Looking at the potential value add of granny flats does anyone have some experience on valuation issues for granny flats.
Eg lets say you buy a house for $400k that normally rents for $400 a week, you spend $100k to add a granny flat that rents for $200 a week. Your spend is $500k and your rent is $600 a week. But will a bank give you a $500k valuation for the property, some people have told me banks are very consertative and may only give you say a $60k val for the granny flat being a $460k val for the whole place?
The valuation issues obviously makes it more difficult to access further capital as needed to grow a portfolio, any thoughts?
Eg lets say you buy a house for $400k that normally rents for $400 a week, you spend $100k to add a granny flat that rents for $200 a week. Your spend is $500k and your rent is $600 a week. But will a bank give you a $500k valuation for the property, some people have told me banks are very consertative and may only give you say a $60k val for the granny flat being a $460k val for the whole place?
The valuation issues obviously makes it more difficult to access further capital as needed to grow a portfolio, any thoughts?