I am not in favour of building new g/flats unless they are already in situ, because they will set you back $100K, hard to access the equity and you can not sell it off. Not to mention unless you have the right set up, separate meters, separate entries, you may end up with tenant issues.
Options for PPoR <10km from Perth CBD
- Thread starter perthguy
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I am not in favour of building new g/flats unless they are already in situ, because they will set you back $100K, hard to access the equity and you can not sell it off. Not to mention unless you have the right set up, separate meters, separate entries, you may end up with tenant issues.
For example, a 700 sqm R20 block with a decent existing house and unused back yard. You can put a granny flat behind but you can't build a unit or house. There are issues: servicing (water, sewer, power, gas), access, car parking, buying in an area where there is demand for people to rent a granny flat, capital gains tax, deductibility of interest and expenses, loan structuring etc. It's not a very straightforward process.
You can spend $150,000 building the granny flat but not necessarily expect to add $150k of value across the whole development. I haven't run any numbers yet so I have no idea if it is even worth doing... but it's certainly worth investigating.
Understood. There are also tax implications people need to be aware of:
http://spionline.com.au/resource-centre/tax-and-legal/10694-getting-the-most-from-your-granny-flat
A good article for anyone considering this.
http://www.positiverealestate.com.au/wp-content/uploads/2012/05/Granny-Article-YIP-Smaller1.pdf
Does not cover electricity etc though.
EDIT: "Another decision homeowners face is whether to
meter the granny f lats separately for water and electricity.
Though there is an extra charge associated with both
of these, many councils stipulate that landlords cannot
charge tenants for utilities in secondary units if a separate
meter does not exist."
http://www.positiverealestate.com.au/wp-content/uploads/2012/05/Granny-Article-YIP-Smaller1.pdf
Does not cover electricity etc though.
EDIT: "Another decision homeowners face is whether to
meter the granny f lats separately for water and electricity.
Though there is an extra charge associated with both
of these, many councils stipulate that landlords cannot
charge tenants for utilities in secondary units if a separate
meter does not exist."
It looks like you'd get your money back in Bassendean area. This sold for $690,000 on 24/10/13.
http://www.realestate.com.au/property-house-wa-eden+hill-114893983
I've seen a couple of granny flats in Caversham, doesn't seem to add too much value.
http://m.realestate.com.au/property-house-wa-caversham-115590103
http://m.realestate.com.au/property-house-wa-caversham-115590103
Yeah, who would want to rent a granny flat in Caversham?
I think it is early days for ancillary accomodation in Perth with the recent changes to stage government rules regarding renting to non-related third parties.
As a rough estimate, a decent granny flat in Mt Lawley could rent for around $450 per week. How can that not add value to the property?
I'm not liking the idea of a granny flat, rather a house behind a house. i started another thread for this, trying to work out the smallest size block I would need in order to build a house behind an existing one, without having to rip down the front house.
Hence the reason Cloverdale and Belmont are out for me now and I'm looking at Beckenham, Lockridge, Beechboro, Eden Hill - I want a 900 block, not a 700 so it's slim pickings out there.
Thornlie also has some reasonably priced retain and subdivides, although they don't come up often enough
If you don't mind a main road: http://www.realestate.com.au/property-house-wa-thornlie-115848987
http://www.realestate.com.au/property-house-wa-thornlie-113885311 ($505,000 in Jul 2013)
http://www.realestate.com.au/property-house-wa-thornlie-113654875 (List price: Over $415,000 in Apr 2013)
Me either. But I can't make the numbers work on a $799 retain and build either
799k
Ill sell you a da approved retain and build there for less than that
ashfields another option but minimal stock at the best of times.
Found anything of interest yet?
cheerx
over 799k http://www.domain.com.au/property/for-sale/house/wa/belmont/?adid=2010883508799k
$799,000 - $849,000 http://www.domain.com.au/property/for-sale/house/wa/cloverdale/?adid=2010928643
?Buyers over? $799k http://www.domain.com.au/property/for-sale/house/wa/cloverdale/?adid=2010898582
need I go on?
Where? How much? What is the existing house like?Ill sell you a da approved retain and build there for less than that
I like Ashfield, Bassendean and Embleton but they are hard to get into.
Yes. But they go under offer in 24 to 48 hours... before I get a chance to inspect.
over 799k http://www.domain.com.au/property/for-sale/house/wa/belmont/?adid=2010883508
$799,000 - $849,000 http://www.domain.com.au/property/for-sale/house/wa/cloverdale/?adid=2010928643
?Buyers over? $799k http://www.domain.com.au/property/for-sale/house/wa/cloverdale/?adid=2010898582
need I go on?
Where? How much? What is the existing house like?
Cloverdale or morley. Offers
I like Ashfield, Bassendean and Embleton but they are hard to get into.
I like these areas to and your dead right about supply
Yes. But they go under offer in 24 to 48 hours... before I get a chance to inspect.
Yeap have to be quick to have any chance atm
Cheers .........
If you want a blueish chip PPOR which is a 12.5km cycle to the CBD and $699 is within budget snap this one up
http://www.realestate.com.au/property-house-wa-gwelup-115843987
http://www.realestate.com.au/property-house-wa-gwelup-115843987
Nice house! But for a PPoR, I don't like to live on a main road.
Ah bugger I didn't realise that block backed onto a main road. I saw cul de sac location and though it was pretty good.
On the plus side you jump over your back brick wall to the bus stop when it's too rainy to ride.
Okay, got one for you
http://www.tcrealestate.ca.com.au/c...nfo4.cgi?clientid=tcreales&propertyid=5955397
Embleton is one of my fave suburbs and is one of the easiest for retain and build because the original houses are often to the front and small (no attached garages) and renovate well.
Saw that. I don't even mind the approved DA design. It's pretty good. Any idea how bad the front house is? Is the back block very steep?
For me, this is in a pretty good location. Value to be added with the front house through renovating... as long as it's not too bad. Potential income from renting out the granny flat.
Dislikes are a possibly steep back block + if it is so smart to build on the back, why did the vendor not do that instead of selling? What does the vendor know that I don't?
