What can you get from granny flat investment?
Wally Gebrael: This is a two-bedroom granny flat, 60 square meters. The owners came to us looking to generate a bit of income. They had this backyard which they have never used which is all grass, a lot of time and money to maintain and they just didn't have that from time to time so...
But building a granny flat it's a habit not to generate a bit of income from it while still having your own main backyard for themselves.
This one that you are looking at now costs $102,000 to build, that's complete with all their design, the approval, the construction and that's now the hand-over price that's ready for them to move in. You're ready for them to rent out.
What type of investors are building granny flats?
It's the young couple both are working full time. Again, don't have the time to do some maintaining and they've got work five days a week.
This today was ideal because it just first of all, it generated income and you know, you don't have to work to maintain this yard anymore. It now becomes almost impossible for new tenants to just maintain this part portion of land now.
Initially they bought this property to build, to do a dual occupancy actually. Built two separate houses, subdivided, someone without the cost to do that and it was about $30,000 just in subdivision cost before they could even start building. So that was one fact that we should make them think that potentially this may not be the best option. So by doing a granny flat for their investment, the returns went out far better.
How easy are they to get approved?
The greatest thing about granny flats is that there is no formal council approval any more requirements. There is our New South Wales government policy which allows you to build granny flats while going through private certifiers and not going through councils. So it's sort of a “one rule fits all council type” policy. So it didn't matter whether this was asked with or had it been paramount to any other account. We complied with all the guidelines so it was quite easy to have it approved.