Case Study: Wulkuraka
Another great story from Ipswich Granny Flats, the Granny Flat Experts …
OVERVIEW:
- Investment property purchased, settle March 2016
- Unusual shape block, sloping to the road
- 12m wide frontage, fanning out to a back fenceline of just under 38m
- Original workers cottage on a 996m2 block
- Across the road from recently upgraded Wulkuraka Train Station
- 6.15 Unimproved Capital Value (UCV) land $134,000
Video Blog – Building the Granny Flat
DETAILS:
These investors had been looking for a property that could give them positive cash flow. They were astute buyers, purchasing at the right price, doing a renovation on the existing workers cottage but realised to make it truly cash flow positive they needed to build a second dwelling ie granny flat.
This property did have the potential to be sub divided, but this is a costly exercise and so putting the funds towards building a new granny flat was the more cost effective solution.
These investors have played an active role in the choice of colours, finishes etc to complement the renovation down on the existing cottage.
The existing house was positioned quite close to the front of the property giving us quite a large building envelope to play with at the back. This allowed for a single carport as part of the extended roofline to the granny flat, and enough room to enable a car to reverse and drive nose first out to the street.
The 6’ high treated timber fenceline was installed prior to the commencement of the granny flat building work making it easier for the new tenants in the renovated cottage.
With all approvals in place, building work commenced the end of July 2016. Check out the photos of the build in progress !
The numbers look like this:
Total Space:
|
Granny Flat: |
50.00m2 13.90m2 |
|
| Total Area: | 85.80m2 | |
| Purchase Price | $175,000.00 | |
| Stamp Duty + Legals (approximately) | $5,995.00 | |
| Total: | $180,995.00 | |
| @ $270pw rent = 7.76% rent return | ||
| GF Build Professional Fess & Charges – Approvals |
$128,800.00 |
|
| Total: |
$137,795.00 |
|
| @ proposed $250 pw rent = 9.43% rent return | ||
| TOTAL PROPERTY COSTS | $318,790.00 | |
| Main house | $270pw | |
| Granny Flat | $250pw | |
| Total rent | $520pw | |
| Rent PA | $27,040 | |
If you average out the two rentals 7.76% + 9.43% = 17.19% / 2 = 8.59%
8.59% RENT RETURN for $320,000
There wouldn’t be many investments that could match those numbers – and a new build out of that where you have the first 5 years full capital depreciation on it! 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!
Ipswich & Logan Granny Flats
The Granny Flat Experts
Sonia 0403 309 136
