GF in Canberra - price, approval likelihood etc

Discussion in 'Granny Flats' started by dryver, 31st Jan, 2021.

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  1. dryver

    dryver Member

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    Hi All,
    I'm new to IP, so please bear with me.
    I'm planning on getting an IP in the Canberra region for around 600k. Looking for a house with >600 m2, with the original house being laid out in such a way that allows a GF to be built. Would appreciate any tips on the following:
    (1) Is it possible to find a builder to build a <70m2 GF with 2 bed, 1 bath, 1 parking for 125k excluding permits, but including everything else? For example, canberragrannyflatbuilders lowest prices are close to 175k.
    (2) Are DA applications generally successful? I know it all depends on a variety of factors, but not sure if APLA leans towards approval. The reason I'm asking is: I want to get to the auction or put in an offer only if I can be reasonably sure of a GF being approved. Don't want to find out after buying that there are issues with approval.
    In case you are wondering, the GF is for cash flow for the next IP.
    Thanks!!!
     
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  2. WillieWoo20

    WillieWoo20 Member

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    Not knowledgeable on either of your questions but curious what areas you are looking at?

    And what’s your view of canberragrannyflatbuilders?
     
  3. dryver

    dryver Member

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    Looking at unappreciated suburbs like Higgins, Holt, Charny, Dunlop, McGregor, Waniassa, Waramanga etc.
    CGFB: Had some initial interactions with them a couple of years back. Seemed easy to work with, their model appeared to be all inclusive. Perhaps that explains their slightly higher pricing. Didn't proceed with them because of changed family situation.
     
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  4. dryver

    dryver Member

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    Sorry, I should have said "not-yet-appreciated suburbs" instead of "unappreciated suburbs".
     
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  5. WillieWoo20

    WillieWoo20 Member

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    In those suburbs are you looking for decent block sizes (eg 800sqm plus) and mostly old established houses that may need some cosmetic renovation before renting out?
     
  6. dryver

    dryver Member

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    Blocks >600 m2, both for CG and GF (ACT requires >500 m2 for GF).
    Looking at price range of 550k-650k, so will be old house. However, not really interested in renos, not my thing. Straight to rent if possible, GF in <1 year after buying.
    Have you bought yours? If not, where are you planning to buy?
     
  7. WillieWoo20

    WillieWoo20 Member

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    I think north west - I like the proximity to UC and ANU, eg Higgins Scullin Holt.

    North eastern suburbs (eg around Ainslie) seem to all have taken off in price already.

    If budget can stretch then Page, Macquarie.

    I live north side so must confess am a bit biased in my knowledge, and need to learn more about the south.
     
  8. Shane1

    Shane1 Well-Known Member

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    Yes this is possible, I did it with a property through converting a garage to exactly what you described minus car space. It was around 100k.
     
  9. dryver

    dryver Member

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    Nice!
    Who was the builder? Did you have the garage knocked down, the flooring removed and then the granny built in that spot? Thanks!!!
     
  10. Shane1

    Shane1 Well-Known Member

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    It was a custom builder specialising in renovations and extensions, class A so skilled at their job.

    Didn’t knock down, converted and obtained approvals after that.
     
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  11. dryver

    dryver Member

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    That's a nice way to do it! Thanks for the response!
     
  12. Lacrim

    Lacrim Well-Known Member

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    I just don't like that leasehold crap in CBR, let alone building on land I don't own.
     
  13. Shane1

    Shane1 Well-Known Member

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    Yeah make sure you get a good Certifier, that’s the key. They will make or break your project.
     
  14. Shane1

    Shane1 Well-Known Member

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    It is a funny system for sure but we get to depreciate on stamp duty so it’s all good. Realistically it’s the same.
     
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  15. dryver

    dryver Member

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    Didn't they start renewing the crown leases a few years back? iirc, some of the oldest leases started expiring.
     
  16. Lacrim

    Lacrim Well-Known Member

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    OK, but that land tax from day 1 BS also sucks. Those cumulative factors prevented me from buying my first IP in CBR a few years ago (Narrabundah).
     
  17. dryver

    dryver Member

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    Yeah, they are not too investor-friendly!!! But on the bright side, the rental market is pretty good!
     
  18. Lacrim

    Lacrim Well-Known Member

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    Yeah just because I don't like it doesn't mean money can't be made...and I know its being made. Carry on.

    Wish I had one decent IP in CBR - was affordable up until a few years ago. Just keeps going up in a straight line!
     
  19. dryver

    dryver Member

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    It's Canberra's turn now! Not sure how long it'll last.
     
  20. Lacrim

    Lacrim Well-Known Member

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    Seems like it's always Canberra's turn. I don't recall the last time it was dead - maybe 5 years ago ie a long time.
     

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