Granny Flat or Unit

If you could only afford one of these what would you invest in? The granny flat will be in your own back yard. I am just curious as to what you would choose to do and what you would regard as a better first investment.

Granny Flat $90,000
Rent: $250 pw

Unit: $150,000
Rent: $265 pw
 
I'd choose the unit if you are looking to invest.

You may chew up your equity/cash if you do the GF first and be unable to move forward with an investment.

Down the track you could revisit the GF to help out with cash flow If needed. That's sorta what I have done.
 
leaving capital growth out of the decision, i would think the GF has better cash flow purpose.

GF is a new build so no stamp duty paid, depreciation benefits and no strata. When you factor these numbers in your xls it becomes bluntly obvious that GF has better cash flows....

However you may like to spread eggs in different basket, and release of asset would be easier for a unit, since you can't sell the GF from the main house.
 
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