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Granny flat - Central Coast

Discussion in 'Renovation & Home Improvement' started by RenegadeDom, 25th Feb, 2016.

  1. RenegadeDom

    RenegadeDom Well-Known Member

    Joined:
    22nd Feb, 2016
    Posts:
    89
    Location:
    Sydney
    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?
     
  2. andrew_t

    andrew_t Well-Known Member

    Joined:
    25th Jun, 2015
    Posts:
    69
    Location:
    Sydney
    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
     
  3. thatbum

    thatbum Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    906
    Location:
    Perth, WA
    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.
     
  4. andy ngo

    andy ngo Active Member

    Joined:
    19th Jan, 2016
    Posts:
    25
    Location:
    sydney
    Hi Andrew

    which builder did you choose? if you don't mind

    thanks
    regards
     
  5. WestOz

    WestOz Well-Known Member

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    19th Jun, 2015
    Posts:
    626
    Location:
    WestOz
    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...
     
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  6. RenegadeDom

    RenegadeDom Well-Known Member

    Joined:
    22nd Feb, 2016
    Posts:
    89
    Location:
    Sydney
    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.