Did anyone built a granny flat in SA?

[Daniel121]

Hi guys,

Did anyone built a granny flat in SA? If so, I would like to hear your experience and any advice for someone thinking to go this path?

I understand it's probably not a great idea in SA, consider the relatively lower rental return here and going to spend around the same building cost as those who build in NSW, but still want to hear from someone did that in SA for my reference.

The main reason of thinking GF was due to my financial position where I need better cash flow (CG isn't a high priority in my circumstances atm), and subdivision and development seems a bit out of my reach (trying to start from small at my early stage of investment journey).

Cheers,
Dan

 

[Mick C]

Hi guys,

Did anyone built a granny flat in SA? If so, I would like to hear your experience and any advice for someone thinking to go this path?

I understand it's probably not a great idea in SA, consider the relatively lower rental return here and going to spend around the same building cost as those who build in NSW, but still want to hear from someone did that in SA for my reference.

The main reason of thinking GF was due to my financial position where I need better cash flow (CG isn't a high priority in my circumstances atm), and subdivision and development seems a bit out of my reach (trying to start from small at my early stage of investment journey).

Cheers,
Dan

Have you consider buying low-end properties with good cash flow from day 1, rather then GF...as you mentioned the built cost - rent ratio in SA generally is quite poor...given the lower average prices of unit/houses in SA compared to another state...

Also if you bought a property rather then spend cash on the GF, you will be in a better position to leverage from the bank's loan rather then using your own cash/equity.

I don't know the SA area that well, but some of my clients have bought in the following area with excellent rental cash flow

-Whyalla Norrie (~$220k)
-Elizabeth South ( ~150k)
-Pooraka ( ~200k)
- Gilles Plains ( ~230k)

Do some research and due diligence...and work with the numbers and how that property fits with your overall strategy, cash flow, and cash reserve.

Regards
Michael

 

[jim1964]

Have you consider buying low-end properties with good cash flow from day 1

I built a GF on my PPOR back in 2002.I wouldnt do it again as per the post above,it is very true and has been our strategy now for the last 6 years,and works a treat.

 

[Daniel121]

Thanks Mike for the advice, yeah, I'm also doing research in the low-end properties as well.

Thanks Jim for sharing your experience.

 

[Erica]

I looked into new granny flat build in SA a couple of years back, the rules required it to be attached to the existing dwelling with access via doorway from the main house (Onkaparinga council), so not particuarly desirable for tennanting if you don't live in it yourself, so the requirements in our state were a lot different to other states then, not sure if rules changed since?

Maybe talk to the concil in which you are investigating to find out the current policy and guidelines, I'd be interested to know too.....

 

[Daniel121]

Hi Erica,

As GF doesn't seems to be a good way to go (yet, may be things will change), I'm unlikely to investigate further.

In regards to GF has to be attached or not, it does look like some councils here allow separate GF to be built, provided it was intended to be occupied by relatives of people occupy the main dwelling when the development application is submitted. E.g.: City of Marion
http://www.marion.sa.gov.au/webdata/resources/files/Brochure_-_Dependant_Accomodation_(Granny_Flats).pdf

Cheers,
Dan