Granny flat planning

[menty]

I am planning to build a granny flat at the rear of my property, and am having trouble determining the feasibility of such a task.

Currently, the property is as follows

House on 700m2 land, with a large rear yard. Driveway down the side, leading to a carport, and a shed behind.

My intention is to build a granny flat at the rear, separating the 2 properties with a fence to create privacy. It would be nice if the could be a driveway access too.

As you can see, the current driveway would need to be extended to the rear. I would probably want to re concrete the whole section, but am not sure how much it would cost. The carport would have to be shifted to behind the rear of the house (would I need council approval?)

So the first question is, how feasible would this be?


My second question is in relation to when I should start organising building. Should I take out a loan for this, or use my savings/ equity?
I am currently living in the house as a first home buyer, but after the 6 months is up, it will be rented out.

Do I start construction now while I am living at the house, or wait until I have some 'income' from rent? When do I tell a quantity surveyor to come?

Thanks in advance!

 

[Aaron_C]

Concreting a driveway will probably cost $45 per sqm at least. You would probably need council approval for shifting any part of your building.

As for a building loan - you can get finance to build a granny flat. Your current lender may allow you to do a 'top up' on your existing loan if you can demonstrate that your renovation/construction will add value to the property (backed up by a valuation). Otherwise, you could refinance your loan to a new lender who will fund the construction for you. Always best to use borrowings if you can.

Third, why do you need a quantity surveyor now? You can just get a fixed price contract from a builder. A QS is only useful for big jobs. Whether you commence works while you are living there is up to you...

 

[Ocean Architect]

Hi You seem to be a little inexperienced, so forgive me if I repeat things you already know

The first thing to do is get in touch with your local council and chat with a planner. Building or extending dwellings isn't as straightforward as you might think. Before you can build anything of that magnitude, you need planning approval from council. Council relies on the planning scheme in your area to determine if your plan is okay. Things included in the planning scheme are such things as building heights, building boundaries, bin areas, carparking etc etc.

You could go to a professional planner/architect to do all of that on your behalf and design a structure that will be approved, but in my opinion that is money wasted and you may as well do it yourself, since granny flats are about as easy as you can get.

I wont talk about finance since Aaron_C is much better at that than I am.

Quantity surveyors are a type of building estimator that must be used with very large jobs (eg building a large shopping centre) - jobs that are so big that you calculate payment based on how many cubic metres of concrete/tonnes of steel are used, rather than an easy to understand portion of work being completed.

In small jobs like yours, payments are made based on whatever agreement you have with your builder. Usually that agreement will be something like X% deposit to start the work, then $X when the slab is poured, then $X when the walls are up etc. in a progress payment schedule.

 

[Rolf Latham]

Granny may not be easy to finance

Hi Menty

Finance may be more an important consideration for you than you believe.


Depending on the locn, the granny probably wont add to the TARGET ON COMPLETION valuation $ for $.

Our current experience is if the granny costs approx 100 k to get to completion, the reval adds between 50 to 70 k if the property is in the 280 to 400 price range...............but heaps depends on what where and how etc .

While this may not look like much of an issue because typically they add 50 % or more to the income, the financial feaso of actually getting it built can be an issue.

If you do need finance and the cost is 100k , yet the granny only adds 70 k, this means you need to tip in 44 k on an 80 % lend basis.

Note also, that some lenders will only allow a max 70 % LVR for more than one dwelling (eg ANZ and Suncorp) and some wont allow LMI unless the dewlling is attached, meaning you are stuck with an 80 % lend ( eg WBC and poss STG).

This means if you are currently with one of those lenders ( there are others with granny issues !) , and didnt cover this need with your broker / banker before approval, then thats one area I would double check straight up.

Just some things for you and many of the granny brigade to think about

ta
rolf

 

[Propertunity]

It would be nice if the could be a driveway access too.

Nice, but not necessary.

I would probably want to re concrete the whole section, but am not sure how much it would cost.

Neither am I - as there are no dimensions on the plan

The carport would have to be shifted to behind the rear of the house (would I need council approval?)

Probably can be done under a complying development in NSW.

The granny flat can also be done as a complying development - and you can therefore use a Private Certifier and not go near a council for approval.

So the first question is, how feasible would this be?

Very feasible for rental yield. Not greatly feasible for CG. Technically feasible if you are building clear of any easments (sewer & water).

Should I take out a loan for this, or use my savings/ equity?

From what the MBs have said, it looks like you might need all 3!

Do I start construction now while I am living at the house, or wait until I have some 'income' from rent?

No difference from a taxation perspective.
From a logistical perspective, do it now, so that:
1. You can keep an eye on things
2. You don't have to annoy the tenants in the house with construction in the rear (and drop the rent to compensate etc)

When do I tell a quantity surveyor to come?

When all the works are done.

 

[Ideo]

Propertunity has already said it.

Moving the carport can be done as complying development - depending on the size and location you can potentially get away with doing it as exempt development, but it would be neater to just tie it up into the one Complying Development Certificate.

Don't talk to a council planner. In all honesty they will tell you to lodge a DA so they can take the DA fees off you. They won't tell you what is best for you. Just what is best for them. Talk to a private certifier instead.

 

[knightm]

And don't forget drainage. Does your block sit above the street or slope down from it? If so you need to get the stormwater off the GF roof into an easement somewhere or develop another solution (rubble pits etc).

