Unregistered Granny Flat worth purchase?

Discussion in 'Granny Flats' started by Medusa, 15th Mar, 2020.

Join Australia's most dynamic and respected property investment community
  1. Medusa

    Medusa Well-Known Member

    Joined:
    11th Sep, 2019
    Posts:
    45
    Location:
    Brisbane
    Hi Guys,

    I'm considering purchasing an old 5Bed house with granny flat built in rear. Flat has its own seperate driveway and is completely fenced off from main house. The price is extremely attractive under 300K (if I could rent separately I'm talking close to 10% yield), catch is the granny flat is not registered and there are no plans available. I inspected the granny flat build looks well done. Footings, stumps and pluming look good as well as correct legal spacing to boundaries.

    I called a local building certifier who said I would have to get plans drawn up, get a builder on board to take 'ownership' of build for insurance purposes and it would cost me best case under 10K but worst case up to 30K.

    Has anyone here had similar issues and what they did about it? I'm happy to pay say upto 20K to get all issues solved, but I cannot be given a 100% yes answer from council so I'm scarred to take the leap. Agent has hinted that because it is not a capital city and council is not so strict I could just get separate water and electrical meters installed and rent it out separately without any issues.

    Cheers for any advice.
     
  2. euro73

    euro73 Well-Known Member Business Member

    Joined:
    18th Jun, 2015
    Posts:
    5,373
    Location:
    The beautiful Hills District, Sydney Australia
    Make it a condition of the sale that the vendor organises it - agree to pay them 20K more .
     
    Beano likes this.
  3. Alex Harnden

    Alex Harnden New Member

    Joined:
    25th Mar, 2020
    Posts:
    4
    Location:
    Springwood
    When was the granny flat built approx? Who built it any idea? Does the vendor have Form 21 Certificate of Completion for the GF?
     
  4. Scott No Mates

    Scott No Mates Well-Known Member

    Joined:
    18th Jun, 2015
    Posts:
    20,330
    Location:
    Sydney or NSW or Australia
    Is that permissible in the Council area?
     
    Propertunity likes this.
  5. Patrico1966

    Patrico1966 Well-Known Member

    Joined:
    12th Jun, 2019
    Posts:
    399
    Location:
    North perth
    Be careful of the eye in the sky. Council will have historical pictures and may use this against you plus any documentation they may have on record. Would not rely on the agents word in such an important issue.
     
  6. Propertunity

    Propertunity Exclusive Real Estate Buyers Agent Business Member

    Joined:
    19th Jun, 2015
    Posts:
    3,472
    Location:
    NSW
    +1 for this ^^