Huge 13%+ Rental Yield From This Brand New Granny Flat

Today we are doing a key handover of a brand new granny flat that is finished and ready to be rented out.

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0:24 – The details of this property
3:23 – Walking down to the granny flat
4:18 – The front house is separated from the back house
4:48 – The living area and kitchen of the granny flat
5:39 – The main bedroom
6:50 – The bathroom
7:11 – Second bedroom
8:37 – This property is ready to be rented

Granny Flat Details:

Approximate build cost: $120,000
Estimated Rental Income: $300/week

Previous granny flat walkthrough with Ben Everingham

Transcription:

Ryan 0:00
here we are at another completed granny flat where we’re actually doing the key handover today and collecting the keys on the granny flat on behalf of a client so this is a property that a client has purchased here around 14 kilometers from the brisbane cbd we also have granny flat in the back which we’re going to do a walkthrough of jesus want to talk through a bit about this property and the details about it

Simon 0:23
yeah so this is one of our clients second properties that he’s purchased with us he plans to do the two properties to financial freedom strategy so he actually picked up the couple of properties first and then came back to this original one and decided to add the granny flat in the backyard so he picked this one out quite a while ago for $490,000 well within the last 24 months for $490,000 as you said were about 14 kilometers from the brisbane save a day here in a really nice area the number one primary school in the area is just a short for 500 meter walk down the road and you’ve also got a train station with cb d access and the about a kilometer away as well so it’s in a really nice area very high owner occupiers here we’ve got the granny flat that’s just been completed it’s actually got during the last few touches now on the car accommodation and everything else is completed though so it looks really good at the back i’m super happy with how it worked out throughout construction we still had this main house he rented out the whole entire time we did offer him a little bit of a reduction for their rental amount though so now that the granny flats completed the rental amount will probably go back up to somewhere between 404 20 but for the last few months while the granny flats been going in it’s been rented out for 390 so he’s still getting a little bit of money while that granny flats being constructed but it’s good to make sure that you still got some sort of income rather than just having to fund the whole project on your own

Ryan 1:56
yeah and then the granny flat build costs around about $125,000 and the rental appraisal on that is somewhere in the 280 yet

Simon 2:06
280 to 300 i’d say with this one and probably get the higher end because you’ve got under cover pretty secure parking it’s really separate it’s a really well done granny granny flat so we can check it out and have a look at you know the type of finished product that it is i think you’ve been through a few of them that we have

Ryan 2:25
and this is actually interior is actually a mirror of the one that one of the ones that may have been walkthrough so i’ll link up to that one down below but same internal floorplan but just flipped basically so slightly different but something when you’re looking for granny flats something like this as you can see car accommodation for the front property they’ve got those two garages there as well as the off street parking in front of the garages and you can see they’re doing the final work on the carport for the granny flat as well so the granny flat is actually going to drive in and then off to the side under their own carport which they can shut the gate on if they want to as well and so they’ve got that really secure parking and undercover parking as well which is obviously going to be really desirable so both properties have that parking so let’s have a walk through and let’s see what this granny flat looks like but as we walk here through the carport you can see that this is you know more than enough space to park your car completely under cover and then which is great especially when you get the heavy rains like recently and then you just come down this little path that you can see simon going down we’ve got a storage shed here which would be for the granny flat tenants as well and then we come up here on to this lovely deck into the granny flat here so something that i love about the granny flats is these really nice decks that they put on

Simon 3:58
yes you get a little bit of outdoor entertaining area here like you would easily fit a nice little coffee table or something like that to just have some outdoor entertaining space i love that fact that it’s got the shed and they’ve been able to maintain that one there as well because gives you that extra little bit of storage space as well

Ryan 4:17
yeah so as we come in through the granny flat you can also see that they have erected a fence for the front house so it’s important when you’re looking at granny flats there are two separate rentals here so we got separate meters separate water etc they put a fence in so it is completely separate you can see the yard there still for the front house here the granny flat obviously has a deck and has like a bit of wraparound outside space as well so as we come into the granny flat you can start to see the space here with the kitchen directly behind me we’ve got some some drill batteries on charge over there but really decent living area and really nice size Kitchen as well that you see in these granny flats with built in fans.

Simon 5:04
Yeah, so the finished product is is really, really nice. Once again comes back, it’s, it’s just a mini house in the backyard of a bigger house. So great opportunity here. We’re actually in a suburb that’s got ridiculously low vacancy rates at the moment, I think they’re below 2% right now. So there’s quite an under supply of rental properties on the market in this area. So properties like this, with the dual income opportunity still rent really well.

