Property Investment with High Return on Investment (ROI)

Property Investment

Tailored Granny Flats are ideal for Property Investors & Landlords who want to earn amazing returns on their investment and simply make more money. Other forms of investment, such as the stock market, are far less attractive options and can’t match the high rate of Return of Investment (ROI) achieved by property investors that have built Tailored Granny Flats on their properties.

Since the new Affordable Housing SEPP was introduced in 2009 the vast majority of Tailored Granny Flats that have been built have been for property investors that were looking to achieve a second rental income from their property.

BENEFITS OF A Tailored Granny Flats (in most cases)
  • Earn more money (usually over $1,000 a month after interest payments) by generating a second rental income the legal way.
  • Achieve a return on investment (ROI) of around 20%.
  • Change a negative geared investment into a positive geared investment, helping investors to  pay off their mortgage quicker and in turn able to purchase more properties.
  • Increase the re-sale value of their property, helping you maximize the capital gain from the property.
  • Additional tax depreciation benefits increase your ROI even further.
BENEFITS OF A Tailored Granny Flats (in most cases)

We have provided realistic financial examples on the Return on Investments (ROI) of Tailored Granny Flats.

The ROI shows the annual rent return as a percentage of the total investment. These examples don’t take into account individual circumstances, financial position, depreciation and other factors which may make the investment even more profitable.

An Investor’s Story

A recent Client of ours purchased an investment property in Plumpton in Western Sydney. The sole purpose of purchasing this property was to obtain a dual income from both the main house which was already tenanted and constructing a Tailored Granny Flats in the backyard. The Clients are already seasoned investors with several properties in their portfolio however this is the first Tailored Granny Flats they have built.

Initial Financial Outlay

The initial design and approval fees were $8,800 which included a contour survey of the property by a registered surveyor, meeting with the Design Team to formulate the concept, agreeing on the design and obtaining all necessary information that was needed to be provided to the Private Certifier: Structural engineering, stormwater and BASIX reports are all obtained.

As the property met the Complying Development Requirements under the State Environmental Planning Policy (Affordable Housing), the cost in both time and money to have the development approved was significantly less than the Development Application process through Council.

As a guide, the Complying Development process takes about 6 weeks from tender acceptance to when construction can begin (including notification to neighbours and Council). The Development Application process can take 2-6 months depending on the Council and cost $10,000 or more just to get the Development approved on top of the design fees.

Construction Begins

With purchasing an older house there is always going to be some “undocumented” features that need to be dealt with. In this case, an old underground pool was filled in with rubble including tree roots and rubbish that all needed to be removed before construction started. Depending on the type of pool and soil, there can be several options to drill the piers to stabilise the slab. One option is to use screw piers, however in this case the rubble was removed and the piers drilled successfully. Once this rubble was removed, construction proceeded smoothly.

Certification of Building Works

As with all new developments, a qualified person is required to inspect the works at milestones within the project. The Private Certifier views the property when the piers are drilled, the slab is poured, the frame is erected, the waterproofing is completed and finally at completion. The Tailored Granny Flats needs to be fit for occupation so items such as the shower screen, kitchen and bathroom all need to be completed for the Final Inspection to occur.

In conjunction with the Final Inspection occurring, documents from a number of trades including pest and window glazing are provided to the Certifier for their collation with the required standards. Once all documents and outstanding works have been completed, the Private Certifier will issue a Occupation Certificate so that the Tailored Granny Flats can be occupied.

The Finished Product

The Tailored Granny Flat was rented out before construction was finished allowing immediate returns on the issuance of the Occupation Certificate
(a) Cost to build a Standard Granny Flat (with Upgrades including carport)$115,000
(b) Average Rent Return per week$400
(c) Repayments at 5% interest (a x 5%)$5,750
(d) Repayments per week (c / 52 weeks)$111
(e) Additional Earnings per week (b – d)$289

Which is an additional $931 per month (e x 4.33 weeks) 

Other Examples of Tailored Granny Flats Returns and the extra income you can earn

Look at the different examples below to determine the ROI you can achieve for different types of Tailored Granny Flats – or visit our website & click on our on-line calculator to calculate the ROI of your Granny Flat.

