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Granny flat rental appraisal... Logan.

Discussion in 'Property Management' started by Richard Williams, 2nd Nov, 2015.

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How much per week rental... 40m2 Granny Flat Logan.

  1. $160

    2 vote(s)
    15.4%
  2. $170

    0 vote(s)
    0.0%
  3. $180

    3 vote(s)
    23.1%
  4. $190

    2 vote(s)
    15.4%
  5. $200

    4 vote(s)
    30.8%
  6. $210

    0 vote(s)
    0.0%
  7. $220

    0 vote(s)
    0.0%
  8. $230

    1 vote(s)
    7.7%
  9. $240

    0 vote(s)
    0.0%
  10. $250

    1 vote(s)
    7.7%
  1. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    Loganholme, Brisbane
    Please vote before/after commenting :D :D :D .....

    Any Logan investors care to say how much rent would be achieved for a new 40m2 Granny Flat in Loganlea, it would have a decent kitchen (not a kitchenette) with range hood, 60cm oven and cook top, good bench space, a built in wardrobe 2.4m wide floor to ceiling and air conditioning. The bathroom would have a 1200mm wide shower with a 900 wide vanity. There would be no separate bedroom, it would be like a large hotel style room, living and sleeping combined. Total 40m2. Plenty of separate yard space.

    The location is 2 minutes walk to a bus stop and local shops and 15 minutes walk to the Loganlea rail station (express to Brisbane CBD).

    Am looking for the opinion from investors not PM's initially as there are not many new 40m2 GF's about...

    Feel free to comment below with any thoughts... My block size is 760m2 so I can go to a 70m2 GF, not sure if its worth the cost to build 70m2...
     
    Last edited: 2nd Nov, 2015
  2. Taku Ekanayake

    Taku Ekanayake Well-Known Member

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    Hey @rico2011 how much does a granny flat cost including legals, set-up, council fees, and everything in between, cost to build a granny flat?
    Sorry to digress on this initial post...
     
  3. Biz

    Biz Well-Known Member

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    I dont know about the appraisal but build it as big as you can. Difference in cost to build to 70m2 instead of 40m2 wouldnt be that much but it would make it more appealing and rent for more too.
     
  4. neK

    neK Well-Known Member

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    40sqm is small. But at the very least I would put a wall in to make it a 1bed instead of a studio.

    I'm with biz, go 70sqm. With some creativity you can pull off a 3 bedder.

    What you build should be guided by demographics. Not point building a 1 bedder when it's not what people are after
     
  5. Special order

    Special order Well-Known Member

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    People will look at share houses/one bed units in comparison, search "self contained" on gumtree

    Go through and have a look at comparables,

    http://www.gumtree.com.au/s-ad/1085503665

    How much are you spending on the build? I would do a drive around and see what removables are achieving with the same layout and save your cash for a corner highset buy, but it depends if your subdividing, needing vals or requiring more equity and of course your long term strategy .

    Have you been to see the guys down in Yatala? One of those for 40k inclusive set up properly and you would easily get 270 a week in rent, if it's a corner block with carport and fenced for privacy even more.

    I have noticed that many for rent are leased by owners and not Rea and the money they ask for is too cheap and includes all bills. You can see from the hits the ads get they are very popular and they lease out super fast. Most people that lease these out are just looking for a top up in their ppor mortgage not for investment cash flow Also most seem to be situated in better suburbs.

    Sorry I don't know much about loganlea, woodridge or slacks creek but I have had positive experiences with dual living in other suburbs.

    A good way to test the water is to draft up a dummy ad with some comparable pics from google and put it up and see what the response is. You don't need to reply to anyone but will give you a taste of who and what's to come.

