Ipswich Property Investment Case Study: One Mile, Ipswich Qld

The Granny Flat Revolution : Another great story for Ipswich and Ipswich Granny Flats …

OVERVIEW :

• Vacant residential land purchased for $85,000 April 2012
• Land was ‘flat as a tack’
• 685m2 rear lot with a common shared driveway
• Unimproved Capital Value (UCV) of the land $103,000 30.6.13
• Originally for an owner occupier, now as an investment

As a licenced agent, I had rung one of the builders I had done some previous work with and suggested to him there was a great deal to be had!!

In April 2012 he purchased the 685m2 rear lot for the pricely sum of $85,000 !

Even though he was a licenced builder himself, it’s near impossible to get bank finance to build your own principle place of residence (PPR). He engaged a building company for the build and this is how the project went …

He was looking for a reasonable sized 3 bedroom x 2 bathroom + double lockup garage (DLUG), in addition to a place for one of his grown up children to live. Ipswich Granny Flats suggested that on this size block we could potentially do a 3 x 2 x 2, but with some smart planning could also have space to do an Granny Flat under the same roofline with a common wall to the rear of the block.

The drawings resulted in a set of plans that accommodated all of the above. A pre-lodgement meeting with Ipswich City Council (ICC) was a learning for all concerned, as this was the first new build here in Ipswich that allowed a Granny Flat to be built with the option to rent it out as an investment – Ground Breaking Stuff!! And some members of ICC were unaware of the relaxation to the Planning Scheme to allow this …

Building commenced early 2013 and completed within a reasonable timeframe, with owner moving in the first half of 2013.

The whole finished product looks great. Each of the 2 buildings are divided by common wall which houses the DLUG + SLUG for the Granny Flat. A simple but effective idea for some noise control as well (anyone got teenage kids with loud music?). At each end of the L shaped building itself, they both have an undercover outdoor entertainment area on concrete slab – great for the outdoor BBQ or bad weather.

There were a few small hurdles as the project moved forward. The private certifier requested extra e-rating glass as there was a noise buffer over the area due to it’s proximity to Amberley Airbase. Under normal circumstances, the build cost would be in the vicinity of $260K but due to the above was closer to $300k.

TOTAL SPACE :

Main House : 130.37m2 + DLUG 40.86m2
Granny Flat : 64.89m2 + Outdoor BBQ area 19.8m2 + SLUG 19.76m2
TOTAL Area : 275.68m2

If you look at the numbers :

RENT RETURNS :

SUMMARY :

One very happy owner, now retired with all kids looking to repeat the same process …

Another successful Vision Property Group (Qld) and Ipswich Granny Flat story !