Studio Granny Flat 1 bedroom Granny Flat 2 bedroom Granny Flat
Weekly RentROI%Extra earnings per weekWeekly RentROI%Extra earnings per weekWeekly RentROI%Extra earning per week
$18015.6%$93$23515.3%$120$30015.6%$156
$19016.5%$103$25016.3%$135$32016.6%$176
$20017.3%$113$26517.2%$150$34017.7%$196
$21018.2%$123$28018.2%$165$36018.7%$216
$22019.1%$133$29519.2%$180$38019.8%$236
$23019.9%$143$31020.2%$195$40020.8%$256

PLEASE NOTE:

Prices based on:

  • Studio Tailored Granny Flat:$68,000
  • 1 Bedroom Tailored Granny Flat: $88,000
  • 2 Bedroom Tailored Granny Flat: $108,000

The figures used in the examples above are based on average current rentals of Granny Flats in the Sydney area & with an interest only rate of 7.5%.

  Building prices may vary subject to your site condition & any council or BASIX requirements. The examples don’t take into account individual circumstances, financial position, depreciation and other factors which    may make the investment even more profitable.

Our Process

INITIAL ENQUIRY TO DETERMINE ELIGIBILITY

To help determine your site’s eligibility we will require you to:
  • Obtain a Section 10.7 Planning Certificate from your local council
  • Obtain a Sewer Diagram for the property
  • Obtain a Title Search for the property
  • Confirm that your property is at least 450m2 & 12m wide
Interested to see if your property qualifies to build a Tailored Granny Flats? – get in touch with us! Call 02 8104 2777 or live chat with our team on the tab below. You can also learn more about checking your eligibility for Complying Development here.

OUR OBLIGATION FREE SITE INSPECTION & PRELIMINARY TENDER

Once we have reviewed your documents, our Site Assessor will inspect & measure your property and discuss your ideas & features you would like included so that a detailed Preliminary Tender can be prepared for you.

CONTRACT SIGNING & DESIGN OF YOUR Tailored Granny Flats

If the Preliminary Tender is accepted, a fixed price NSW Fair Trading building contract is provided to you (with no hidden extras) for both parties to sign detailing exactly the full list of agreed inclusions in the proposal.

Our Design team will then draw up a full set of detailed Architectural Plans for your new Tailored Granny Flats including floor plans, elevations, bathroom & kitchen plans, electrical layout and specifications. These plans will then form part of the final contract.

APPROVAL OF YOUR Tailored TAILORED GRANNY FLATS

When the designs are accepted, the plans will be submitted to the Private Certifier (or Local Council) and necessary consultants for stamping and approval. These include:

  • Sydney Water (Sewer) Quick Check
  • Structural Engineer
  • Stormwater Certification
  • BASIX Report
  • Private Certifier (or Local Council)
  • Home Owners Warranty Insurance paid
  • Long Service Levies paid

MATERIAL SELECTIONS & CONTRACT RE-SIGNING (if required)

During the Approval process you will meet our Interior Designer to help guide you through the selection of materials, finishes and colour schemes for your new Tailored Granny Flats.

If the owner wishes to upgrade certain selections, the contract will be amended to reflect these changes.

THE CONSTRUCTION COMMENCES

You will be introduced to your Project Consultant at a Pre-Construction meeting, where a start date will be confirmed (which is usually within 10 days of receiving your final DA or CDC approval). Your Project Consultant will be responsible supervising and scheduling licenced tradesmen.

The Construction process is approximately 12 – 15 weeks, depending on the complexity of the site and weather conditions.

Need help with your enquiry or property eligibility?

Speak with the Tailored Granny Flats team today.

Call 0412 476 416 or Live chat with our Sydney team on the tab below.

Our Process

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INITIAL ENQUIRY TO DETERMINE ELIGIBILITY

To help determine your site's eligibility we will require you to:
  • Obtain a Section 10.7 Planning Certificate from your local council
  • Obtain a Sewer Diagram for the property
  • Obtain a Title Search for the property
  • Confirm that your property is at least 450m2 & 12m wide
Interested to see if your property qualifies to build a Granny Flat? - get in touch with us! Call 0412 476 416 or live chat with our team on the tab below.

OUR OBLIGATION FREE SITE INSPECTION & PRELIMINARY TENDER

Once we have reviewed your documents, our Site Assessor will inspect & measure your property and discuss your ideas & features you would like included so that a detailed Preliminary Tender can be prepared for you.

CONTRACT SIGNING & DESIGN OF YOUR Tailored Granny Flats

If the Preliminary Tender is accepted, a fixed price NSW Fair Trading building contract is provided to you (with no hidden extras) for both parties to sign detailing exactly the full list of agreed inclusions in the proposal.

Our Design team will then draw up a full set of detailed Architectural Plans for your new Tailored Granny Flats including floor plans, elevations, bathroom & kitchen plans, electrical layout and specifications. These plans will then form part of the final contract.

