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FREE Granny Flats … posted on the 20th September 2015
Ipswich Granny Flats, your local Granny Flat Experts, bring to you another interesting snippet :
Sonia Woolley
Ipswich Granny Flats
19.9.15
At Ipswich Granny Flats we provide free advice to all of our property investors. We get a huge number of enquiries including phone and email asking whether they can build a granny flat on their investment property, the approval process, how do they rent – what is the rental market like in Ipswich, where should I buy an investment property to how do I finance the whole project ? Is it feasible and do the numbers stack up ?
So many questions …
Lets look at how a granny flat can cost you – ZIP! That’s right – it can be free, if done right. So let’s do the rough numbers.
You have an investment property chances are its going to be mortgaged. As part of your financing a granny flat build, it’s probably going to be an equity loan or a construction loan. You will be borrowing 100% of the build cost which we’ll set at $120,000.
As you can now only build 50m2, one bedroom granny flats here in Ipswich (you can build larger, but have to comply with Dual Occupancy provisions within the Planning Scheme) it’s essential that you make it as attractive to any potential tenants as you can. Ipswich Granny Flats have built the first granny flats under the reduction in the size, and they are renting out around the $250pw, $13,000pa.
If you own your own home with little or no mortgage, your tenants are paying back the loan at a rate of $250pw (current rent for a 50m2, one bedroom granny flat). The time taken to repay a loan of say $125,000 is about 10 years. After this, any income received from your granny flat is yours – FREE, forever more !
You will be making money from your backyard – you will be creating a passive income. If you’re an investor, this second dwelling will be paid off in 10 years, give you full capital depreciation on the new build, then you can pocket the money or pay the mortgage down on the original existing house. Imagine if you had 3 or 4 investment properties where you can do this – early retirement’s looking good …
Begin with the End in Mind
You need to start the journey with the end in mind using such words as separation, privacy and vacancy rate. It’s paramount to understand what type of property to buy that is going to be ‘granny flat friendly’.
We want all of our homeowners or investors to :
1. Prosper
2. Have a good understanding of what to look for
3. Minimize construction costs
4. Maximize return on investment
5. Minimize tenant vacancy
6. Stick with us ! We’ll look after you. We build a superior product, and find you the best tenants!
7. REPEAT ALL OF THE ABOVE and have fun whilst doing it
Granny Flat Experts
Some of our investors are now building their third and fourth granny flats, both in Ipswich and Logan. When they retire, they can look forward to having a passive income from these dual living properties – already having paid them off so zip out of pocket costs – ZERO, FREE !
As an example, one investor’s property had five major trees and two sewer lines in the back yard. This was a large, flat block of land that was in the process of sub division. We determined the building envelope on the proposed two new lots. In the backyard of the front block, which was under 600m2 even though there were two sewer lines at 90 degree angle to each other, our architect still managed to fit a granny flat in the very small building envelope – but it by no means feels small and cramped as a finished product. If you’re unsure about your existing investment property, give us a bell – we can easily check it out for you AT NO CHARGE !
Our ultimate goal is to teach YOU, the homeowner or investor what to look for so that as soon as a property becomes available, you can pounce on it armed with full knowledge. All investors, Australia wide are now wanting to buy in SE Queensland, it’s still so affordable and a rising market – so it’s becoming increasingly difficult to find something suitable. And we don’t see that changing any time soon.
Stay with us – we can help that journey. We have built more infill granny flat builds than any one else in SE Queensland. We are truly the Granny Flat Experts!
We can help you :
1. Develop a knowledge of what to look when searching for a granny flat friendly property; efficient ways to search eg the internet, buyers’ agents
2. Think about how to create the privacy and separation between tenancies
3. Allowing for all the extras : new dividing internal fences, any landscaping, removal of sheds or outbuildings, parking, heating / cooling, storage space, where to put the clothesline!
4. Finding the right real estate to managing your investment – THAT’S US !
We manage it like we own it – because we do own the business, and we are mad property investors ourselves!
5. Finding the right granny flat builder who is experienced in building them – THAT’S US ! We build a granny flat like we own it – because we do own the business! And we have built granny flats for our investment properties – so we practice what we preach.
TOP TIPS for the RIGHT GRANNY FLAT FRIENDLY Property …
1. Flat, level block or sloping to the road for stormwater run off. Council’s first preference for stormwater is to kerb & gutter, otherwise tapping into an existing system or worst case scenario the need to allow for $2 – 2,500 for a dispersion pit
2. Corner Blocks are great – two street access is good for separation and privacy for the second dwelling
3. Rear yard access from a car parking point of view. Any prospective tenant will want unemcumbered access for their vehicles
4. Minimum 15m from the back of the existing house to the back boundary
5. Look for a 1.5m+ setback from the house to the side boundary on the side opposite the driveway to allow a separate walkway entrance for your granny flat tenants
6. No significant trees in the backyard. They can be costly to cut down and grind the stumps. We often come across people wanting to build granny flats that have to spend $3 – 5,000 on vegetation and tree removal. Try and avoid this situation !
I hope this helps you in your decision to find a suitable property in which to build your granny flat !
If you have any questions about any potential property you may be looking at purchasing, don’t hesitate to give us a call – we are the granny flat experts !
Ipswich Granny Flats
Sonia 0403 309 136
Want us to find the right tenant ?
Call Julie 0411 073 747
Written by Sonia Woolley