Ipswich Property Investment Case Study: McGill St
Another great story from Ipswich Granny Flats, the Granny Flat Experts …
OVERVIEW:
- Investment property purchased 20.10.14
- Flat land, full street frontage
- 971m2 block of land
- Existing fully renovated 3 bedroom Workers Cottage
- 30.6.13 Unimproved Capital Value (UCV) land $127,000
DETAILS:
November 2014 the new owner of the property made a general enquiry about the granny flat potential of this site. Was it suitable to build a granny flat at the back of the property? In this instance, yes it was! On listing the property for sale, as part of my write up I listed several options for any potential buyer and this was one of them.
A feasibility proposal was put together and worked through with the client, and after some final tweaking everyone was happy with both the plans and the price. We have found that no two projects are ever the same – whether it’s a home owner or astute investor, everyone has their own ideas of what they want/need. No cookie cutter approach here.
Russell Wombey, our architect designed a granny flat that would fit across the back fenceline, literally, leaving the space for future sub division but still allowing the potential to have a granny flat in the back yard of what would be a newly created front lot, situated near the renovated workers cottage. The owner has the potential to receive four (4) incomes from this one investment property – and was able to purchase it for only $223,500 ! Fantastic buying on his part…
This will be the first 50m2, one bedroom granny flat built under the amendments to the planning scheme November 2014. As a result of the soil test, it will also be on steel adjustable stumps. There will also be a stand alone double lock up garage (DLUG) for car accommodation. With the granny flat + DLUG, we feel it could achieve $260 per week rent!
Foundations commenced mid February 2015, wall frames up, roof trusses on – waiting on roofers ! But we should have the project completed within a 4 – 6 week period – so watch this space for the work in progress…
The Big Backyard
| TOTAL SPACE: | |
| Granny Flat: | 50.0m2 |
| Timber Deck/Outdoor Alfresco area under roofline: 3.5m x 5m | 17.5m2 |
| DLUG: 7m x 7.5m | 52.5m2 |
| TOTAL AREA | 120m2 |
| The numbers look like this: | |
| Purchase Price | $223,500 |
| Stamp duty + legals | 7,730 |
| Total | $231,230 |
| @ $285 pw rent = 6% rent return | |
| GF build | $113,800 |
| DLUG | 32,830 |
| Project Management Fee | 4,950 |
| Professional Fees & Charges (Approvals) | 8,090 |
| Total | $159,670 |
| @ $260 pw rent = 8% rent return | |
| TOTAL PROPERTY COSTS | $390,900 |
| Main house (current rent) | $285pw |
| Granny Flat | $260pw |
| Total rent | $545pw |
| Rent PA | $28,340 |
| = average of 7% rent return on $390,900 investment | |
SUMMARY:
Awesome rent return on a great investment property purchase, and a cost effective granny flat build!
You’d have to be happy with that!!
A Great Success for the Investors
Vision Property Group (Qld) & Ipswich Granny Flats
The Granny Flat Experts