Ryan 5:30
Yeah. And so granny flat, you’re looking at 55 square meters. And as you can see, you’ve got the kitchen, we come over here into the main bedroom, which is quite a good size. So enough room, definitely for queen bed. And then you’ve also got a little nook kind of here where the built in wardrobes are where you could fit. Range chair, I guess for me, I would put like a little office table or something like that. But it gives some flexibility in the main bedroom, that you’re not just fitting a bed, you can put some extra space in there for whatever room for activities. It depends. depends who lives here. I mean, Ben, were joking that I would put an office space in there, and Ben would put a yoga mat. What about you, Simon, what would you put in that space, I’ll

Simon 6:15
just leave our bed in there and not just have this set up as a module area at the front here. I like having a nice big

Ryan 6:21
bed. So you just leave that space empty.

Simon 6:23
Yeah, just vacant space, get some like nice pictures on the wall and more about that.

Ryan 6:28
So I don’t like he doesn’t want to clutter, he wants to be very minimalistic. If we have a look over here, the space here is for the fridge, you’ve got air conditioning as well, which is important in the Brisbane market where it can get very hot. In the summer. It’s very hot. Even today, we’re nearly in winter. And you can see I’m in a T shirt right now. Yeah. And then we come into the bathroom, which again is a really good size, you really would say a bath in a granny flat. So we’ve got a shower. With the toilet, we’ve got a vanity. And then here you have room for washing machine and dryer if you want to stack them on top of each other. So room for all of that sort of stuff, everything that you need. And then we’ve got the second bedroom in through here, which is smaller than the first bedroom but still a really good size and also has built in cupboards as well. So that’s enough storage space. You got pantry in the kitchen, you know, everything you could really need for a little to better.

Simon 7:29
Yeah, I love it. I love the fact it’s got secure undercover parking, you’ve got that shed there for some extra storage space, a nice deck to set up a bit of outdoor entertainment area, massive main bedroom, and then plenty of room in here for a couch and a TV and still plenty of room in the kitchen for those delicious meals.

Ryan 7:48
So you said for the client, they purchased two properties. So did similar to like what you’re talking about purchase your properties first, and then come back and build a granny flat. So is this their first granny flat? or second?

Simon 7:58
This is their first granny flat? Yeah, so I’m not 100% sure exactly when they plan to do the next one, they’ve just done a major renovation on their other property that they purchased up here in Queensland. So they’re actually Melbourne based investors. And, you know, really resonated with that two properties to financial freedom strategy. And they’re probably, I think, the third or fourth clients that are really, really close to successfully executing the two properties and also the two granny flats. So that’s really exciting. It’d be nice to have a few people that have fully executed it like Yeah,

Ryan 8:33
and I bet they’re going to be so excited as well to have you know people through this property. So keys handover is today, we’ve done that we’ve had handovers.com looked through for any defects in the building, and the builders have come back and fixed all of that sort of stuff. So now it’s handover, then we’re going to obviously listed online or have the property manager will list it online, get some people through, get this rented and then they’ll be getting two incomes from this one property they’re going to be pretty excited about it’s going to be nice to have that extra income coming in. And obviously that security that if the front house does end up vacant, they’ve still got the income from the granny flat. It’s just you know diversifying their income that little bit more

Simon 9:18
Yeah, so once they get the increase income from the main dwelling, it should be up around that 420 mark. Plus let’s say you get the 300 mark for this one seller at $720 a week in Brent and he will his into this for about $615,000 including the granny flat so the amazing positive cash flow from this just one here. And then once he has his other one you’ll be well and truly positive cash flow and just reaping the benefits and enjoying that lifestyle.

Ryan 9:47
Yeah, so we hope you enjoyed this walkthrough of a Finnish granny flat and really exciting to say and exciting to see people implement this strategy and get the cash flow that they desire. So really hope that you’ve enjoyed watching this. If this something that’s interesting to you maybe a strategy that you want to implement yourself then simon is by the band and the team over pumped on property are offering free strategy sessions so you can get on the phone to them talk about what you want to achieve in your property investment journey and they can help design a strategy with you that you can go and then implement yourself or even make sense and it’s a good fit then you can’t have the opportunity to work with them so head over to onproperty com au forward slash session to check that out otherwise until next time stay positive

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