https://www.youtube.com/watch?v=dG7Y649K690

Granny flats can be a great way to add cash flow to a property and even create positive cash flow. But there are some things you need to consider before going ahead and building a granny flat

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0:00 - Introduction0:25 - #1: Does this fit into your strategy0:55 - #2: Can you legally build a granny flat in your area and on your block2:33 - #3: Are you going to be able to rent out the granny flat7:44 - #4: Make sure the tenant in the main house is aware there will be a granny flat added in the backyard9:08 - #5: Do you have the money to build the granny flat11:37 - #6: Consider which builder to choose12:35 - #7: Ensure your build is a fixed price contract13:46 - #8: What is your end goal and does this line up with your exit strategy16:04 - #9: How will this affect the speed of sale of your property16:53 - #10: How are you going to provide access and privacy to the property + what optional extras will you choose?20:02 - Make sure you do your due diligence before investing in or building a granny flat

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Transcription:

Ryan 0:00Granny Flats can be a great way to add secondary income to a property and maybe even turn that property into a positive cash flow property. But there's some things that you need to consider before you go ahead and invest in a granny flat. So today I'm joined by Simon Everingham, buyer's agent from Pumped on Property. Just to talk about that, what do we need to consider before we actually look at building a granny flat on our property,

Simon 0:25I think the first and major thing that you need to consider is your strategy and how that particular project is going to come into play for your long term plan for your property portfolio. So you know, at different stages of your journey, you may need certain assets within your portfolio to achieve the property investment goals that you're looking for. So making sure that you understand exactly what that property is going to serve you for is probably the most important aspect. Yeah,

Ryan 0:52and also, the really early stages, as well as understanding whether or not you can legally do this. So in some areas, like in Victoria, I don't think at this point in time, you can actually legally build and rent out a granny flat, and even up in Queensland, up here in Brisbane, and there's some councils where you can do it, and then there's some councils where you cannot do it. So it's really important to understand the legalities around it because every Council is different.

Simon 1:20That's exactly right. And it's very easy to go and find out this information, you can literally just jump onto the local council website you can call a town planner in that particular suburb or area. And now two minute conversation get a My name is john, I'm looking to invest in a property however, I want to create Julie income from that property. Am I legally allowed to add a granny flat or build a two dual income home brand new in this area? And that will be able to give you that indication straightaway.

Ryan 1:51Yeah. And then they'll also be able to tell you, okay, what are the requirements that you need to meet in order to build that granny flat, like, there's often requirements around how big the block of land needs to be. So you need a certain size, sometimes a certain street frontage as well, as well as looking at how big the granny flat can be. So there's restrictions on how large of a dwelling that you can build. I know for a lot of one of those up here as I feature five ...