Can you build a duplex granny flat?

N

newstar

Dear all,

Currently planning to build a granny flat in area governed by Auburn Council in Sydney and I came across an interesting and possibly better investment return - duplex of granny flat! I have attached a floor plan for everyone to see. It is 60 sqm. The granny flat builder claims if your land suffice granny flat requirements, they can get this floor plan approved by the council.:rolleyes:

I rang another builder which has been building grannies for 25yrs and told me this is not possible as Council only allows a single dwelling structure to be build as a granny flat.

Question:
1. Does any expert know if its possible to build a council approved duplex granny flat such as the attached floor plan?

2. If above is possible, what are the regulations such as fire prove for the common wall etc around duplex grannies?

Cheers.:)
 

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You are allowed one secondary structure.

Besides what kind of market are you hoping to target with that?
Its not like auburn has universities nearby that you can market these properties to.

Better off going 2 bedder and renting out to a young couple / young family.
 
Thanks Nek. I thought so you can only build one single dwelling. I was surprised this builder promise it can be approved by the council though?

In terms of target market - my thoughts are this: if you build a 2 bedder granny without a garage (my land can't fit a garage for the granny due to frontage limitation), you are competing with many 2bedder apartments less than 500m from the station with 1. larger area, 2. parking space and 3. better location (my house is about 1km to station). So you can really only compete on price. Say if the 2bedder apartment near station ask $450, I will ask $350-$400.

However, the area I am in currently doesn't have any 1 bedder or studio for rent which I assume indicates lack of supply for 1bedder. I am pretty confident that a young couple or a single professional would be attracted to a 1 bedder granny because it is cheaper(rent say $300/wk *2 = $600), private and most importantly such 1 bedder can't be found closer to the station.

Of course, above is hypothetical because I am pretty sure duplex granny can't be done if it goes through proper approval process by council.
 
It can be built. It will be deemed as a secondary dwelling.

If you choose to rent it out to two parties independently, if one has a fire in the kitchen and injures the other, understand that insurance will not cover you as how you have rented out the property is illegal.

That said, people do things like this all the time.

For me, I intend on building my property portfolio. Shortcuts like this aren't worth the risk.
 
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2 kitchens will classify as 2 dwellings.

Based on zoning.. you may or may not get it thru...

I think it is almost no no!

However, there are always ways around to things ;)
 
newstar said:
In terms of target market - my thoughts are this: if you build a 2 bedder granny without a garage (my land can't fit a garage for the granny due to frontage limitation), you are competing with many 2bedder apartments less than 500m from the station with 1. larger area, 2. parking space and 3. better location (my house is about 1km to station).
Click to expand...

What % of people use their garage to put a car and what % park their car outside and stuff their garage full of crap?

Based on the answer above, does this mean a garage needs to actually be at the front. Why can't you build an additional dwelling next to the granny flat that can be used as storage?

So you can really only compete on price. Say if the 2bedder apartment near station ask $450, I will ask $350-$400.
Click to expand...

My opinion is to never compete on price. It only opens up the market to undesirable tenants.

However, the area I am in currently doesn't have any 1 bedder or studio for rent which I assume indicates lack of supply for 1bedder. I am pretty confident that a young couple or a single professional would be attracted to a 1 bedder granny because it is cheaper(rent say $300/wk *2 = $600), private and most importantly such 1 bedder can't be found closer to the station.
Click to expand...

Lack of supply or lack of demand?
I might add, why would a single professional be attracted to a 1 bedder granny flat that is 1km away from the station. Wouldn't this demographic be about convenience?
As for young couple, if a young couple were doing it save money why wouldn't they stay at home or just go for an older 2 bedder for $300?

When considering a granny flat build, understand your target market and build accordingly.

For all i know your points may be 100% correct, I'm just playing devils advocate - but research will help paint a clearer picture. Good luck!
 
mflying said:
2 kitchens will classify as 2 dwellings.

Based on zoning.. you may or may not get it thru...

I think it is almost no no!

However, there are always ways around to things ;)
Click to expand...

Could always try the "wet bar" approach if you really really want to . ;)
 
mflying said:
2 kitchens will classify as 2 dwellings.
Click to expand...

Where does it say that in the BCA??? :confused:

That design is ok, it should pass as a complying development. Builder should be able to install two sub boards for the electricity too so no problem splitting bills. Certifier might ask for a fire rated wall but that would be it.

Another option is to attach a "shed" and then fit it out later.
 
sometimes its difficult to balance the risk and return such as in this instance where a duplex granny clearly gives higher return. :)
 
Can I ask - have you considered what your long-term plan for this property (not just the granny flat - but all dwellings on your plot of land), is?

I ask because you need to consider/be conscious of the capital growth problems you may have by running three awkward dwellings all sharing the same land space, instead of just two.

I agree with others; a two-bedroom granny flat with garage would be a smarter move for Auburn than your proposed duplex granny flat. Am I correct in thinking that each of the two would then be 30sqm each? That is a very small space and your market may not desire this.

That said, if you are confident this strategy will work (I invest in nearby Granville, but I'm afraid I don't know the Auburn market very well); there are inventive ways to maximise 30sqm spaces (raised/floating beds; covertable/compactable wall-mounted dining tables etc).

Good luck and let us know what you decide to do!

Would love to see pictures once it gets underway also!
 
To be honest, I am not sure how having a duplex granny will adversely affect your capital growth for the main property. Worst case scenario, knock out the middle wall dividing the living area and one kitchen so it becomes a 2 bed room granny? (I don't think its that difficult is it?)

My initial thought to build a duplex instead of a 2 bedroom is about competition. There will be more and more 2 bedroom new apartments being built around the station precinct, although more expensive in asking rent, I just can't justify why I would rent in someone's backyard if I can pay little bit extra for a modern 2 bedroom apartment located lot more closer to transport, shopping, restaurant etc. But having a duplex, say one ask $300, is still okay to be accepted by a young couple or single person where you will have your own private accommodation but not as expensive as those modern apartments near the station area.

That is my understanding, open to your feedback. :)
 
newstar said:
I just can't justify why I would rent in someone's backyard if I can pay little bit extra for a modern 2 bedroom apartment located lot more closer to transport, shopping, restaurant etc. But having a duplex, say one ask $300, is still okay to be accepted by a young couple or single person where you will have your own private accommodation but not as expensive as those modern apartments near the station area.

That is my understanding, open to your feedback. :)
Click to expand...
I can't justify why someone would want to pay so much money to be sandwiched between other people. But each to their own i guess.

That said, I also can't see why someone would pay $300 to live in a 30 sqm studio that is more than 5min walk to the train station.

You should try and conduct survey to see how many people are actually interested in the type of dwelling you're planning to build.
 
All good questions but I do 3 bedroom 'student-style' granny flats all the time. They ALL have a common denominator - they are targeted at Uni Students.

Most Uni's charge around $300 a week for a dorm unit.


My client gets 3x students at $280 each and gross $740 a week! That's $38,000 a year. He'll pay it off in 3 years and then pocket $800 a week. Forever. Not bad.

Now, it's really only very good near universities.

Here are the Uni's we've done them near (in order of numbers done):
1. Macquarie Uni. Lots of Chinese students.
2. Milperra (UWS) Uni
3. Campbelltown (UWS) Uni
4. UTS Sydney
5. Ku-Ring-Gai Uni
6. Wollongong Uni

Most clients add additional 'awnings', 'patios' and sometimes a shed - just for extra storage space of course.

Brazen.
 
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