Ipswich Property Investment Case Study: Hayes St, Ipswich Qld
The Granny Flat Revolution : Another great investment story for Ipswich and Ipswich Granny Flats …
OVERVIEW :
- Purchase of existing 2 bedroom + study postwar home in March 2013 – $242,500
- Owners – interstate investors
- Land ‘flat as a tack’
- 1,017m2 full street frontage block
- 40m wide street frontage with 26m depth
- Originally purchased to sub divide
DETAILS :
Early one morning I happened to stumble across what appeared to be a property just sold and within only a matter of a week or so of it having settled, the owner was in full swing with the reno!!
The true realestate agent that I am, I couldn’t help myself wanting a sticky beak so introduced myself as a local independent agent from Vision Property Group living only a few streets away – and would it be possible to have a look at the great renovation they were doing (and by the way, here is my business card …) – I’m sure you know the drill!
It turns out this was the owners renovation team, as the owners (two brothers) lived interstate. Great, I was sure the owners also needed proactive property managers to manage their growing investment portfolio here in SE Queensland – and yes, spot on, they did. I left the renovation team my business card and by that afternoon the owners had rung – and ‘could we help them manage the project and also provide property management services for their growing investment portfolio in SE Queensland…’ ABSOLUTELY !!
The investors had bought this particular post war home for several reasons :
- it was on a sub dividable block of land
- had a 40m frontage
- situated in a mainly owner occupied and well established area
- the land was flat as a tack
- situated 2 houses up from a row of new shops + garage
- only 300m to the nearest school, bus services etc
The owners had considered sub dividing the block of land but it was a huge expense to do this. To split a block of land within Ipswich City Council (ICC) area, you would need to allow $25 – $30,000 per lot so if you split 1 lot into 2, it’s 2 x $25 – $30,000 = $50 – $60,000, OUCH ! A lot of money in anyone’s language!
The owners had originally drawn up plans for a standard 3 bedroom x 2 bathroom home + garage. After much thought and discussion, it was decided the smarter way to move forward was to amend the original house plans, take out the 3rd bedroom and have wrap around verandahs on 2 sides, and make it comply with “Auxilliary Dwelling” requirements – and bingo – another new Granny Flat. Less build cost, no huge council contributions for a Development Application. A win/win and a great result for all …
Before they had completed the renovation, Vision Property Group (Qld) had organized a clean up of the yard, professional photos and had the property up for rent – all done by remote control for the interstate owners. So that on completion of the renovation project on the existing house we had tenants wanting and waiting to move in – another win/win and a great result for all !!
And look at some of the photos – wouldn’t you want to rent it?
Does this investor want to repeat this process – you bet!!
They’re on their next renovation and once completed will come back to do the new build Granny Flat.
MAY 2014 UPDATE
So we’re on the move! Approvals in place and the Granny Flat build has commenced, so now watch this space for progress updates …
SUMMARY :
Think outside the square – you could save yourself a huge amount of money by building a Granny Flat instead of paying exhorbitant council contributions to sub divide – achieving a better bottom line and increasing your rental yield.
