Case Study: Eastern Heights

Another success story for Ipswich Granny Flats, the largest builder of Granny Flat in SE Queensland …

OVERVIEW:

Investment property purchased August 2009
Negatively geared investment for the landlords
764m2 block on a reasonably flat block of land
6.13 Unimproved Capital Value (UCV) of the land $167,500

Watch part 1 of the case study video blog here:

May 2014, the owners of Lloyd George Street enquired about potentially building a granny flat at the rear of the property.

This investment was actually negatively geared for the landlord, so the questions were : was the property suitable to build a granny flat on at the rear, what would the cost be, and what would be the potential rent ?

Even in the initial conversations we have with investors, most of them want to know the answer to all of the above questions.

These owners are pretty savvy investors, and had already commenced the finance process so were ahead of the pack to start with.

Our architect drew up plans to suit the site (passive solar orientation), a feasibility completed, plans and approvals from our private certifier lodged with council, HIA contract drawn up and signed – we were all good to go.

At the same time finance approvals were being sought, the rush was on to have all approvals in place before the council’s announcement to reduce the size of the granny flats from 65m2 – two bedroom to a much smaller foot print of 50m2 – one bedroom ! We managed to get approvals through about 5 days before it happened – YAH!! I believe we were one of the last to slip through …

Whilst all of the above was happening, we kept progressing forward clearing the site of some large trees and vegetation. So once approvals came through we were good to go almost immediately.

Within the first week, we levelled the site, prepared the bore holes for additional engineered piers (as per the engineers recommendations), framed up the slab, poured the slab with the plumber installing the services and storm water in place at the same time.

And so building commenced …

TOTAL SPACE :

Granny Flat : 65m2

Timber Deck/Outdoor Alfresco area under roofline : 22.4m2

Single Carport : 22.4m2

TOTAL Area : 109.8m2

The rent return has gone from 4.5% to approximately over 6% – GREAT RESULT !

SUMMARY :

Built in 49 days !!

Final Completion Certificate and tenants ready to move in !

And one very happy owner : built on budget, on time, a tenant waiting to move in – and a much healthier rent return ! A definite WIN / WIN !

Another success for Vision Property Group (Qld)