Has anyone revalued their property after adding a granny flat or converting a garage to access equity?
Here in Sydney, with rental returns being quite good, its simply impossible to lose value on a granny flat.
For example, a house worth say $400k. You add a granny flat that costs you say $60k. This will yield a rental return of about $300 p.w. It will take 4 years to pay off the investment from the rental income.
If you continued to rent the property out, you'd see a net rental income increase of say $12,000 per annum. That's $120,000 over the next decade; also great for offsetting the finance (if any) on the property.
If you decided to sell the property, you'd be looking at a price of around $500k for the entire property with the secondary dwelling. Dual Occ's are just very sought after by investors (especially on corner blocks). Either way you cant lose because you'll always see a profit from rent and also from capital growth if/when sold.
FYI, my accountant says to value the house before and after Granny Flat conversion for Capital Gains tax calculations further down the road should you sell....
hope this helps!
I'm planning to convert a double-length garage into a granny flat and will be taking your ideas on board about replacing it with a double carport.
Currently waiting on the survey and drawings.
Perhaps what Skater refers to is my belief that dual income properties tend to be over-priced in a stronger market. Therefore, in a slump it seems that their value drops considerabley when in reality, the Vendor paid too much for it in the first place.
Is there anyway you can extend the garage and still keep 1CAR at the front? I did this and converted the rear into an Office or outdoor BR. it was what I needed at the time.