QLD Logan Granny Flat

Discussion in 'Where to Buy' started by mick0123, 23rd Jun, 2017.

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  1. Chris White

    Chris White Well-Known Member

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    Good questions.

    The point of this exercise is that an existing house was purchased on a 900sqm corner block for $345,000. To increase the cash-flow we constructed a GF. The GF construction attracted zero stamp duty and it can be separately titled which will create an uplift in value. Even if the cash-flow was the same as buying a unit, the uplift in value potential from strata titling the GF will work out much better than the organic capital growth from the unit.

    Important to note that you must meet the 'duplex requirements' for the block for the above to apply (i.e. to have the option of separately titling). We wouldn't just build a GF without having other options. So site selection is critical.

    We are leasing these properties very quickly. People like the idea of a detached (new) dwelling with plenty of space and some enclosed yard area for a small child or small pet (much better than a unit).

    Yes, high-sets are permitted and this was certified as appropriate.

    Its important to note that site selection and layout is very important. I have seen some very dodgy set-ups where there is a lack of privacy etc... and these properties do struggle with tenancies.

    Also, its important to note that this isn't for everyone and should form part of an overall strategy within your portfolio.
     
    Last edited: 6th Aug, 2017
  2. Anthony Brew

    Anthony Brew Well-Known Member

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    By the way, is Logan considered a regional area?
     
  3. Sea Eagles88

    Sea Eagles88 Well-Known Member

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    When you say "we are leasing these properties very quickly" are you saying there are a lot of 900sqm corner block type ?

    I am looking at a high yield strategy. Looking to add granny flat to my house on 650sqm land. Did not have intention of doing the granny flat build when first purchased. Coming from Sydney a 6% yield on the house is comparatively good. But just wondering if it will possible to increase overall yield by adding granny flat. But not so sure if its desirable and easily rented out.
     
  4. Chris White

    Chris White Well-Known Member

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    Its metro about 25km to 30km from Brisbane CBD - think Blacktown in Sydney.
     
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  5. Chris White

    Chris White Well-Known Member

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    We have leased our last few GF's at the first or second open house for $320pw to $330pw. I have tried to put caveats in above posts though - they have to be well laid out; below is another example (low-set this time).

    Separate access, privacy, parking etc..........

    [​IMG]
     
    Last edited: 6th Aug, 2017
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  6. Biz

    Biz Well-Known Member

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    What was the build price on this one Chris? Any interior shots?
     
  7. Chris White

    Chris White Well-Known Member

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    $123k build price + $10k (landscaping, blinds, security screens / door, a/c).

    Again, can duplex with the main house plus subdivide as well - so 3 titles.

    [​IMG]
    [​IMG]
    [​IMG]
    [​IMG]

    [​IMG]
    [​IMG]
     
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  8. Blueskies

    Blueskies Well-Known Member

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    Speaking with a builder today regarding a granny flat build in Logan. He was strongly encouraging me to build as a secondary dwelling rather than the granny flat/auxiliary unit classification. Main reason being that you are not limited to the minimum floor size and 2 bedroom configuration.

    A quick Google and read of the LCC website suggests that this is possible but that the end product is for use by members of "the same household". Am I correct that this would be unable to be legitimately rented under a separate lease to separate parties or am I missing something? Probably insurance issues too if leased this way?

    He reckons he has done several of these for rental to separate parties but time has taught me that just because something is being done doesn't mean it should be!
     
  9. Chris White

    Chris White Well-Known Member

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    - wise thoughts!

    I must have been speaking to the same builder. You don't want to receive a letter from council one day asking you to explain the relationship of the tenancies at your property - not worth it.

    Also FYI, Logan City Growth Committee met recently and recommended the following;

    1. That the policy position for auxiliary units be amended to include:
      1. applying infrastructure charges; and
      2. amend the definition of auxiliary unit to include :
        1. a minimum lot size of 700m2;
        2. a minimum road frontage of 18m.
    2. That Council resolve to prepare an amendment to the Logan Planning Scheme 2015 to incorporate the policy positions as outlined in clause 1 above.
    3. That Council grant the use of the Sustainable Planning Act 2009 and Planning Act 2016 –Amending Local Planning Instruments delegation to carry out all necessary actions required under the Minister’s Guidelines and Rules to complete the amendment and to prepare and adopt a consolidated planning scheme incorporating the proposed amendment.
    4. That the Economic Development & Strategy Manager be requested to consult with the Chairperson of the City Growth Committee in respect to actions carried out under Clause 3 above.

