How do you make extra income from building a Granny Flat in Brisbane? Read on for all you need to know.
What is a Granny Flat?
A Granny Flat is a self-contained home built on the same property as the main house. It is usually fenced off from the main house and can be detached or attached to the original dwelling.
They are not more than 50-60 square metres in size (in Brisbane) compared to the main home but local councils will dictate the size and other requirements. They are called Granny Flats as they were first built to house aging parents next to their families.
What does a Granny Flat offer for Brisbane Investors?
For Investors, Granny Flats offer the advantage of more rental income from a property you already own with another set of tenants, massively boosting the property’s rental yield; as well as the security of another income from the same property. It also offers accommodation to elderly family members.
Where can Investors build Granny Flats in Brisbane, Qld?
Granny Flats in Brisbane, Qld can be built either on your home’s property or in your investment property’s backyard but there are rules relating to this and they vary from council to council. A local building certifier will know the local criteria relating to the possibility of building on your property.
What are the Council Requirements In Queensland?
As rules vary from state to state and council to council, research is vital. In Queensland, lot sizes and home dimensions, as well as who can live in Granny Flats, varies from council to council.
Council approval may not be required depending on where you intend to place the new dwelling, however large trees, bushland, wetlands, sewer lines etc can all hamper the approval process.
Height specifications and parking requirements, as well as maximum site cover, must also be adhered to so employing the services of a building certifier is recommended before works on a Granny Flat begin.
How much does it cost to build a Granny Flat in Brisbane, Qld ?
Obviously the costs will vary depending on the size of the dwelling, specifications and what you require in the plan. Options are flat-packs, pre-fabricated and custom-designed dwellings. Costs will vary depending on the purpose and quality.
How do I finance building a Granny Flat?
With high rental returns as you already own the land, you just have to pay for the construction costs with either cash or a loan from a bank. If you are planning on borrowing make sure your credit score is in order.
If you have equity in a property, you may wish to borrow the entire amount required to cover 100% of the construction costs or if you don’t have enough equity, you will need to get a construction loan from your bank that may or may not require you to add some money as a deposit.
As interest rates and valuations between banks will vary, you may wish to look to different lenders for what they can offer you so as to acquire the best deal. You might wish to refinance your existing loan with a new credit provider with better terms.
Step by Step Process to Building a Granny Flat in Brisbane
- Assess your properties land size, street frontage, large trees, bush fire restrictions, heritage laws and more.
- Order a copy of the Survey plan.
- Speak with the council, town planner, builder or certifier about the likelihood of getting approval.
- Obtain Finance pre approval.
- Survey and soil test. A surveyor is sent to the property to check on boundaries, neighbouring property, easements and aspects.
- Building Designer comes up with a preliminary design and location for the property. You approve the design.
- Construction cost quote. The builder will supply a detailed and lengthy quote based on your needs and specifications.
- Contract with the builder is signed and you pay a deposit.
- Working drawings and engineering done.
- Private building certifier approves the plans for construction. Neighbours are notified fourteen days before certification and then a week before building commences.
- Builder constructs home. Once everything is approved, construction begins. This takes from ten to twelve weeks. The site needs to be cleared, and existing structures like a garden shed demolished.
- Practical completion. Once the Granny Flat is fully built, the builders usually complete the final inspection with the owners and get their final paperwork in order. From the initial consultation to final inspection, the process can take about six months.
Investn can lead you through this process in the Brisbane market.