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Thoughts on adding GF's in Ipswich/Logan

Discussion in 'Development' started by Jmillar, 27th Mar, 2016.

  1. Jmillar

    Jmillar Well-Known Member

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    Hi guys,

    There are a few threads already on GF construction types etc but I wanted to know peoples' views on the viability of them financially, and when it would be most suitable.

    Some people tell me you can get a 90% construction loan for a granny flat, while others tell me you can't, while others say you might be able to, but there would have to be comparable evidence to help the valuer value it up. I personally can't seem to find any house + granny flat combos that have sold in Ipswich or Logan areas to help support numbers.

    Just wondering if anyone has added GF's to properties in Logan or Ipswich council and what sort of finance they got for the construction?

    I'm still in acquisition phase so probably wouldn't do it until later on, when I have a portfolio of properties and I have a lot of cash/equity I want to turn into cashflow. By this stage, it won't matter if I can only finance 50% of the construction....

    If it is viable down the track, then this will obviously prompt me to buy bigger blocks for the future upside potential.

    Thoughts?

    EDIT: I'm told that you can put up to a 2bdr, 70sqm gf on a 700sqm+ block in Logan, and 3bdr, 100sqm on 1,000sqm+ block. Is this correct? What are the rules for Ipswich council?
     
  2. Jmillar

    Jmillar Well-Known Member

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  3. RetireRich101

    RetireRich101 Well-Known Member

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    I remember 50m2 for Ipswich council that the revised about 12 months ago. No way 50m2 can do a 2 bedder
     
  4. MTR

    MTR Well-Known Member Premium Member

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    Becareful that this product g/flats are easy to rent in this area.

    G/flats if in wrong areas, State, demographic may take much longer to rent and instead of cashflow positive you turn out negative. I have been down this road, I just flicked the property 12 months later
     
  5. HUGH72

    HUGH72 Well-Known Member

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    With property in many Ipswich suburbs sub 250-300k for a 3 bedroom house on 600m+ I doubt it would make much sense There is little rental pressure presently with numerous listings in the sub 300 per week price range. Even cheaper rents are listed for some of the newer NRAS stuff.
     
  6. RetireRich101

    RetireRich101 Well-Known Member

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    In NSW it is 60m2, still a concern being a dog box. but not much choice in Sydney as rent is expensive.
    In Logan, it is 70-100m2. If cleverly built on say corner lot, or regular lot with big side access, it's just like another dwelling if privacy certain.. Good for smaller family, easy to rent on low on $300. renter like new as well.