APPROVAL OF YOUR Tailored TAILORED GRANNY FLATS

When the designs are accepted, the plans will be submitted to the Private Certifier (or Local Council) and necessary consultants for stamping and approval. These include:

  • Sydney Water (Sewer) Quick Check
  • Structural Engineer
  • Stormwater Certification
  • BASIX Report
  • Private Certifier (or Local Council)
  • Home Owners Warranty Insurance paid
  • Long Service Levies paid

MATERIAL SELECTIONS & CONTRACT RE-SIGNING (if required)

During the Approval process you will meet our Interior Designer to help guide you through the selection of materials, finishes and colour schemes for your new Tailored Granny Flats.

If the owner wishes to upgrade certain selections, the contract will be amended to reflect these changes.

THE CONSTRUCTION COMMENCES

You will be introduced to your Project Consultant at a Pre-Construction meeting, where a start date will be confirmed (which is usually within 10 days of receiving your final DA or CDC approval). Your Project Consultant will be responsible supervising and scheduling licenced tradesmen.

The Construction process is approximately 12 – 15 weeks, depending on the complexity of the site and weather conditions.

Need help with your enquiry or property eligibility?

Speak with the Tailored Granny Flats team today.

Call 0412 476 416 or Live chat with our Sydney team on the tab below.

Request a Free Measure & Quote
Complete the form below and we’ll arrange a free quote with an expert.

Our Packages

Family Package

Family package

With spacious and open design, the family package includes an activity room that connects to a full kitchen with all the modern amenities.

Senior Package

Senior Package

The Senior Package at Grassy Flats features two bedrooms at opposite corners, each connecting to a wide kitchen and living area.

Investors Package

Investors Package

With a larger living area and kitchen, the Investors Package includes 1.5 baths and two corner bedrooms.

Family package
With spacious and open design, the family package includes an activity room that connects to a full kitchen with all the modern amenities.
GET A FREE QUOTE
Request a Free Measure & Quote
Complete the form below and we’ll arrange a free quote with an expert.
Senior package
The Senior Package at Grassy Flats features two bedrooms at opposite corners, each connecting to a wide kitchen and living area.
GET A FREE QUOTE
Request a Free Measure & Quote
Complete the form below and we’ll arrange a free quote with an expert.
Investors package
With a larger living area and kitchen, the Investors Package includes 1.5 baths and two corner bedrooms.
GET A FREE QUOTE
Request a Free Measure & Quote
Complete the form below and we’ll arrange a free quote with an expert.

Extend, Renovate or Rebuild?

Tailored Granny Flats provide a unique personalised total transformation service that other builders simply can not offer. Many of our team have worked here for over 20 years, they are some of the best in the business and would love to help you get the facts about extending, renovating and rebuilding.

  • How much will it cost
  • Should you extend up, out or down?
  • Does your new layout require structural changes?
  • Will your build be effected by conservation law or heritage overlay?
  • Do you know about building restrictions like floorspace ratios and property setback rules?
  • How will bushfire regulations effect your decision to renovate and extend vs knockdown and rebuild?
  • Can a renovation and extension achieve the result you want or is knockdown rebuild the best option for you?
Get advice and to discuss your ideas.
GET A FREE QUOTE

GET A FREE QUOTE

Request a Free Measure & Quote
Complete the form below and we’ll arrange a free quote with an expert.

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Testimonials

“My husband and I would like to thank you very much for the effort that you and your team put in to get our alfresco area coming off the  house completed.Considering the abstract nature of the plan and the  site itself, you and your tradesmen did the job with minimal...

“It was a pleasure working with Tony and his team. The attention to detail and hands on experience made the journey so easy, I would defiantly refer use Tony again in the near future ”...

“My husband and I would like to thank you very much for the effort that you and your team put in to get our alfresco area coming off the  house completed.Considering the abstract nature of the plan and the  site itself, you and your tradesmen did the job with minimal...

“It was a pleasure working with Tony and his team. The attention to detail and hands on experience made the journey so easy, I would defiantly refer use Tony again in the near future ”...

“My husband and I would like to thank you very much for the effort that you and your team put in to get our alfresco area coming off the  house completed.Considering the abstract nature of the plan and the  site itself, you and your tradesmen did the job with minimal...

“It was a pleasure working with Tony and his team. The attention to detail and hands on experience made the journey so easy, I would defiantly refer use Tony again in the near future ”...

Request a Free Consultation Now & Discover How Tailored Granny Flats Can Help you.

Your New Addition Awaits