Would you really go granny flat

Discussion in 'Granny Flats' started by MTR, 16th Jul, 2015.

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  1. neK

    neK Well-Known Member

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    I would never sell it for what the bank values it at.
    I'm simply referring to the disconnect between the price it would fetch in an open market vs a valuer's opinion (given they have don't have many - if any - comparables to work with).
     
  2. MRO

    MRO Well-Known Member

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    I am approaching it from a different direction. I look for properties with existing GF's and then try to buy below replacement cost. As many are finding, the increase in value doesnt cove the build cost. To me this is a good buying opportunity.
     
  3. Phantom

    Phantom Well-Known Member

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    Agree. Expand the footprint for a growing portfolio.

     
  4. MTR

    MTR Well-Known Member

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    Also know a couple of forum members who have converted garages, if you can save big $ and it provides excellent cash flow, why not.

    Anyone here done this??

    MTR:)
     
  5. neK

    neK Well-Known Member

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    Curious to know how widely available houses with granny flats (that are properly approved) are for sale? And how are they priced?
     
  6. MRO

    MRO Well-Known Member

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    @neK - My investment strategy is basic and generally flawed by most peoples standards. I only buy in one area because I have a good feel for that area - the Perth hills. This area has a lot of granny flats that were previously built as studios, teenager retreats etc and the change in laws allow these to be rented to non related parties now. There are not a lot of new granny flats as far as i can tell but lots of older properties with granny flats that are not currently rented. Some need work to convert to a stand alone property so their is very little premium for this extra income potential. I have not bought any of these properties yet - so all this is theory.
     
  7. Gwynneth

    Gwynneth Well-Known Member

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  8. Biz

    Biz Well-Known Member

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    That's a completely stupid price for that. Guessing the person bought the property in the boom and now trying to get a premium price for it.
     
  9. Aaron Sice

    Aaron Sice Well-Known Member

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    I have found that adding a GF to a corner lot is okay because owners can provide carbays and a street appeal.

    it also works well in "affordability' areas.

    it doesn't work well in the general suburbs - in fact, at the REIWA courses i get all participants to raise their hands and i ask them to keep their hands up if they'd chop off their yard and rent it out - most lower their hands.

    i ask the remainder if they want to rent in someone else's back yard - normally most again lower their hands.
     
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  10. MTR

    MTR Well-Known Member

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    I have a g/friend who converted a shed into a 1 bedder g/flat, internet access is provided she is currently renting this for $350 pw. Her boyfriend is a carpenter and all round jack of all trades, he built another 1 bedder next to it at rear of property, same deal $350 pw. The property has a laneway, in Inglewood close to ECU. Neither have gone through council, anyway when she last advertised she has people lining up for them.

    My thoughts were anything close to Uni, hospital would also work well.
    Not a bad income.

    MTR
     
  11. WestOz

    WestOz Well-Known Member

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    Provided separate fencing, access, parking I'd keep mine up, I'm single so less cleaning and maintenance is a bonus, rented similar when younger so I didn't have to share a fridge, loo etc. In fact I'm currently planning to do it with a couple of my IPs.
    As for main dwelling yard size, many are too busy for big yards to mow etc these days, plenty of local parks maintained by council to utilise, as long as there's a bit of room for the little ones.
     
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  12. Aaron Sice

    Aaron Sice Well-Known Member

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    kinda reinforces my point perfectly :)
     
  13. MTR

    MTR Well-Known Member

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    certainly does:)
     
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  14. QbiK Evolution

    QbiK Evolution Well-Known Member

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    Hi everyone i thought i would share my story with the readers here at Property chat.

    I started with my first IP at 21 and have now grown to 3 IP's 1 GF & 1 more GF in for council approval as we speak.

    I have managed to achieve this piece by piece over the last 6 years slowly building up my equity. It has been hard as we all know prices in Perth haven't moved much in this time.

    Specifically the Granny flat part, I went to a bunch of builders to receive quotes for a granny flat here in Perth when i was looking to build and was shocked to receive numerous quotes of 150k each. Once I received these it obviously ruled out going with a typical build so I looked elsewhere. I'm a draftsman by trade and have always had a keen interest in Shipping container architecture so this is the path I took. I converted a existing double garage & single 20ft container into a studio unit. The costs of this work was around 40k as I was fairly thrifty using gumtree for labour and parts from other peoples renovations. ( its amazing what people in +2 million dollar houses will throw out)

    Long story short this property was designed and built by me for me, however extenuating circumstances have meant that i needed to move out. Since last year i have had 1 short term tenant 3 Months and now a long term tenant in place I never had more than a weeks down time which is quite amazing considering the styling is very specific to my tastes.

    When i had the house revalued the price had gone up a total of 60,000 and is now renting for 300 per week. By my calculations the granny flat will have paid me back in full within 3 years.

    Ill attach some photos below for everyone to see.
    This is achievable by anyone who has modest handy skills and i believe if you can complete a renovation you can build a container home. My next project is a 2 bedroom granny flat consisting of 2 x 40ft containers & 1 x 20ft.
    Also I have started a business designing and engineering container homes or granny flats so if anyone has any questions please send me a message.

    [​IMG]

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  15. Westminster

    Westminster Tigress at Tiger Developments Business Member

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    Looks great @QbiK Evolution , you have harnessed the industrial look and kept it rather than trying to hide it. Good job!
     
  16. Lacrim

    Lacrim Well-Known Member

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    Perfect - been thinking of doing this myself Qbik! How much do you think it would cost to completely outsource the build of a 2 bed granny using shipping containers? Also, I'm guessing if access to the rear of the house is a bit tight that shipping containers would be a no can do?
     
  17. HD_ACE

    HD_ACE Game-Changer

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    I like the bird :D
     
  18. QbiK Evolution

    QbiK Evolution Well-Known Member

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    Thanks HD ACE we love it to. Definetley goin to try so more graffiti at the new place.
     
  19. QbiK Evolution

    QbiK Evolution Well-Known Member

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    Hi Lacim its really hard to know what some one would charge as most builders are afraid to tackle the unknown unless your paying a premium i.e architect level projects. My aim is to help people tackle this as an owner builder project as i can provide construction details and problem solve along the way just like a real project manger / architect would do.

    I would never say never when it comes to access my build was created for a tiny budget and i had a 150t crane parked on my street to get the job done. Im lucky in that im not on a main road so closing down one part of my culdesac wasnt an issue. It may seem like a lot of money I believe my job was 2k but it only takes and hour and its alot cheaper than pouring a slab + brickwork or building walls the old fashioned way. Heres a quick snap of my container being dropped in place.

    [​IMG]
     
  20. Daniel007

    Daniel007 Well-Known Member

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    Fantastic concept, it looks really nice.

    Are there any issues with the possibility of rust in the long term of the container and if so, what has been done to reduce the likelihood of this happening?
     

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