    This is just my interpretation of what I have experienced and am seeing, so do your own dd! I have also found that a lot of builders, rea and even some outfits that "sell" granny flats arnt too brushed up with what's happening in Logan market wise so research everything your advised

    There are some going up now around Daisy hill, Shailer park and Eaglby also north of loganholme there looks
    like one is being built on Jalan Rd maybe check it out

    I don't think we are seeing the granny flat build race like down in NSW, as it's pretty common up here to have 2 different parties living up and down in a highset, which obviously costs less to set up IMO

    I would also be interested in hearing what anyone else has experienced with dual living in Logan
     
  6. Special order

    Special order Well-Known Member

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    Also I forgot to add, but I saw a garage conversion on gumtree and they wanted 270 a week for rent and if you saw it you would roll your eyes, but hey they rented it cause that's what some people want, but I think it makes you want to think twice before committing to a 100k build,
     
  7. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    Yes, have been to Yatala, 47k buys you a 9 x 4.5m (internal 40m2, configured how you like) plus transport to site, certifiers fees, soil tests, electrical connection, sewer connection and footings etc etc, all up about 60k done and dusted (approx).

    From my monitoring Gumtree over many months the average advertised rent in a share house for Logan would be around 150 to 180 a week. I also see a few wanted adds where people just want their own space, so I figure that a new fresh GF even at 40m2 should achieve at least $180 a week...? I think many people prefer their own space, sharing is often problematic...

    So if an investor had 2 GF's at 60k each and renting for $180 a week thats $360 a week for a 120k spend and good depreciation...
     
    Last edited: 2nd Nov, 2015
  8. Special order

    Special order Well-Known Member

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    I havnt been there since last year but I was quoted 36 plus council papers and slab and then whatever it was for connections, But I know for a fact that you should get high 2s rent for one of these, 180 is far to cheap but I suppose it depends where it is positioned on the block, is it a corner block?
     
  9. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    I'd be surprised if you can get 270 a week for a converted garage unless its someone who cannot get a normal rental.
     
  10. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    Yes its a 760m2 corner block, there will be heaps of space around it and between the main house. There will also be an (existing) large powered garden type locable shed (approx 4.5 x 2.5m) which adds to storage... There would be no carport.
     
    Last edited: 2nd Nov, 2015
  11. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    What size?
     
  12. Catalyst

    Catalyst Well-Known Member

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    Good luck @rico2011

    Following your progress :)
     
  13. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    I'm more interested in the rent achievable for the 40m2 v's say 70m2. I think there is a market for cheap self contained accomodation, $300 a week for 2 bed GF in Logan is not particularly cheap IMO, its about average rent in Logan for a 2 bed place. If your a single person would you pay $300 for a 2 bed or 180-190-200 for a one bed/studio??
     
    Last edited: 2nd Nov, 2015
  14. Special order

    Special order Well-Known Member

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    Well maybe it didn't rent but we get 250 a week for one of ours, and it is attached to a main dwelling

    Well if that's the return you think you will get and be happy with it then go for it, but I think you are aiming to low, but like I said I don't know loganlea
     
  15. Special order

    Special order Well-Known Member

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    You will get single tradies that will pay 250 a week for a one bed with storage, yard and garage
     
  16. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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  17. Special order

    Special order Well-Known Member

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  18. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    Yes, with shared kitchen and laundry... So would you say 40m2 GF would achieve the same or more, or less? That one includes electricity, I would think most tenants are happy to pay electricity in their own place.

    As a landlord I wouldn't like to own one of these properties, imagine the electricity and water bill.... :eek:
     
    Last edited: 2nd Nov, 2015
  19. Special order

    Special order Well-Known Member

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    I would be looking for north of 250 for anything self contained that is well presented, higher if on a corner block with storage and garage especially if they have their own driveway or entrance IMO

    You advertise the electricity for reasonable usage and if they use to much just negotiate when the lease renews. Have a sparky attach a meter when he wires up
     
  20. Richard Williams

    Richard Williams Buyers Agent - Southeast QLD Business Member

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    I think the % return increases the smaller you go i.e. 40m2 vs 70m2, havent seen many separate 40m2 GF's advertised in Logan or Bris for that matter, more so the bigger ones. I think the smaller ones would have a demand as the rent is cheaper. I have looked for share accommodation for myself in Logan, I would jump at anything less than $200 a week for my own decent place with my own kitchen, most smaller places are complete dumps, usually a garage turned into a bedroom with a dodgy shower and toilet, under someone's house, not usually even legal height!