Today I take you through a brand new 2 bedroom granny flat build which is getting the owner at 12%+ rental yield. This is a great opportunity to see what a modern granny flat looks like.
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0:00 – Overview of this 12%+ yield granny flat
1:17 – Walkable vs Driveable side access
1:40 – Granny flat walkthrough
2:29 – The details of the granny flat layout
4:03 – How this fits into the 2 properties to financial freedom strategy
6:00 – If you’re interested in learning more about this strategy
4 Incomes from 1 Property – https://www.youtube.com/watch?v=RQbn5M_v3to
Hey guys, Ryan here from on property joined with crystal buyer’s agent from pumped on property and we’re going to do a walkthrough of one of the properties that were purchased for a client. You want to tell us a bit about it?
Yeah, most definitely. So we recently bought this property for a client called Dave. I’m frightened. He asked cost $405,000. That was about eight months ago. He put about 30 grand into renovating the house and just upgrading it, as you can say is sprayed the. I’m just done a few minor tidy ups. And then inside just upgraded it a little bit. Front House is currently rented for $400 per week. And then as we head down the driveway, he’s built a granny flat in the backyard. So this granny flat cost about $135,000. So you’ve got the house for 4:35 with the renter. The granny flat complete for 1:35. He’s just secured attendant to move into the granny flat as it was either a complaint a couple of weeks ago at 3:15 per week. So we’ve got a total rental of seven slash 15 per week with a total outlay of about five slash 17. Awesome. Let’s go have a look. Have a look.
So this be a great opportunity for you guys to see what a finished granny flat looks like. A brand new granny flat. I think so many people have in their mind the old school granny flats.
Hey granny stays. Ones are a lot more modern and I look pretty good.
So with this one, is it just walkable access?
So yeah, he could have done driveway, side access, but rather than take up the entire side of the house with old driveway, he’s decided to finish the carport. Bear put the pathway and then use this space for a bit of grass. So the tenants of the back dwelling have a little bit of yard space tenants. Get to use the. Yeah. So the tenants of this back and get to use the Carpool and then you’ve got the pathway access.
That’s why leading into the granny flat as you can say, awesome deck, which we’ve talked about in a previous video. Really Nice space here. And then into the granny flat here. So as you guys can see in here, we’ve got beautiful kitchen, we’ve got the living space in here. And then we’ve got two bedrooms, the bedrooms, the same size,
um, no one bedrooms a little bit because. So the second bedroom is about three by three and the larger bedroom is about three point five by three point two, which is completely big enough for a granny flat tenants living here and going to be a single elderly people, maybe one child potentially fly in, fly out. So
as you guys can say, it’s quite a small space. What are we looking at? Fifty five square
meters. Um, this, we usually build two different designs for granny flats. This one has a slightly bigger kitchen. They’re being. And then you’ve got your two bedrooms, which as I was just saying, are kind of about three by three and three point five by three point two with the larger deck. Um, in this particular council area, north of Brisbane, 55 meters squared is the maximum for a two bedroom granny flat. Um, but again, getting three, 15 per week, it’s comfortable enough the types of people that are living here, which are going to be your singles, a fly in, fly out workers, maybe a single mom or that elderly person who just needs a bit of space.
It’s a great use of space. It is small. It does go compact as you’re in here, but it is very usable space and it is very well designed. Often we’ll go through some of those older Queensland and houses that are three bedroom and the space is not as well designed as this having the bedrooms and the bathroom all leading onto this open living kitchen, dining space and then you’ve got the deck out there as well. It does feel like a little two bedroom unit, but it’s slightly better than a unit because they have that logic outside space. Often they have a bit of a yard as well and so that’s why you can get the rents were because it is such in such nice condition.
Exactly right. And it’s quite a unique option in this market where there aren’t too many units to many townhouses or anything available. So it’s that sweet spot for affordable housing that still doesn’t feel like it’s a unit or a townhouse and it gives people an option that can’t afford to go into that three bedroom next level and afford that higher rent.
So as you can see, you guys a really cool opportunity with this granny flat. We talk a lot about the two properties to financial freedom strategy where you purchase two properties, built granny flats and this is a perfect example of that. Yeah, exactly. And the guy that did this one, I think this is the fourth or fifth granny flat that he’s done. He’s got a few of them in Sydney and he decided to spend a little bit more coin on it. You could probably get one down for 100 and 1500 and $20,000, but he decided to put an extra 15 to $20,000 into this, get a bit of a bigger deck upgrade. Some of the things inside, like the oven, like the dishwasher, like the gas cooktop is also put in a shed and he’s also put in a nice high fence for the next door neighbors to separate them a little bit more so you can see the privacy aspect there, which is something that we always talk about as well.
So all of those little upgrades is probably going to get him an extra 15 to $20 a week in rent today, which is going to compound over time as well. And that’s the thing. Looking at the price of this verse, the rent that you’re getting when you’re purchasing a house, often even in these areas, you kind of looking at that sort of five percent rental yield. If you look at the granny flat just by itself costing, I think crystal said 135. Renting for about three slash 15 per week. I can’t do the math off the top of my head, but I do know that that’s over a 10 percent rental yield. Probably over 11, maybe even 12 percent rental udb just looking at the granny flat alone. So we’ve got the property at the front that’s obviously being rented, but you can see why granny flats can be such a great opportunity for cashflow when it’s costing you so little for the rent that you’re getting.
It can really make the entire property positive cashflow. Whereas if you just looked at the property at the front, it probably wouldn’t have been on this one. He should be getting close to that seven percent yield on the whole block. Yeah, you know, that’s, that’s pretty positive cashflow there. So we’re going to hit it out of here and head off to the next property. If you guys are interested in learning more about investing in these types of properties than Simon and the team over a punt on property are offering free strategy sessions to you guys, so head over to on property.com dot EU, and you can book in a free strategy session over there, a time that suits you. You can look at your situation where you’re at, where you want to be, and whether a property like this is going to fit into your portfolio and work really wealthy. Yeah. Looking forward to hearing from some of you, so yeah, however it on property.com dot EU. While you’re here, go ahead and check out another video. Me and Simon did on a very unique opportunity that was across two blocks of land. That would be cool. Yeah, that was amazing. So that client’s going to get for incomes from the one property. So I’ll link that up over there or in the description down below. And until next time, stay positive.