Granny Flat Bank Valuation

Discussion in 'Loans & Mortgage Brokers' started by James G, 23rd Jan, 2017.

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  1. James G

    James G Active Member

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    6th Dec, 2016
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    Has anyone had a bank valuation done on their recently built granny flat? Im interested to know if these builds are coming in above, below or spot on cost of construction?

    I'm looking to potentially build a granny flat out the back of my Margate property later this year if everything stacks up after further research.

    Cheers.

    James
     
    James G, 23rd Jan, 2017
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    margate QLd I assume

    if its your average 130 k build, my guess would be 70 to 75 % of that will come back in val

    ta
    rolf
     
    Rolf Latham, 23rd Jan, 2017
    #2
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  3. James G

    James G Active Member

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    Thanks Rolf. After further research it it seems building a granny flat is not the right option on this property.
     
    James G, 28th Feb, 2017
    #3
  4. Propertunity

    Propertunity Well-Known Member

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    Granny flats are built by investors to increase rental yield. They are not a value-add exercise like say a cosmetic reno might be.
     
    Propertunity, 28th Feb, 2017
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  5. scientist

    scientist Well-Known Member

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    This has been the old school thought but I've actually been actively trying to buy properties in sydne and melb with granny flats already built and I can never find good value after considering a similar property + build costs. So I no longer believe this due to my own personal experience.
     
    scientist, 13th May, 2017
    #5
    S1mon likes this.
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