Cost effective way to have a granny flat?

Hi all,

One of our properties has a big nice backyard with its own side lane access so we’re thinking to put a granny flat on it.

Had a discussion with the local council and there shouldn’t be any issues. It’s in NSW so 60 sqm max.

Ideally we would like it to be something that looks like a Queenslander (to fit the neighbourhood), not an ugly shed or container. Being so close to QLD means lots of options in that regard (although most are bigger than 60 sqm but found some in the right size) so we can buy, move it here, connect, do a bit of a reno and rent.

Another option would be a kit house that looks good: buy, install, connect, rent.

What would be do you reckon the most cost effective way to go about it? Happy to hear more ideas

 

By "Queenslander" i am assuming this means a highset house?

Granny flats under NSW legislation have height restrictions.
When you exceed these heights, your setbacks must increase, so factor that in.

 

See if there is a solid demand for it first. They work well in Sydney because they are a cheaper alternative to a house but rents here take up a lot of peoples wage. Having a granny flat also compromises the front house somewhat. Again, in Sydney it doesn't matter so much because supply is tight and people are hocked up to the eyeballs in consumer debt . You drop the front house by $20 and someone will go for it.

I had a house/granny flat setup in a regional area but ended up selling it because the demand just wasn't there. Took a month to lease the flat (and it was a bloody nice flat!) and after I sold it it took the new owner 2 months to find a tenant for the front house.

 

Thanks, mate. I mean a removable house. It's all done with consultation of council and using a town planner so no worries there

 

Thanks, mate, very good point.

Definitely a strong demand for accomodation in that suburb. Am certain could rent it out super quick for good long term tenants.

The house in front won't suffer much as there is vegetation that separates between the two areas and each has their own entrance from a different street (so it's like having a neighbour that is close by but you can't see them).

Am still wondering if kits and removable houses are the quickest/cheapest way to go about it (sheds excluded)...

 

What do you think it will cost and what sort of net return will you get?

 

Still gathering quotes but I reckon it will be 80-100 all up. Rent will probably circa $250 p/w.

Definitely good return but what I'm after is 'speed to market', cost effectiveness and good result (not a shed, it's in a nice neighbourhood). Just thought it would be good to ask if anyone has better ideas that fit the bill?

 

That looks like a good return

 

I know your mentioned you will consult with council etc to ensure compliance, but take extra care with a removable GF. There are some non-complying one's made overseas with no regard of our building codes here. Can very easily fall outside BCA requirements and not pass council/certifier approval. Just something to be aware of.

 

Cheers, guys.

So sounds like the above options I mentioned are the most cost effective ones. That's what my research told me but wanted to gather more opinions