Can I make any revenue out of this land at the back of this IP?

[James Bond]

Hi

At the back of one of my IPs there is a shed on a slab. This is a corner block, so separate access to the shed is available. I was thinking that at some point in the future I could add value by running a fence down the back of the house. This leaves a piece of land visible in the photo. I reckon there's a few options here -

- rent the shed out for storage (low cost, low yield)
- build something like a granny flat, not sure if I'd be allowed to
- leave it as is, maybe build 2 on the site in 15 years.

The yield on the house would not be affected by it losing the shed, IMO.

I'd be interested in any opinions.

There's a photo of the house from the rear here, this shows the shed -



Thanks for any advice

JB

 

[tobe]

ok, so who is your tenant market? What are you looking for?

the local jims mowing franchise?

teenagers who need a hideout?

band practice?

storage?

 

[James Bond]

ok, so who is your tenant market? What are you looking for?

the local jims mowing franchise?

teenagers who need a hideout?

band practice?

storage?

If I kept the shed there it would be storage. Not sure the front tenant would appreciate band practice!

JB

 

[tobe]

so what do storage sheds rent for in the area? Yours would attract a discount as perhaps its not as weatherproof, or as secure.

Might not be worth the trouble.

 

[rohan22no]

Not much if any value in the shed yield wise, you might get 50 bucks a week storage for it, bleh. You might as well use it for storage yourself?

Alternatively, tear it down and build a simple granny flat/extension (check legalities etc with a local building certifier - they know how to bend the rules). Chuck up a simple fence in between the dwellings and there you go, $200+ return, you're on a corner block so its ideal...look forward to seeing what you do with it!

 

[James Bond]

tear it down and build a simple granny flat/extension (check legalities etc with a local building certifier - they know how to bend the rules). Chuck up a simple fence in between the dwellings and there you go, $200+ return, you're on a corner block so its ideal...look forward to seeing what you do with it!

That's what I was thinking of doing with it.... have to check as to whether the land is big enough and whether the access would be an issue, as it is physically present but not currently legal....

Hmmmm..... the Granny flat might become my next IP.....

JB

 

[rohan22no]

In my relatively short investing experiences, by FAR the most profitable venture so far has been developing a granny flat. Awesome tenants (young couple and their 2yo) paying me $390 per week rent for 125k outlay. I've written about it in some of my other posts, and happy to share any experiences if you're at all interested.

What state is your IP above in? How big is the house and what is the size of the block?

 

[James Bond]

In my relatively short investing experiences, by FAR the most profitable venture so far has been developing a granny flat. Awesome tenants (young couple and their 2yo) paying me $390 per week rent for 125k outlay. I've written about it in some of my other posts, and happy to share any experiences if you're at all interested.

What state is your IP above in? How big is the house and what is the size of the block?

Hi, the IP is in VIC, the size of the block is I think from memory 550m2 and the house is a small 4 bed currently generating $380 per week revenue. I'm not sure of the exact square metreage of it. I would be very interested in building a granny flat here, I have no idea how easy this is in VIC?

Thanks for any advice

JB

 

[DaveM]

Garden sheds are so cheap why would anyone pay to rent on when they can stick one in their own yard?

If you have a strong tradie presence in the suburb, a better use may be a double garage with storage that a tradie can rent for vehicle and tool storage.

 

[westminster]

Jamesbond,
I suspect that there really is nothing much you can do with that area.
That is a garden shed - you might get storage rental if it was a garage or workshop sized shed.
I also don't think you have room for a GF even if it was allowed for non related parties.
That slope of your block could make building a GF quite expensive.
I don't think Victoria has caught up with the GF trends of other states yet.

 

[rohan22no]

Hi, the IP is in VIC, the size of the block is I think from memory 550m2 and the house is a small 4 bed currently generating $380 per week revenue. I'm not sure of the exact square metreage of it. I would be very interested in building a granny flat here, I have no idea how easy this is in VIC?

Thanks for any advice

JB

JB,
What about building an extension to the existing house (another 2 beds, living/kitchen and bathroom). About 50-60sqm in total, have another entrance at the other side of it. Design it so there's minimal/no contact with the main house, then just rent them out separately. Obviously I'm simplifying things here, but you see what I'm getting at.

like I said in my first post, your absolute best bet is to get a local building certifier around and say to them exactly what you want to do (i.e make more money from the property) and they will rattle off suggestions..they do this stuff all the time...

 

[cmlcas]

Re: your Central Coast IP

You can put a secondary dwelling on the Central Coast up to 60 sqm

Great way to increase your ROI by about 40%.

Min 450 m2 and 10 day comply developed through council.

If you need any help with this please contact me.

 

[rohan22no]

You can put a secondary dwelling on the Central Coast up to 60 sqm

Great way to increase your ROI by about 40%.

Min 450 m2 and 10 day comply developed through council.

If you need any help with this please contact me.

+1 to this...such a great deal...you're essentially getting 2 houses for the price of 1 (and a bit).

 

[James Bond]

You can put a secondary dwelling on the Central Coast up to 60 sqm

Great way to increase your ROI by about 40%.

Min 450 m2 and 10 day comply developed through council.

If you need any help with this please contact me.

Thanks for the advice.... this particular property is in VIC.

JB

 

[MelbInvestor]

Which municipality / suburb is this property in ?

 

[saiman]

+1 to this...such a great deal...you're essentially getting 2 houses for the price of 1 (and a bit).

just wait until you try and reval...

120k for a granny flat or deposits for 4 cashflow+ properties?

different folks different strokes i guess....

 

[PRO Victoria]

Hi, the IP is in VIC, the size of the block is I think from memory 550m2 and the house is a small 4 bed currently generating $380 per week revenue. I'm not sure of the exact square metreage of it. I would be very interested in building a granny flat here, I have no idea how easy this is in VIC?

Thanks for any advice

JB

Hi JB,

Granny flats in Victoria require a planning permit as with any second dwelling on a lot unless they are to be used as a Dependant Persons Unit. A DPU does not require a planning permit but must be a temporary structure and used by a dependant of the residents of the main dwelling.

Given that your site is located on a corner lot there is scope for the development of a second dwelling on the lot. However without site specifics I am unable to expand on this. If you want to PM the address I can have a look in more detail for you and respond with address identifying information removed.

Hope this helps.
David.

 

[James Bond]

Hi JB,

Granny flats in Victoria require a planning permit as with any second dwelling on a lot unless they are to be used as a Dependant Persons Unit. A DPU does not require a planning permit but must be a temporary structure and used by a dependant of the residents of the main dwelling.

Given that your site is located on a corner lot there is scope for the development of a second dwelling on the lot. However without site specifics I am unable to expand on this. If you want to PM the address I can have a look in more detail for you and respond with address identifying information removed.

Hope this helps.
David.

Hi David, thanks for your offer, I have PMd you.

JB

 

[PRO Victoria]

JB,

In my opinion, the available space to the rear will be too tight to fit in a second dwelling/granny flat that will comply with the local planning policies in particular POS and car parking.

I think the best option out of the three you listed in the original post, would be re-develop sometime in the future. The site (with the existing dwelling removed) is suitable for two dwellings.

David.

 

[James Bond]

JB,

In my opinion, the available space to the rear will be too tight to fit in a second dwelling/granny flat that will comply with the local planning policies in particular POS and car parking.

I think the best option out of the three you listed in the original post, would be re-develop sometime in the future. The site (with the existing dwelling removed) is suitable for two dwellings.

David.

Thank you David. The existing building is only about 7 years old so I reckon I'll leave it for a while!

JB