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Or for those that prefer to read, here is a transcript of the video…
So how much is a granny flat? My name is Colin Fragar from Council Approval Group. If you’re asking that question, I’d ask you to take a step back and ask another question first.
A Better QuestionAnd that is how much will the granny flat earn me? Because what I’ve found in my experience, having done a number of these for myself plus thousands now for clients, is that the rental return is so attractive that it just makes the cost of decision on how much to spend on the granny flat almost irrelevant. Having said that, please remember that if you go for a budget build, you will be going for a budget rental.
…if you go for a budget build, you will be going for a budget rental.
ExampleIf you want a premium tenant, if you want premium rental yield, you’re better off to spend that extra $50,000 to build it and create something like this. So this is a project that I did for myself. This rents for a real premium over $400 per week in a suburb where a three bedroom house rents for $400 per week. So I’m almost matching that with just a two bedroom granny flat because of the premium fittings, fixtures, etc. How much does it cost, it can be anything between $1,000 to $3,000 per square metre.
Next StepsI would recommend if you’re just starting out is to grab Your Ultimate Guide to Council Approval. This will give you some step by step tips and tricks about granny flats and it’s my gift to you. We encourage you to contact us if you do actually have a project in mind or if you’ve got a site you want to know:
- Is a granny flat the best thing I can do here?
- Is there something more or something larger that I can do?
- Maybe a different development type?
- Maybe we can subdivide it?