house valuations 3 living areas

[Barney118]

Hi,

I just had a house valuation for my PPOR where I am undergoing renovations, I have upstairs and downstairs to be, also a free standing garage (own access ie 2 street frontage) which will have a bathroom. The valuer mentioned they wouldnt touch it (the bank) if I were to put a kitchenette in the garage as it would give potential for 3 living areas you could close off and rent them all out STCA, which wouldnt be allowed. Has anyone heard of this? this potentially ruins plans of making the garage a granny flat at a future date.

rgds

DJ

 

[A Jeremy]

Maybe put the kitchenette in after the valuation.

 

[Aaron_C]

Yes the issue is because the smart-*** valuer will say 'oh this property can be used for student accommodation' or words to that effect. Guess what? Credit assessor reads that comment in the report, now your property is a 'specialised security' and your finance is stuffed. If you must do the kitchen, do it after the val...

 

[neK]

Aaron, how does this affect approved granny flats (in NSW) that are leased to unrelated tenants?

 

[Aaron_C]

Granny flats are a bit different because it's considered 2 dwellings on one title which is not the best security but acceptable for most. It's when your property is set up like an accommodation business that it becomes a big issue, hence the 'specialised security'.

 

[Barney118]

So if I had the property approved for a granny flat then the same applies you could rent out the top of the house the bottom of the house and granny flat, in my eyes I have a 2 storey house and granny flat they separate them into the specialized category still? what so you mean not the best security? so Im better off having a garage rather than a granny flat doesnt seem to be logical.
So this would apply to any 2 storey house and granny flat on the same block.

 

[rohan22no]

Will a valuer even go in the Garage? Do you need to tell them about it?

If yes, why not just pile up a bunch of sheets/mattresses or whatever in front of the kitchen and make it look garage-ish?

 

[Barney118]

I haven't built the garage yet but I was considering putting in plumbing for a stand alone sink where with approval convert to a granny flat down the track. So a install of kitchenette would be simple, but he told me of the bank rule of having 3 living areas could be too much risk for the bank, I can't see the risk.