5 Handy Tips for Granny Flat Investors
Building a granny flat is a great strategy to create a positive cash flow on a property investment. But only if you do it right!
Below are some key attributes investors should look for when selecting a property to build a granny flat or when assessing if their existing properties are suitable for a granny flat.
1. Make sure the potential property meets the minimum size requirements of 450m2 and a 12m frontage at the building line.
2. Look for corner blocks where possible so the granny flat can have street frontage. This will help achieve a better rental return. Privacy is the key to maximising returns so if you cannot find a corner block then look for good side access so potential tenants can have their own private entry.
3. Review the 149 certificate for the property to identify if the property is in a residential zone. The check if the property is in a flood, fire or mine subsidence area. If a block is subject to any of these issues you may not be able to use a complying development certificate (CDC) in NSW. If this occurs you will then need to go through the Development Application process with council, which is more expensive and is a much slower than a CDC.
4. Identify properties that are either flat or have a minimal slope (ideally toward the road to reduce stormwater costs). Flat blocks keep your building costs to a minimum.
5. If the property has major trees (over 4m in height), ensure you can build the granny flat in a location at least 3m from these trees. If you are unable to then you will need to apply for a separate council approval to have the trees removed.
Once you find the right property the next step is to find the right builder. To ensure that you do gain a return on your investment you need to select a reputable granny flat company, which is a licensed builder. Be aware that not all companies are the same!