Case Study: Booval

Another great story from Ipswich Granny Flats, the Granny Flat Experts…

OVERVIEW:

Investment property purchased 2017
Full street frontage on a 759m2
Flat land, corner block (Gomer Street)
Existing lowset 3 bedroom postwar home (1950)
6.17 Unimproved Capital Value (UCV) land $145,000

DETAILS:

These investors were looking to expand their property portfolio into Queensland and were wanting to look at properties that we could value add to, rather than just having one income for that particular property.

An off the market property was sourced and it was bought on behalf of the interstate investors. Both the house and gardens had been meticulously maintained during the years. There was an existing single lock up garage + carport – which made it easy in terms of separate car accommodation for the existing house and new granny flat. A panel was taken out to the right hand side at the back of the carport, and this made the access to the granny flat nice and private.

Being on a corner, this particular property has a two street frontage and is fairly flat. By building a new 1800 high dividing fenceline and across to the neighbour on Margaret Street it’s created very private spaces for both the existing house and new granny flat.

There was a sewer line across the back yard on an odd angle making the building envelope very, very tight. To add to this, the site also had Mining Influence which necessitate a Geo-Technical Mining Report. As a result of the position of the sewer line we then had to ask the council for a relaxation to the side boundary. These three things added a little bit of extra time for the approvals, but having done our due diligence before we commenced the formal approval process we had anticipated these things and so it was really no biggie !

Approvals in place, building work commenced September 2017. Now complete – checkout the video and photos on our youtube channel and www.ipswichgrannyflats.com.au website.

The property was purchased for $280,000 and a great buy for the money, with a rent return of approx. 6%. The granny flat is expecting to return around 9%. If you average out the two rentals 6% + 9% = 15% / 2 = 7.5%

7.5% RENT RETURN – You’d have to be happy with that!!!