Granny flat finance options

Discussion in 'Loans & Mortgage Brokers' started by nina6789, 28th Jun, 2020.

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  1. nina6789

    nina6789 New Member

    Joined:
    28th Jun, 2020
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    Location:
    Wollongong
    Here is my question:
    1. How can I borrow to build a granny flat without an appraisal on my property.

    I'm currently renovating, I hope to be done before I get finance for a granny flat but if i'm not I know this will affect my property valuation if I was to increase my current mortgage, so I'm hoping to find a borrowing option that doesn't result in an appraisal.
    I would like to finish the renos first but I want the income from the granny flat asap as it means I can step down to part time and spend more time raising my daughter.
     
    nina6789, 28th Jun, 2020
    #1
  2. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    It is possible

    WHat is the current loan amount, and your expectation of the property value pls ?

    If that works, servicing or borrowing power still needs to be ok


    ta
    rolf
     
    Rolf Latham, 29th Jun, 2020
    #2
  3. nina6789

    nina6789 New Member

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    28th Jun, 2020
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    Location:
    Wollongong

    Hi Rolf,

    My current loan amount is 350k and I estimate my property to be valued at around 550k before a granny flat. Also servicing and borrowing power is good even without the expected rental income the granny flat could bring.
     
    nina6789, 29th Jun, 2020
    #3
  4. Rolf Latham

    Rolf Latham Inciteful (sic) Staff Member Business Plus Member

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    What be the approx completion cost for the granny pls ?

    You might get there with a desktop valuer shop via a broker.

    There can be a 10 to 15 % spread amongst diff valuers, though the typical spread is 5 to 10 %

    ta
    rolf
     
    Rolf Latham, 29th Jun, 2020
    #4
  5. nina6789

    nina6789 New Member

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    Location:
    Wollongong
    Thanks for your replies.
    I have not got any quotes yet but I am hoping to spend around 100k for a 50-55sqm granny flat. I have 20-25k in savings (with 10k still aside to continue renovations).
     
    nina6789, 29th Jun, 2020
    #5