Granny Flat/Development Story

[rohan22no]

Hi All,
Some may remember my few posts from late last year and earlier - I expressed interest in developing on my land in Belconnen, ACT (See thread below)

http://somersoft.com/forums/showthread.php?p=832668#post832668

Well, its done. After roughly 12 months of procrastination and then about 6 months of actually taking action, I've completed what I set out to do with the place. I'm just wishing I did it when I first bought the place (2009)! I dont know why I put it off so long.

Anyway, rough summary of what I've done to my PPOR (which is also the house i share/rent rooms to friends) since about August last year (all on the same block btw)

- Converted my existing and almost unused games room to an extra bedroom + small living room. Total cost 27k - renting currently for $280/pw

- Constructed another 2 bedroom unit (technically an extension) out the back of my PPOR. - Total cost 115k - renting currently for $390/pw

Before all this - I was receiving $450/pw from my PPOR as I share with 3 friends who pay me $150/pw each. Mortgage of about 200k (house value maybe 450k).

As of now, my mortgage is about 320k (redrew 120k for developments) and I'm receiving $1120 p/w rent or thereabouts. Obviously my bills have gone through the roof as I'm now "sharing" with 6 people instead of 3, but after all expenses I'm still easily clearing $350-$400/pw positive cashflow.

I made mistakes along the way, paid for things I shouldn't have, got bad tradies, got good ones, managed things myself, ****ed things up myself, did some things right and some things wrong! All in all I am very happy with the result, as my previously almost unused backyard is now earning me a significant amount of rental income. Anyway, I'm not here (just) to brag, I want to share my experiences.

I want to give a bit back to the community as it was the Somersoft forums that gave me my initial contacts and got the ball rolling. I think I can give a bit back to the forum and am available to help, and share experiences with anyone who is endeavoring to take on a similar project (especially in the ACT as we have our own strange laws here). Ask me anything you want to know either in the public forums or by PM.

Thanks!
R

 

[virgo]

Games Room

Hi Rohan


Great job! Just go to show you have to think outside the square eh?

Just curious what you spent the 27K on? Does that include a bathroom and toilet and/or kitchen? is it completely independent of main house with its own entry?

Do you have to get council approval? How is the rental arranged?

thanks

 

[virgo]

Games Room

Oh..and how big is it?

 

[rohan22no]

Hi Virgo,
thanks for the reply. It is at the rear of the house, has its own entrance, I basically put up walls inside, and yes a small amount of plumbing work to get a kitchen and bathroom installed - all fully approved. Inside (its a small bedroom, living/kitchenette area, bathroom) is maybe 45sqm. I just told one of my friends about it who I thought might be interested, and they pay me the rent. Since I live in the house myself and live with friends, I've never had to worry about leases or bond or anything like that.

the $27k (28.5k now actually i look closely) went to...

8k roughly to builder - putting up internal walls (as in proper fire-grade ones), putting in insulation, framing, sheeting, plastering.
5k roughly to tiler to do the bathroom and around the kitchenette
5k all up for plumbing - doing kitchenette rough in, bathroom stuff, bathroom materials.
3-4k for electrical - installing air con, new switches and lights, exhaust fan for bathroom etc
the last 5k or so just on random stuff, lots of bunnings trips to pick up odds and ends, trips to the tip etc, new carpet, paint etc.

 

[virgo]

Games Room

hi Rohan

Well done I always thought council will not approve 2 kitchens under the same roof but maybe i will have to check it out

Have to be extra careful here if there is a fire as insurance will chew us up

Not a bad return at all

 

[rohan22no]

Hi Virgo,
are you from ACT?

And you are absolutely correct that council will not approve 2 kitchens under the same roof, that's why you have 1 kitchen, and 1 "bar area".

The definition of a kitchen (how they see it) is an area that has cooking facilities, i.e a stove. That's where the fire danger comes from and that's why its not allowed. I wouldn't recommend having a stove in your second kitchen (oops, i mean "bar area"), as it is a true hazard - but there's nothing stopping you from having a bench, fridge, a sink and a microwave.

 

[virgo]

Wet bar

Hi Rohan

yep! i thought you may have done that with a wet bar rather than a kitchenette....