Bank valuation for Granny Flat in Western Sydney

Discussion in 'Loans & Mortgage Brokers' started by AndyNo, 16th Aug, 2019.

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  1. AndyNo

    AndyNo Member

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    30th Jun, 2016
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    Location:
    Sydney
    Hello everyone!

    I have a luxury granny flat (Brick - Italian appliances) 3 bedrooms . I spent around $150 000 (owner builder) to build it. Renting price is around $450 - $470 / week in the area.

    Just wonder how much is the bank valuation for that?

    Thank you
     
  2. Property Twins

    Property Twins Finance Strategists Business Member

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    Location:
    Sydney, Australia
    Hi Andy
    What are other properties with granny flats selling for in the area?
     
  3. AndyNo

    AndyNo Member

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    30th Jun, 2016
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    Location:
    Sydney
    Hi Propertytwin

    I think it is around $900.000 but to be honest there are not many properties like that get sold in the area. Postcode 2164
     
  4. Property Twins

    Property Twins Finance Strategists Business Member

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    Location:
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    Bank valuation will depend on the valuer looking at comparable properties. Your Granny flat may be high end finishes, but if that's not the standard for the area and if insufficient comparables yours will be on par with other properties with Granny flats.
     
    Archaon likes this.
  5. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    Location:
    Gold Coast
    In the earlier days in Sydney, Grannies would return capital of 60 to 70 c in the dollar in many lower cost suburbs.

    This is because there werent many comps, and a 3 bed house with 2 bed granny would be compared to a 5 bed house............ different animal yes.

    Today it can be a little better, the more valuable the land content ( ie higher value suburbs) the more likely that one would get dollar for dollar increase in value or better.

    An example is a northern beaches granny can rent for 600 or more a week and add > 1.5 x capital value if well done.

    Typically, high end fit out in a granny, wont add more value than a modest fit out, because its not reflective of the average market for the area.

    Cities that have later laws around granny flats are experiencing similar issues, there is little no comparable stock until the product becomes more mainstream

    ta
    rolf
     
    AJP likes this.