Most of the rules are defined in the affordable housing sepp but some flexibility can be found (at additional cost) if you go through council. The sepp is cheaper and faster from what I have heard if your block complies. I think this is the correct version of the sepp but others can correct me if I am wrong.

Have a search of the forum for previous granny flat threads as there are lots of them and some very knowledgable people who specialise in this area. Brazen (is one who does these all the time and has good reviews. (I get no kickbacks I just wanted to plug coz I have already asked Brazen so many annoying questions myself)

 

[menty]

Thanks for all the help guys

I Really wanted to know the steps that I should take, as it would streamline things a bit more.

So I guess it will be the following

1. Move carport under copying development
2. Speak to private certifier
3. Borrow as much as I can from the bank and supplement the rest with my own money

Build granny flat!

 

[Ocean Architect]

Don't talk to a council planner. In all honesty they will tell you to lodge a DA so they can take the DA fees off you. They won't tell you what is best for you. Just what is best for them. Talk to a private certifier instead.

Not in my experience (which is extensive).

 

[Ideo]

Not in my experience (which is extensive).

Not when it comes to complying development. There is huge council opposition to it in nsw. They generally will not inform people about it and insist on a da.

I deal with council in a daily basis.

 

[Ocean Architect]

Not when it comes to complying development. There is huge council opposition to it in nsw. They generally will not inform people about it and insist on a da.

I deal with council in a daily basis.

Fair enough. I am in the NT though. Perhaps things are different there.

 

[undercover]

Most Planning Schemes (VIC) require the person living in the Granny Flat to be a 'dependable person' on the person in the main dwelling.

If you plan on just renting it (to the public) as a second dwelling you will need a planning permit for an additional dwelling.

 

[Ideo]

Fair enough. I am in the NT though. Perhaps things are different there.

If you are lodging a DA they are helpful. Sometimes.

The issue is that the complying development controls are a state government EPI. They feel as if they have been essentially overruled and haven't had a say.

Which they haven't. Because the ones complaining are the ones that try every trick under the sun to stop development if one person complains.

It's the mid ring Sydney councils that are the worst for it. Ku-ring-gai and places like that. Just painful.

You go up the coast to port macquarie and Council is helpful.

It's just a turf war. For all the last ALP governments faults, at least exempt and complying development is a success. It is needed to actually allow people to do minor things around the house. Things that councils routinely took 200+ days to assess.

 

[Ideo]

Most Planning Schemes (VIC) require the person living in the Granny Flat to be a 'dependable person' on the person in the main dwelling.

If you plan on just renting it (to the public) as a second dwelling you will need a planning permit for an additional dwelling.

Yeah, but the OP is in NSW so that doesn't apply to him.

Town planning legislation is state, and often local government, specific.

Just because x applies in one area doesn't mean it applies in another.

 

[undercover]

Yeah, but the OP is in NSW so that doesn't apply to him.

Town planning legislation is state, and often local government, specific.

Just because x applies in one area doesn't mean it applies in another.

How would you classify this as an exempt development?

 

[Ideo]

How would you classify this as an exempt development?

The carport may be. Dependent on size.

The granny flat is complying development. Meaning you can get an approval outside of the traditional council path. It does not matter who is living in the structure.

 

[Ocean Architect]

If you are lodging a DA they are helpful. Sometimes.

The issue is that the complying development controls are a state government EPI. They feel as if they have been essentially overruled and haven't had a say.

Which they haven't. Because the ones complaining are the ones that try every trick under the sun to stop development if one person complains.

It's the mid ring Sydney councils that are the worst for it. Ku-ring-gai and places like that. Just painful.

You go up the coast to port macquarie and Council is helpful.

It's just a turf war. For all the last ALP governments faults, at least exempt and complying development is a success. It is needed to actually allow people to do minor things around the house. Things that councils routinely took 200+ days to assess.

The way it works in the NT is that you do not apply to council, you apply to building assessment services (BSS). If the development is major, building assessment services must present it to the development consent authority (DCA). The BSS is a government body. The DCA is not.

Things like carports etc do not require the BSS or DCA - you can do that right out of the building board.

In order of unhelpfulness, it goes building board < BSS < DCA.

BSS is helpful, cos they don't care. DCA people need a bullet.

Seems like the southern system is more problematic, to me

 

[sammy1]

Concrete will cost you around $60 per sqm,(minimum 80 squares).

 

[Ocean Architect]

Concrete will cost you around $60 per sqm,(minimum 80 squares).

Except in the NT. Then it'll cost you $110 per sqm. Southerners have it good, man

 

[brazen]

Wow cool thread, right down my alley..dam I missed it!

To the OP's questions:

1. 700 sq m block sounds wonderful for granny flat development. If the width of the block is around 12-15m, great, great. If it slopes (falls) towards the street, better still. If no, usually no biggie with a block this large, just leave enough room for a competent designer/drafty/architect to design an adequate (and cheap)dispersion system for the granny flat's roof-water.

2. Moving the carport CAN be Exempt Development if its 20 sq m or smaller (NSW).

3. Re-concreting the entire pseudo 'battle-axe' might be too $$. Consider gravel (if its quite flat) and there's some lovely colourful crushed granites out there, which are much cheaper than concrete.

4. The last part of your question relates to your personal budget and financial planning, which I personally would never purport to know anything about.

Cheers,

Brazen.