How much value do granny flats actually add
I've seen a few threads pop up lately asking about this so i thought i would share some real data and let everyone draw their own conclusions.
An IP with a granny flat in Sydney had a bank valuation done for equity release purposes:
Granny flat cost me $130k all up, landscaping, fencing, blinds, etc in 2009
Now assuming the valuation in Dec 2013 did take the Granny Flat into account (even though they didn't walk into it), it would appear the Granny flat has added value of approximately $130k, so several years after the build, i got a 1 for 1 capital return.
Valuation in Nov 2014 came in $1,050,000 (both properties were inspected).
It would appear the granny flat has added $90-$120k... but it cost me $130k several years ago
All that said, would i sell it? Nope. Its a great cash cow.
I've seen a few threads pop up lately asking about this so i thought i would share some real data and let everyone draw their own conclusions.
An IP with a granny flat in Sydney had a bank valuation done for equity release purposes:
- Dec 2013: 900k <-- I question this valuation as the valuer never walked into the granny flat for the full valuation, but they did for the main property. Who knows how they valued this one... maybe they took the granny flat into account, maybe they didn't.
- Nov 2014: 1,050k <-- Valuer walked into both properties.
Granny flat cost me $130k all up, landscaping, fencing, blinds, etc in 2009
Now assuming the valuation in Dec 2013 did take the Granny Flat into account (even though they didn't walk into it), it would appear the Granny flat has added value of approximately $130k, so several years after the build, i got a 1 for 1 capital return.
- $744k, Dec 2013 - 787sqm, Cladded home, larger, inferior condition. Terrible layout, 16m frontage
- $830k, Oct 2013 - 700sqm, Cladded home, similar size, inferior interior condition.
- $770k, Nov 2013 - 626sqm, brick veneer, similar size, inferior interior condition.
- $990k, Dec 2013 - 650sqm, Cladded home, larger home, better interior condition
Valuation in Nov 2014 came in $1,050,000 (both properties were inspected).
It would appear the granny flat has added $90-$120k... but it cost me $130k several years ago
- $980k, Jan 2014 - 765sqm, rendered home, similar size, slightly better interior condition, 15.24 frontage, backs parklands reserve
- $840k, Mar 2014 - 650sqm, brick veneer, similar size, similar interior condition
- $850k, Mar 2014 - 746sqm, cladded home, similar size, no pics of interior (assumed to be terrible).
- $930k, Apr 2014 - 650sqm, Brick Veneer, larger home, better interior condition
- $985k, Jun 2014 - 715sqm, cladded home, similar size, better interior condition.
- $960k, Jul 2014 - 740sqm, Fibro house, similar size, better interior condition, 19.2m frontage
- $930k, Oct 2014 - 637sqm, fibro house, similar size, no pics of interior (assumed to be terrible).
All that said, would i sell it? Nope. Its a great cash cow.
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