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Navid Guia - Granny Flat #4 McGraths Hill

Discussion in 'General Property Chat' started by Navid H Guia, 27th Dec, 2015.

  1. Navid H Guia

    Navid H Guia Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    53
    Location:
    Sydney NSW
    Granny flat #4, although technically I received the OC before #3 (recently posted).

    This one is only 30sqm.

    Disclaimer: I am completely aware that there are better ways to invest, and I had little to do with the planning of this one as it was on the back of my dads property (the property I use to put my subway money into to save as a 17 year old - nostalgia).

    Granny Flat Breakdown:
    Soft Costs (Architect, CDC, HOW, etc): $10,000
    Contract Cost of Construction: $60,000
    Variations + Additional Works: $21,000
    Fittings (Blinds, AC, Clothes Line, etc) : $5,000

    Total Cost: $96,000
    Rent: $250/week (rented 1 week before Christmas, applications on first viewing)
    ROI: 13.54%

    Lessons Learnt
    Construction:
    - Had footing issues, and a drainage line running through the back, required deep piers. Delays at Council, etc. Cost of that alone was $3,000 - 4,000 (don't have my spreadsheet one me atm).
    - Property was large enough to allow a 60sqm granny flat, however my dad is a sentimental old fella, and wanted to make a small footprint leaving the main house essentially intact for the current tenant.
    - I'm doing some personal/private study on better design and believe this would have been a great opportunity for a well thought out Tiny Home design. Unfortunately due to personal circumstances I wasn't too involved with this one. Use of a cottage style facade, sliding doors, and a loft style construction would have made this an amazing residence to rent out, and likely achieved a significantly higher rent.
    - There are no rentals at this price bracket in the area, the next cheapest I saw at the time of viewing was $350/week. So I believe there is certainly a market for lower priced rentals in this area.

    This house was purchased 12 years ago, so doing an analysis on ROI would be irrelevant, if purchased now (Dec 2015), with granny flat, likely only 6.5% ROI.
     

    Attached Files:

    Adele and Kangaroo like this.
  2. S.T

    S.T Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    428
    Location:
    I'm not selling anything
    Whats the reason you put your name in the subject of the post?
     
  3. Navid H Guia

    Navid H Guia Well-Known Member

    Joined:
    20th Jun, 2015
    Posts:
    53
    Location:
    Sydney NSW
    There are other granny flat threads between here and somersoft.

    Just to differentiate between my projects and the other ones. Thats all.