Logan Granny flat build planned during corona

Discussion in 'Investment Strategy' started by YoungBull, 23rd Mar, 2020.

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  1. YoungBull

    YoungBull Well-Known Member

    Joined:
    29th Sep, 2015
    Posts:
    58
    Location:
    NSW
    Hi PCers,
    Obviously we don’t know how bad things will get with the current and ever changing virus and how it will effect logan but I’m close to building two granny flats on my properties in Beenleigh. I will shortly have council approval and the fixed price contract off a private builder to make it more cost effective should arrive shortly after. I have chosen this strategy as my life situation has changed with another young child on the scene and cash flow now becoming important. I know there is age old debate on here with GF in logan but this is more so if building in such unknown times is seen as risky or if your strategy suits you and your in for the long term you shouldn’t let these current times worry you?
    Do times of recession make these more affordable areas more appealing with people needing affordable rents?
    It’s a real shame amongst many other reasons for everyone why this timing of this pandemic is bad as I felt south East Queensland was really getting some momentum with there property market.
    Any feedback would be great
    I hope everyone gets through this period
    Cheers
     
  2. Closet

    Closet Well-Known Member

    Joined:
    23rd Oct, 2017
    Posts:
    360
    Location:
    Australia
    Ultimately it comes down to numbers and your due diligence of the product in your area. If your numbers stack up and give you the outcome you want who cares what others think :). A well built gf can be very easy to rent it's more the existing dwelling needing to remain private that can be the bigger issue...
     
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  3. Alex Harnden

    Alex Harnden New Member

    Joined:
    25th Mar, 2020
    Posts:
    4
    Location:
    Springwood
    Closet is right in saying that you should do your due diligence on the product in the area. A lot of investors opt out for a timber floor on posts construction, predominantly because it is cheaper to build. However, we have noticed a shift towards concrete slab on ground and brick veneer construction. According to the owners, the banks tend to value these types of granny flats a bit higher. From a rental perspective it appears that these also achieve slightly higher rents. We have done a few of these in the Marsden area and I can say that the cost to build these is not much higher than the timber floor on posts granny flats. Something to consider if you wish to re-value your properties at a later date for extra equity gain.
     
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