Are you considering a granny flat and wondering how much does a granny flat build cost? In this video, Colin Fragar, our founder and CEO, shares information about granny flat costs.
Click on the “Play” button below to watch now:
Or for those that prefer to read, here is a transcript of the video…
So how much does a granny flat build cost? My name is Colin Fragar from Council Approval Group. I’m in the studio today answering questions and I’d love to be able to give you some tips and tricks. It’s not just what you might be able to find on the internet in terms of prices and various granny flat manufacturers. Often people make mistakes and I don’t want for you to make the same mistakes.
Determining Granny Flat Build Cost
So what are some of those mistakes? The first mistake that I see people make when they’re costing their granny flat is they’re asking probably the wrong question. It’s not how much does a granny flat cost to build, it’s how much return on investment will I achieve. And we really want to begin with the end in mind.
Costing a Rental
So I’m presuming that you will be renting this out and you want to maximize your rental income. If you’re looking for this for a family member, then just park that thought and I’ll come back to that. But if you’re looking to be able to maximize your rental income, what I found with my own personal projects is, we get a better rental price if we put a little bit more money into the build cost, if I haven’t gone for the cheapest builder, if I haven’t gone for the cheapest build, if I haven’t built just a prefabricated little tin shed and it looks like it. And people are quite discerning. They say that people want to downsize but not downgrade. And what I have found in my own personal portfolio is if you create a premium product you get a premium rental price.
It’s fascinating to think that I could almost achieve the same rental price for a premium granny flat as I can for a standard basic house.
So the return on investment equation is quite in your favor as a granny flat producer.
Other Tips and Tricks
So other tips about granny flat build costs. Also, I would recommend that you don’t go down the line of finding a builder that does the approval process for you. And the reason is this, if you hire a builder to do the approval:
- They probably won’t get the quickest path to approval, because they’re not specializing in approval processes. They’re usually specializing in the building. That’s fair enough, they construct their builds.
- Also, they won’t be looking for a better use for you. So you may also have the opportunity to do a Dual Occupancy or Dual Occupancy subdivision, etc.
- And the third big reason is, if you engage a builder, you won’t have the opportunity to tender out the project later. And so what I’m saying to you is if you were to get your own council approval through the Council Approval Group, then you can get that in place, then you can tender out the project to 10 plus different builders and have your choice at the lowest possible build cost based on hopefully your premium granny flat that we’ve achieved council approval for.
Regardless of whether you’re going for a premium granny flat, whether it’s to maximize your rental income, whether it’s for your own family member, I highly recommend, if you haven’t already, that you grab Your Ultimate Guide To Council Approval. This is an awesome guide with a bunch of tips and tricks in here that you’ll really learn a lot from.
And if you do have a property in mind and you are serious about really taking control of your financial future, then I highly recommend you claim your free consult with one of our team at the Council Approval Group. My name is Colin Fragar and thanks for watching.