Turn Your Backyard Into An Investment
Want to know how you can turn your property into a profit?
One of our partner businesses within the Summit Homes Group, Summit Granny Flats, turned the backyard of a Waikiki property into an investment strategy that now creates a passive, dual income for the client.
The overall objective was to find a property with an existing dwelling which could be rented out, as well as finding a property where a granny flat could be constructed, with the purpose of also renting it out as a long-term rental. Therefore, creating two investments on the one title of land.
The process began with the viewing of the 712m2 property on behalf of the client, to see if it would meet the requirements to allow a granny flat to be constructed behind the house.
This particular property ticked all the boxes. With the Summit Granny Flats experienced team of supervisors, contractors and trades, the property was able to be set up similar to a strata development with a separate driveway and fencing – but without the additional costs that come with a subdivision.
OUTCOME
The main dwelling is currently rented out for $580 per week and the granny flat is rented for $430 per week – bringing in a total income of $1,010 per week. *
The granny flat cost the client $220,000 inclusive of site works, driveway and fencing.
RESULTS
The client now enjoys the benefits of:
- A rental investment, generating a net return of $52,520 a year
- A brand new granny flat from which they can claim tax depreciation deductions
- Expenses including any interest on their loan is now a tax offset
- A property that increased in re-sale value due to the granny flat being an additional ancillary
GRANNY FLATS ARE HOT PROPERTY
Rental appraisals for a granny flat in the Rockingham area currently sit between high $300 to mid $400 per week.
THE ADVANTAGE OF TECHNOLOGY
A new mapping system enables the team to instantly check the suitability for an address to accommodate a granny flat and then provide the client a construction price guide within just a couple of days. If you have found a potential new investment, this helps the opportunity to be assessed quickly in this fast-moving market.
NEXT STEPS
The outlook for the Perth property market is still strong, with interstate and international positive migration pushing into the 40 year record low rental property vacancies, resulting in increasing rental values. Perth experienced 13.2% growth in rental rates in the 12 months to May 2023, tying with Sydney for the highest nationally. **
Speak with our Business Development Manager, Amanda Leipold on 9592 8188 or AmandaL@summitrealty.com.au to discuss the suitability of a property for the addition of a granny flat.
Working hand in hand with the Summit Granny Flats’ team, Amanda can help with the assessment of the technical aspects plus the potential rental income, ensuring a seamless approach all under the one Summit Homes Group roof.
The Summit Granny Flats team were very accommodating and helpful. Our Design Consultant was very courteous and helpful, nothing we requested was deemed to be unreasonable and he went out of his way to deliver us a brand new home which was on time, on budget and altogether, a very pleasant experience.
ERIC & LINDA
We were quite particular about the look we wanted to achieve and the Granny Flat Design Consultant had clever suggestions to get the effect we wanted. We were kept informed at all stages of the build and everyone who worked on the building was considerate and kept the disruption to a minimum.
JANET & DAVID
* Rental data was current as at July 2023
** Corelogic.com.au Monthly Chart Pack June 2023