    Adopted by Council at its meeting of 17/10/2017 Minute No 302/2017


    The Council have advised that the new infrastructure charges will come into effect on 1 July 2018.


    In respect to changing the planning scheme to reflect the new lot sizes, etc., this will take some time to effect. I anticipate between 12 and 24 months.
     
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  10. Invest_noob

    Invest_noob Well-Known Member

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    I'm hoping someone can point me in the right direction,

    I have a 620sqm block in Logan and am wondering if there is a minimum block size requirement to be able to build an auxiliary unit at the moment? I am aware that this is going to change to 700sqm minimum in July 18. I've looked on the council website but couldn't find a minimum size.

    The property is in a low density residential zone, what kind of approvals are required and how long do they take to obtain?

    What do the approvals cost?

    If I get the approvals now and the rules change, would I need to get re-approval?

    I was thinking of getting the required approvals now and not necessarily build the secondary unit but just have the approvals, which will be valuable at the time of selling. How long are the approvals valid for?
     
  11. HapppyChat

    HapppyChat Well-Known Member

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    Is this a 2 bedroom granny flat? $460 seems huge when people can rent 2 bedders under $300. For such an expensive build is it something out of the ordinary? Thanks.
     
  12. HapppyChat

    HapppyChat Well-Known Member

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    Thanks for sharing your stats. $310pw is a nice return on a $124k build. I am in this situation, can't get finance for another IP but am looking to build a GF next year in Waterford West to increase cash flow. As the Council crack down, it looks more like July 2018 will be the deadline to avoid the new $23k infrastructure fee.
     
  13. HapppyChat

    HapppyChat Well-Known Member

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    Thank you for posting this Chris. This is the difference of having someone with their finger on the pulse of an area and being an outsider unaware of potentially deal changing information. A deadline has now been set to be stung the $23k. It will be vital to investors (and to your business of course) to find out the rules of the game. What should investors have completed before this deadline to avoid it? e.g. approvals, started the build, completed to lock up...?
     
  14. FullRun689

    FullRun689 Well-Known Member

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    Has anyone ever used the KIT home by i-build?

    www.i-build.com.au/.



    it appears to be cheap and quick.
     
  15. Lincsus

    Lincsus Well-Known Member

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    Its not cheap. The cheapest 2 Bedroom granny flat *56 square m) is $102,000 + GST if you include the labour cost for assembly. That is $112k for the granny flat. I can get a 60 sq metre standard build for 100k in Sydney.
     
  16. mickyyyy

    mickyyyy Well-Known Member

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    What suburb did you get that sort of rental return and is your granny a flash 2 bedder for 200k?
     
  17. Scott Townsend

    Scott Townsend Well-Known Member

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    Hi mate

    It’s in Kingston

    The design is what creates the extra yield yes :)

    Scott
     
  18. mickyyyy

    mickyyyy Well-Known Member

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    Can you share pictures as im intrigued :)
     
  19. gach2

    gach2 Well-Known Member

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    you could also get $1000 pw from a 200k investment if you got a few 'utilities rooms' in your design then rented it room by room
     
  20. 11160

    11160 Member

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    Our semi detached granny flat on the coast is renting out at $290 p/w, paying for more than half our mortgage. It is absolutely a good idea and you are ahead of anyone with a normal 3 or 4 bedroom home.

    Ours is 1 bed around 60m2. Was appraised for $310 by the real estate. Just be aware of the regulations. If it is attached you will need fire separation and it is essentially a dual occupancy dwelling at least on the coast. Keep in mind that it should be under certain sizes too. FAQs Renting these out is frowned upon too.

    Remember it would be cheaper to build attached, but not as desirable.