete floor.
d. basix certificate, meaning insulation, water, lighting,

often the above requirement add some considerable cost. you need the above to get Occupancy Certificate.

Getting an OC, doesn't mean you can automatically rent the retreat to another unrelated person. It means you can put your friends/relative sleeping there. You need the retreat approved under SEPP as seondary dwelling/GF.. For this to happen you need to pay Council S94 contribution fee

If you dont have any approval paperwork in council archive, I would assume previous owner put at own will.

Not that I openly condone this, but if you are familiar with the council regulations and building requirements, it is actually IMO cheaper and easier to build it and have it retrospectively approved than it is to go down the legal route.

I stress the importance of knowing your codes and having plenty of documentation, the biggies are slab and water proofing, hard to prove without photos and professional certification.

I have built granny flats, good returns, but the trade off is in the revaluation as mentioned previously. Not worth it unless you bought the house at great value to start with, wouldn't want to do it unless it brings back the ROI to 9-10% minimum.

 

[skater]

Look up Brazen, on the forum. He will let you know if it can/can not be approved, and what needs to be done.

 

[ahprop]

Teenage Retreat without council approval in 2A residential allowing dual occupancy

Thank you everyone for all the precious advice. Checking google map and it seems that I won't be able to get approval, knowing the teenage retreat seems to be very close to the edge. I dont have the actual measurement but looking at the picture, I dont think it has 900mm gap.
While about the quality itself, as the vendor built it for his son, so quality looks good and properly build. Shower and toilet looks properly installed. The height requirement 2.4 m seems to be okay. The issues now would be the side and rear 900mm requirement.
Not sure if there's any other option to solve this.

If all the required water proofing, plumbing, height etc as standard, then Private certifier could certify the teenage retreat for personal use (correct me if not right). However, as teenage retreat, I would then unable to install kitchen,right? just a wet bar.

Then, IF I want to propose the changes to be granny flat (with the gap to neighbour seems to be less than 900mm), Would there be any other option?
It will be a very sad news if It can't be approved as granny flat or at least keep it as teenage retreat because the quality of the teenage retreat looks very good and modern (1 living room, 1 bedroom with proper shower and toilet)
Thank you so much for any advice/way out..

 

[nhg]

It's free to have someone take a look at it.
I had a similar concern. I could put fire proofing to meet council requirements, fortunately during the survey it turned out the neighbours fence was a touch too close so it meant it was actually legal.

My guy is Ashwin: 0418 752 154.
He's done all of mates and my granny flat approvals (there were some tricky ones in there).

If you do give him a yell, may you please tell him Navid recommended him if you wouldn't mind.

Thanks.

 

[Tonibell]

Then, IF I want to propose the changes to be granny flat (with the gap to neighbour seems to be less than 900mm), Would there be any other option?
It will be a very sad news if It can't be approved as granny flat or at least keep it as teenage retreat because the quality of the teenage retreat looks very good and modern (1 living room, 1 bedroom with proper shower and toilet)
Thank you so much for any advice/way out..

That looks like a great property for a granny flat and the garage is in the right spot. You would need a survey about the 900mm - it is measured from the outer walls of the garage, not the eaves. You might be OK.

You would only go through certification if you wanted to rent it out - or if council approached you for whatever reason. I can't imagine anyone being concerned about it being used as a teenage retreat.

 

[Greenjoy3001]

I purchased a house (619sqm land size) in St Marys in March 2013 for 311K (+10K buyer agent fee) and then built a 2 bedroom GF for approx $130K inclusive of everything (council fees, landscaping, fencing, concrete footpath, concrete drive bay for front house, upgrade of electrical supply, etc).

The front house and GF rent for $360 and $340 respectively. A valuation done in Feb 2014 came back at $420K, with the increase being part due to GF build, but also to some healthy growth in 2013-2014.

All in all, for a novice investor, I'm pretty pleased with the result.

 

[ahprop]

Thank you all,

Tonibell...Unfortunately, I've just visited the property and found out that the rear gap to the neighbour's fence is just 40 cm. So, I dont think I can apply for Granny flat approval. Not sure if there's any other way. A very sad news indeed...

Have a great weekend all..

 

[RetireRich101]

Thank you all,

Tonibell...Unfortunately, I've just visited the property and found out that the rear gap to the neighbour's fence is just 40 cm. So, I dont think I can apply for Granny flat approval. Not sure if there's any other way. A very sad news indeed...

Have a great weekend all..

It's possible for an existing outbuilding conversion that has <900mm set up. New build can not.

For 400mm you will need to fire rate the wall and the eaves.

It's not an official guide, but see here, point 1

http://www.grannyflatapprovals.com.au/garage-conversion-guide

 

[somer_hut]

hi all,

quick update and thanks to all forum members so far.

i built granny flat in my prop in blacktown. i never thought i would do on when i bought the place, as it has pool, sewer encasement and even some demo....

but in short. its all finished and it costed me roughly 145k turn key, demolition, sewer encasement, built, council fees, approvals, fencing...and good specs like AC, stone benchtop, full tiling to bathroom etc.

even earlier in the year, i had a choice not to proceed with built and go buy another IP.

im happy did not do that, as it would stretched my self, with job uncertainty.

it has been rented for 390 per week, including water usage. i am managing the property myself... that was some work and would not do it everything. but have a good professional couple in there...so fingers crossed.


i am happy with it, as this will help me to actually hold onto this property when i move from it now or in 2-3 years time...

purchased for 435k and 15 k stamp duty in 2012
145 for granny flat.


GF renting for 390 per week. the house should rent for 480 to 500 per week.

similar couple of homes with granny flat have sold for around 800k. in similar location....

somerhut