NSW Seeking Advice: Granny Flat vs. Subdivision for Investment on NW Sydney Property

Discussion in 'Property Analysis' started by _alex_, 25th Apr, 2024.

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  1. _alex_

    _alex_ Active Member

    Joined:
    24th Jan, 2017
    Posts:
    38
    Location:
    Sydney
    Hello everyone,

    I'm contemplating a development project on my 1400 sqm property (PPOR) on a battle axe piece if land in North West Sydney. The property has an existing house that covers 160 sqm. Featured on the land is a stormwater easement, indicated by the blue line in the attached diagram, and a sewage line running horizontally as well.

    I am considering two options to accommodate my parents and simultaneously enhance the property's value. I would appreciate insights on the financial or investment return aspects of each.

    Option A: Erect a granny flat in the orange highlighted area on the diagram.
    Option B: Subdivide the property and build a separate house in the same orange area.

    Which option might offer the best balance of immediate value-add and long-term investment return? Have any of you had similar experiences, and what were the outcomes?

    Your advice and personal anecdotes would be incredibly valuable. Thank you!

    Alex
     

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    _alex_, 25th Apr, 2024
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

    Joined:
    14th Jun, 2015
    Posts:
    10,668
    Location:
    Gold Coast (Australia Wide)
    Grannies usually add $ for $ spent or close to , in Sydney.

    Subdivs of standard type blocks tend to provide a much better $ result, largely because a house on its own saleable bit of dirt has much wider market appeal, than a "dual occupancy".

    As to what you can build on the land I will leave to others - no idea

    ta
    rolf
     
    Rolf Latham, 25th Apr, 2024
    #2
  3. _alex_

    _alex_ Active Member

    Joined:
    24th Jan, 2017
    Posts:
    38
    Location:
    Sydney
    Just to add some additional information: the property is in Hornsby council, and because it's a battle-axe, the driveway is less than 3.5m wide. Would that be a big problem for subdivision? Anyone got any experience around subdividing a battle-axe piece of land? Thanks!
     
    _alex_, 25th Apr, 2024
    #3
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