So I'm looking at building a granny flat on an IP I have at Bateau Bay up on the central coast. The existing dwelling is relatively small and with a large already benched rear yard and private side access the property lends itself to having a granny flat at the back. CDC check's have been done and all is good. My question is, by building a 2 bedroom 60sqm granny flat at the back how much equity am I adding to the IP as a whole. Say it costs $110k all up, how would this be reflected?
We are currently building one on our PPOR in Hornsby. From what i have read it can add roughly 20-30% to the overall value of what the construction cost it can however go the other way. see Value added by Granny Flat Addition for more info
Err I thought conventional wisdom was that you would be very lucky to get as much equity as it cost to build - and what's more like is that you would only recover like 60-80% of the cost in equity.
Flood of memories seeing that name, parents had a permanent van at Bateau Bay caravan park back in the early 80's, I was a young tenager, very different time/place back then (prior to the surf club) great surf there (crap waves in Perth), bush across the road, walk thru to Blue Lagoon where we often had bonfires with inexperienced pashing etc...
I've known Bateau Bay for a while and have seen the central coast grow over the years. My old man has an IP property up there and I ended up buying my first IP there as I became very familiar with the area. Bay Village, road upgrades etc have been great for the area.
