Case Study: Collingwood Park
Another great story from Ipswich Granny Flats, the Granny Flat Experts…
OVERVIEW:
- Investment property purchased November 2015
- Land – Undulating slope to the street
- Full street frontage at the end of a quiet cul-de-sac
- 816m2 block of land
- Existing 3 bedroom, double storey brick veneer house built in 1995
- 6.15 Unimproved Capital Value (UCV) land $157,500
Video Blog – Part 1 – Project Started
Video Blog – Part 2 – Finished Granny Flat
DETAILS:
This is another good example of Sydney investors looking for investments that could be made cash flow positive. These educated investors realised the only way to achieve this was to put a granny flat (auxiliary dwelling) in the large backyard.
We designed a granny flat suited to the unusual shaped backyard.
- There were several timber retaining walls
- Using existing double carport to the RHS of the main house
The unusual shaped backyard required a bespoke granny flat design, resulting in a nice floating timber deck space right into the back corner – this will create a really nice space for tenants, private but still achieving north facing outlook which is great for the best light!
In this instance as there was existing car accommodation that could be utilised for the granny flat to the right hand side of the existing house, there was no need to build any additional car accommodation.
On change of tenancy, we constructed the 6’ treated timber dividing fenceline, so that any new prospective tenants could clearly see their own backyard space. We utilised the old timber retaining walls to set the fenceline, still leaving us with a narrow retaining wall to create a complete new low maintenance garden for the existing house.
Approvals in place, building work commenced August 2016. Two weeks into it work progressing nicely, lock up by the third week !
Check out the photos of the progress to date.
The numbers look like this:
Total Space:
|
Granny Flat: |
50.00m2 15.00m2 |
|
| Total Area: | 65.00m2 | |
| Purchase Price | $355,000.00 | |
| Stamp Duty + Legals (approximately) | $12,950.00 | |
| Total: | $367,950.00 | |
| @ $395pw rent = 5.6% rent return | ||
| GF Build Project Management Fee Professional Fess & Charges – Approvals |
$117,591.00 |
|
| Total: |
$131,405.00 |
|
| @ proposed $250 pw rent = 9.9% rent return | ||
| TOTAL PROPERTY COSTS | $499,355.00 | |
| Main house (current rent) | $395pw | |
| Granny Flat (expected rent return) | $250pw | |
| Total rent | $645pw | |
| Rent PA | $33,540.00 | |
If you average out the two rentals 5.6% + 9.9% = 15.49% / 2 = 7.75%
It’s hard to find a rent return like that for under $500,000!
SUMMARY:
Awesome rent return on a great investment property purchase, and a cost effective granny flat build!
Some very happy investors!
Ipswich & Logan Granny Flats
The Granny Flat Experts
Sonia 0403 309 136
