New trial Granny Flat rules for Victoria

Discussion in 'Granny Flats' started by craigc, 18th Sep, 2020.

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  1. Ash Oz

    Ash Oz Member

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    Yes we have this in NSW same size 60sqm rule and it worth doing for better cashflow. Hopefully trial had a good outcome and it is allowed. AHSEPP Fact Sheet- Granny Flats 20111219 (grannyflatbuilders-sydney.com.au)

    I build one in NSW and my front tenant loved it as they kept asking when their relative can move in. Now their relative has moved in. Cost to build $120K low specs renting for $350 pw gave it below market as wanted to keep front and back tenants happy. This is in cheaper area some areas you can rent them for $500 pw.

    You can fit alot in 60 sqm. Mine has 2 bedrooms and an ensuite too. Outside is cladding not brick as it takes away from internal space. I was going to travel and live there when not travelling but when Covid hit. Bye Bye travel so decided to rent it
     
    Last edited: 18th Jun, 2021
  2. euro73

    euro73 Well-Known Member Business Member

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    Secondary Dwelling Code
     
  3. Luca

    Luca Well-Known Member

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    Thanks mate
     
  4. Whitecat

    Whitecat Well-Known Member

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    Suncorp do it under a strata policy at a good price (in NSW). I am very happy. But yes many insurers didnt really have a good way of dealing with gfs on seperate leases.
     
  5. Luca

    Luca Well-Known Member

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    Do you guys see the granny flat industry booming if the law gets passed?
     
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  6. euro73

    euro73 Well-Known Member Business Member

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    AAMI , CGU and NRMA are just 3 insurers who my clients and I ( I own Dual Occs too) seem to have no issue finding insurance with.
     
    Last edited by a moderator: 19th Jun, 2021
  7. euro73

    euro73 Well-Known Member Business Member

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    it will take a while to get going , just as it did in NSW , but it will follow the trend in NSW and become quite popular
     
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  8. Luca

    Luca Well-Known Member

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    Maybe the right time to start a granny flat company ;-)
     
  9. craigc

    craigc Well-Known Member

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    No update yet from the Vic trial that I can find published from google searches.
    Note trial period ended March 2021 so should be some feedback/update by now I would have thought.

    Note trial still requires the garden space requirement as per zone of the property (eg 30% for some zones). Also given low yields in Melb/Vic the rental return for product may not be as good as in NSW/Qld.

    Will be interesting to see where this leads.
    I’m watching.
     
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  10. craigc

    craigc Well-Known Member

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    Update from a planning contact - no further news as yet. After the initial 6 month trial it will take a while for review and issues / revisions required before any further announcements.

    Basically it’s only 3 months since the trial period ended so is still in review by the government planning teams and we will need to wait to see where it goes next.
     
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  11. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    I reckon you can get 2 bedrooms from that or at least a bedroom and a study/bedroom.

    Didn't realise that they were not legal in Vic as I rented one in the early 90s when living in Melbourne whilst touring Australia which explains the cash-only policy from my greek LL.
     
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  12. Luca

    Luca Well-Known Member

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    Thanks for the update, I think it will happen, big ? is when however it looks like we are close...
     
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  13. Lucas100

    Lucas100 Member

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    Yeah I wrote to the planning minister and got a reply stating the a decision was imminent. That was 3 weeks ago. I think we will have an outcome by the end of the year at the latest. Fingers crossed
     
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  14. bamp

    bamp Well-Known Member

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    I used to live in a Western suburb of Melbourne where it seemed there were more houses with "independent Bungalows" than without. Council appears to have a don't ask, don't tell policy, but would be good if govt could just okay this to increase the supply of affordable rental property onto the market and also give safeguards to tenants as they wouldn't need to be under the table.

    It's a win-win in my book if they allow this, but knowing government, that's probably enough to shut it down :confused:
     
  15. Luca

    Luca Well-Known Member

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    There is no issue with building it unless you don`t ask for council approval and go illegal, but the same can happen for a carport, extension, and so on. Don`t understand the "don`t ask, don`t tell". The current problem is with renting it.
     
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  16. Colin Rice

    Colin Rice Mortgage Broker Business Member

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    I was in the Williamstown/Newport area in the mid 90s not too far from the Westgate bridge. I was in Melbourne a couple of years back and had some spare time so took a visit, things have changed for the better, so it appeared.
     
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  17. bamp

    bamp Well-Known Member

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    That's quite a nice area, williamstown is the best suburb in the west IMHO.

    I lived MUCH further west :)
     
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  18. Lucas100

    Lucas100 Member

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  19. Lucas100

    Lucas100 Member

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    Hi Just received a letter from.the planning minister and the trail has ended and at this point in time it won't be rolled out state wide. Further analysis needs to be undertaken. It doesn't sound promising at least in the short term. Guessing nothing will eventuate for a while.
     
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  20. samBH

    samBH New Member

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    Let’s just hope this gets through.Don’t understand why Victoria would be so different to the rest of Australia!! So much untapped potential to ease the housing issue.
     

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