Granny flat in Kallangur - worth doing? and how much would it cost?

I am considering what to do next.

One option is doing something with our corner block in Kallangur (already 3 bed highset house), 1.8km from new train station
First, I want to check that I'm reading the zoning correctly. It's zoned general residential 'suburban neighbourhood', which i understand is a minimum of 600m2. Anyone know this area and can confirm i've got this right. If so i can't obviously subdivide.

So I am considering, with the tightening of APRA etc and the need for increased cash flow to aid with servicing (as well as I don't have lots of tax to deduct so high yield is good), i was thinking of doing a granny flat.

Questions:

1. anyone know the area well and if there's a demand for GFs (I will be talking to estate agents), and would a 1 bed or 2 bed be best?
2. can i separately meter it (water/gas/elect) and have separate tenants
3. how much does it cost to build, and who you'd recommend
4. any idea of rental return?​

 

Have any properties in Logan? You can still get 7%+ here without a GF... Just picked up a house fully renovated nothing to spend for late 3's expected rent $550 per week.

Another one we got last year for around 350k, after a small makeover it rents for $575 per week.

 

Moreton : 55m2, 2 bedroom – land size over 450m2 min frontage 15m
Moreton : 45m2, 2 bedroom – land size over 450m2 if frontage less than 15m

so your corner lot in sub zoning means you can build 55m2. Maybe a tad tight squeeze for 2B, considering the 60m2 for NSW

 

Thanks @RetireRich101 Could you please point me in the direction to find out more of this info
Have you done any builds in Moreton bay?

 

I think a lot of people will be hating you for adding to the oversupply in that area. I don't think its the best time to do it, maybe the vacancy rate drops a fair bit or close to when the uni opens.

 

i suppose if it supplies something that is needed cf all the new 4 beds going up close to their?

 

Agree with @Pentanol, just do your homework before jumping in.

 

25B Somerset Street Kallangur Qld 4503 - Flat for Rent #421323458 - realestate.com.au Is this what you are thinking of doing. See how long it takes to rent. Looks like parking is out front of house and flat entry is walk down the side.At least you have easy entry

 

I second @Pentanol, when the demand for student accommodation arrives. I'm still in two minds whether a student would prefer their own granny flat and backyard space over a unit more central to the Hub. I know I certainly would. My biggest concern is the impact on CG and limited market for a house with granny flat. Unless you could convert similar to a 'pool house' without overcapitalizing.

Would love to hear if anyone has been through the process before or if there's another thread. I purchased in Strathpine through a buyers agent who recommended this strategy in later stages. He advised $115k turnkey through his own trusted builder would suffice. I can source the contact if interested. Nothing under $250 p/w for a 1-2bed anywhere in the area so not a bad return.

 

Also take into account the effect the loss of the backyard and a close second dwelling will have on the original house. It may become less attractive to tenants and have to be rented for a lower amount.
Marg

 

In terms of a granny flat, is it correct you can't lease to separate tenants from the front house? This is what 2 certifiers have told me in Moreton bay.

 

As far as I know, you may be allowed to build a granny flat in certain zones in Moreton Bay, but you are not allowed to rent it separately. They are quite precious about granny flats.

I have recently seen a couple of units that are attached, not GFs, advertised for rent. These are purpose built new buildings for dual occupancy, with fire walls between them and both under the same roof.

It is also important to know that you cannot build just any style of building in the backyard in Moreton Bay. It must be within minimum distance of the main house and clad with the same materials. ie it must visually match the main house.

 

Check with the council before making any assumptions.
Just because they are built this way does not mean it is legal to rent the sides out separately.
Marg

 

Yes, definitely check.

 

Check it out of course but Moteton bay is pretty flexible...from their website

Secondary dwelling - MBRC Planning Scheme

Secondary dwelling may be free standing or constructed under or attached to a Dwelling house. It must:

• be substantially smaller in size to the main house on the property (maximum GFA of 45m2, 55m2 or 100m2, depending on the zone and precinct and primary road frontage - refer to table below for further information);
• be on the same lot as the main house. It cannot be subdivided or community titled at a later date;
• obtain access from the existing driveway giving access to the main house on the property and
• retain a relationship and association with the main house, with the two households making common provision for other essentials for living ('Other essentials for living' is defined as the sharing of utility bills e.g. electricity or Council rates).

Note: The secondary dwelling can be separately leased from the primary dwelling.