loan structure for granny flat

Hi,

I'm looking to start in property. but it seems very hard without savings. So I decided to build a 2br granny flat at my backyard to get some cash flow. But I understand that I would be in trouble if I do not have the right loan structure in place. So I'd like to have your advice on the structure of the loan.

My situation is I've about 100k equity in my house. That loan is linked to an offset account which got my all savings around 40k.I'm looking at borrowing around 60 k for the granny flat. So what sort of loan structure should I use?

Thank you,
Jason
 
Hi,

I'm looking to start in property. but it seems very hard without savings. So I decided to build a 2br granny flat at my backyard to get some cash flow. But I understand that I would be in trouble if I do not have the right loan structure in place. So I'd like to have your advice on the structure of the loan.

My situation is I've about 100k equity in my house. That loan is linked to an offset account which got my all savings around 40k.I'm looking at borrowing around 60 k for the granny flat. So what sort of loan structure should I use?

Thank you,
Jason

Hey Jason,

Kudos to you! Not many people have the ability and then decide to simply build a granny flat onto their home and most don't think about the loan structure until it is too late.:D

Regards JO

I like your idea and am a big believer in dual incomes.
 
Thank you Rolf & Jo. I got lot of information by reading the forum. It was a big decision and a sacrifice to put the granny at the back yard. Try to minimise the interference of it with main. Will post my progress in future.


Jason
 
Thank you Rolf & Jo. I got lot of information by reading the forum. It was a big decision and a sacrifice to put the granny at the back yard. Try to minimise the interference of it with main. Will post my progress in future.


Jason

Well done ol' boy! Keep the momentum going!!
Maybe u could put a couple of young professionals in and get $120-150 a week each.
2 bedroom + bath + small room = ~$43K to build (40m2)...kitchen a few bob more.
JB
 
Hi,

I'm looking to start in property. but it seems very hard without savings. So I decided to build a 2br granny flat at my backyard to get some cash flow. But I understand that I would be in trouble if I do not have the right loan structure in place. So I'd like to have your advice on the structure of the loan.

My situation is I've about 100k equity in my house. That loan is linked to an offset account which got my all savings around 40k.I'm looking at borrowing around 60 k for the granny flat. So what sort of loan structure should I use?

Thank you,
Jason

This is exactly what I've been thinking to do in the past 3 years of owning my PPOR.
Currently still have $200k remaining loan (fixed) with Westpac, and the house was purcahsed for $360k, and I think I have about $150k equity in my PPOR by now and $50k in Savings account.

So Jason could you share with us how you go with the granny flat? :)

Perhaps you've also shopped around for a good reliable builder to build that GF for you, so maybe you could refer them to me as I'm looking for one? :eek:

I had a builder/architect company who quoted me $120k, not sure if they fully understood what I'm after.

Hiya

A separate loan of 60 k will do the job

ta
rolf
Hi Rolf, judging from my circumstances, do you think Westpac will lend me that much money?
If so, how much would you think Westpac is willing to lend me to build that $60k sort of granny flat?

And I suppose there will be increase in the building cover/insurance?
 
Granny Flats

Hiya

I'll be very impressed if you can build a gf below 50K; i'm considering putting one behind my PPOR (60 sqm) and average quote for a 1Bedder is 75K:eek:

BTW, my accountant advised to get a valuation before and after the gf to separate the CGT free status of your PPPOR should you sell one day....

Good luck and keep me posted
 
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