Case Study: Basin Pocket
Another great story from Ipswich Granny Flats, the Granny Flat Experts…
OVERVIEW:
- Investment property purchased December 2014
- Flat land, full street frontage on a corner block
- 971m2 block of land
- Existing 3 bedroom postwar house built in 1950
- 30.6.15 Unimproved Capital Value (UCV) land $132,000
DETAILS:
These Sydney investors were looking for investments that were either neutral or positive cash flow. The only way to achieve this was to put a granny flat (auxiliary dwelling) in the large backyard.
Russell Wombey our architect drew up several concepts, with a design finally settled on. We’ve achieved an open carport at one end with a great alfresco area under the roofline at the other end, on a great timber deck. You can nearly reach out and grab a mango from the mature tree near the deck …
Approvals in place, building work commenced early July 2015. Two weeks into it we are close to lock up! Check out the photos of the progress to date.
This will be the second 50m2, one bedroom granny flat built under the reduction in size following the amendments to the Ipswich Planning Scheme in November 2014.
TOTAL SPACE:
|
Granny Flat: |
50m2 17.85m2 |
|
| Total Area: | 85m2 | |
| The numbers look like this: | ||
| Purchase Price Stamp Duty + Legals |
$245,000.00 $8,950.00 |
|
| Total: | $253,950.00 | |
| @ $270 pw rent = 6% rent return | ||
| GF Build Project Management Fee Professional Fess & Charges – Approvals Landscaping |
$121,460.00 |
|
| Total: |
$134,395.00 |
|
| @ $250 pw rent = 10% rent return | ||
| TOTAL PROPERTY COSTS | $388,345.00 | |
| Main house (current rent) | $270pw | |
| Granny Flat (expected rent return) | $250pw | |
| Total rent | $520pw | |
| Rent PA | $27,820 | |
If you average out the two rentals 6% + 10% = 16% / 2 = 8%
8% RENT RETURN ON UNDER $390,000
You’d have to be happy with that!!!
SUMMARY:
Awesome rent return on a great investment property purchase, and a cost effective granny flat build!
Are the investors happy – you bet ! And looking to do it again…
Ipswich & Logan Granny Flats
The Granny Flat Experts
