Office/teenage retreat of granny flat

Hi Guys, first time poster and first time property investor as of yesterday so I'm just an apprentice. We bought an investment property yesterday at auction in hillcrest returning about a 5.6% yield. It's a three bedroom, two bathroom brick veneer house with a driveway down the side leading to a detached double size brick garage. I'm in the building industry so I'm just wondering if it's a good idea to convert the garage to a teenage retreat/home office? or try and get approval and convert it to a granny flat?

Regardless it will be tenanted to the same people as it's not big enough to separate and fence off for two families. I'm looking to get the best rental yield as it's a long term investment.

How much more value do you think it will add in terms of rent in either direction that we go in? I.e. Retreat/office or a granny flat?

 

I'd only convert it to a granny flat if it can be done easily and then rented separately. This would add significant value and rental yield would be increased.

 

First thing to do is to get in touch with the area council and find out what is allowed.
Marg

 

According to Logan council you can rent it out separately but you need to provide 4 car spaces. Two for each dwelling. But if it's just proposes as a separate dwelling whereas it needs to be tenanted by the same people, you only need to provide two car spots which would work. I don't know if this is just a small technicality and can be bypassed. I'll give Logan council a call tomorrow.

 

Alan, do you think it's not worth trying to aim the rental at a larger family if I can't tenant seperately? I could potentially convert it for $40000 and aim for just an extra $150 a week
This would bump up the yield to close to 7%

 

I rather suspect that you are not going to get another $150pw in rent for an extra bedroom/studio but ask a couple of local PMs for their rental appraisal.