Positive granny flat-brochure-11/2011


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Positive granny flat-brochure-11/2011

  1. 1. 20% + Returns Granny FlatsStarting at $68,000 fully installed
  2. 2. Who We Are & What We DoPositive Renovations is a property renovation company specialising in the As project manager Positive Renovations does the following:renovation of units and houses and the construction of granny flats. Positiveutilises experienced licensed builders with local council knowledge to 1. Provide a free initial assessment of your property.ensure projects are delivered on time and budget. 2. Co-ordinate a comprehensive on-site inspection of your property to Rick Stapleton – Project Manager provide you with a build zone map and a guaranteed fixed price. Rick has extensive experience in project managing small to medium development 3. Co-ordinate the approval of your granny flat. projects in Queensland and New South Wales. Rick has previously worked at 4. Co-ordinate preparation of the building contract between the UBS Warburg as an Associate Director builder and the client. in corporate finance and at Shakespeare Haney Securities Limited as Finance 5. Co-ordinate finance approval (if required). Director. 6. Notify the builder to commence works once approval has been received. James Elliott – Project Manager James is a licensed builder and has 7. Appoint the private certifier to inspect stages and provide an over 12 years experience in the building occupation certificate on completion. and construction industry. He works in project management for granny flats 8. Provide a weekly update with photos to ensure the builder is and his role includes providing project progressing with the timetable. advice, engaging builders and tradesmen and working throughout the approval 9. Answer any certification or construction queries for the client and construction process. James is also throughout the project. available to provide quotes for renovations should the purchaser require them. 10. Provision of final tax invoices to client. Phone: (02) 9037 4668 - Email: grannyflats@positiverealestate.com.au
  3. 3. Introduction• Positive Renovations (Positive) is an experienced team of property professionals who have developed a Granny Flat investment What is a Granny Flat? package with a massive 20%+ return on investment. • A Granny Flat is a self contained unit which is constructed in the• We use the best most experienced approvals team in NSW to backyard of your existing home. obtain fast and efficient approvals for construction (3-4 weeks). • Our Granny Flats have a bathroom, laundry, kitchen and 1-2 bedrooms.• We only work with licensed builders who have many years experience in building small homes and are proven reliable. • The Granny Flat and the existing home can be rented to separate tenants.• We have worked together with our builders to lower the price • The Granny Flat tenant access their unit down one side of the home and of construction to make Granny Flats more affordable for you. the rear yard is divided using fencing to keep the tenants separate.• Our designs come in a one and two bed configurations to fit comfortably in your backyard. Benefits of a Granny Flat • NSW Affordable Housing legislation allows the Granny Flat can be rented robe out to a third party tenant. It also provides for quick approval time of 10 space Bath/Ldry wm 720 720 4204 20 robe days if they qualify as complying development. 510 1400 Bed 2 Bed 1 • The Granny Flat provides surplus income to the property owner through 770 770 a duel income. ref 600 space • Your property will increase in value and be more saleable. 600 Kitchen/Dining Living 1368 • You will receive additional depreciation benefits. Phone: (02) 9037 4668 - Email: grannyflats@positiverealestate.com.au
  4. 4. Granny Flat Returns• Based on rent of $300 per week the two bed Granny Flat shows a gross annual return of 21.4% on the outlay cost of $73,000 returning surplus cash of $172 per week in additional income. One Bed Garden Flat - $68,000 Two Bed Garden Flat - $73,000 % gross Surplus cash % gross Surplus cash Weekly rent Weekly rent return pa per week* return pa per week* $210 16.1% $96 $270 19.2% $144 $220 16.8% $105 $280 19.9% $154 $230 17.6% $115 $290 20.7% $163 $240 18.4% $124 $300 21.4% $172• This is based on a rental management fee of 7.5%, and and a 100% interest only loan at 7.5% per annum. Phone: (02) 9037 4668 - Email: grannyflats@positiverealestate.com.au
  5. 5. Minimum Lot RequirementsPositive does a free initial assessment Positive will check the following:of your property to determine thatit meets the minimum requirementsunder the State legislation (AHSEPP) • Minimum lot size 450m2and whether it can be approved as a • Minimum frontage of 12mcomplying development therefore not • Minimum rear setback of 3.0m and side setback of 0.9mrequiring council development approval. • Main sewer does not pass through the proposed build zone (sewerage diagram required) • There are no restrictions on your property for a complying development (s149 required) • Minimum setback from main dwelling of 1.8m • Available side access for granny flat tenant • No major trees within 3.0m of proposed granny flat position Assuming your lot meets the minimum requirements above a detailed on site assessment can then be done by our approval team for $990 which provides a build zone map and a guaranteed granny flat price. Phone: (02) 9037 4668 - Email: grannyflats@positiverealestate.com.au
  6. 6. Financing OptionsObtaining finance for two dwellings on one property is b) Most lenders will also provide a construction loan. Your lenderviewed by lenders in the same light as a typical home loan will usually provide the lessor of i) the ‘on completion’ value ofhowever with the advantage of increased serviceability. the existing house and proposed granny flat or ii) the current value of the existing property and the cost of the granny flat.There are two common methods for funding the This method can result in 80% finance for the construction ofconstruction of your granny flat: your granny flat, however, this needs to be arranged through a a) Loan increase or equity loan local banker, not your broker. Typical broker loan products do b) Construction loan not offer 80% loans, and it is likely that you will be required to contribute more equity. We can obtain 80% loans for you and will arrange this on your behalf.a) The easiest and quickest way to obtain funding is touse the existing equity in the your property (or properties) • Positive Renovations will provide you with a building contract,to increase your existing loan. The lender may require you a full set of plans and rental appraisal from a local agent toto obtain a new valuation on your property (or properties) facilitate you obtaining financeto verify the current valuation/s. This provides you with anopportunity to review your current loan and to refinance at • Positive Renovations can also organise a loan for your newa lower interest rate while obtaining a loan increase. 100% granny flat through our experienced team of brokers and financialfinance is usually available using this option and is therefore expertsthe preferred method. Phone: (02) 9037 4668 - Email: grannyflats@positiverealestate.com.au
  7. 7. The Complete Package 1 We undertake a free initial assessment of your property to see if it meets the minimum requirements. 2 We co-ordinate the approval of your granny flat. 3 We arrange the finance for your granny flat. 4 Our licensed builder will construct your granny flat. 5 We provide you with a final occupation certificate and tax invoice on completion. Phone: (02) 9037 4668 - Email: grannyflats@positiverealestate.com.au
  8. 8. One Bed Design $68,000 28m2 Phone: (02) 9037 4668 - Email: grannyflats@positiverealestate.com.au
  9. 9. Two Bed Design $73,000 37m2 We can also construct larger designs up to 60m2 on request, however, we often find the returns diminish over 40m2. Phone: (02) 9037 4668 - Email: grannyflats@positiverealestate.com.au
  10. 10. Standard InclusionsExTERnAl • Elevated design with bearers and joists. • Up to 11.0m of electrical connection and separate electrical meter. • Up to 25.0m of external water/stormwater connection. • Up to 11.0m of external sewer connection. • External clothesline. • Hardiplank external cladding and colorbond roof and guttering. • Up to 10m of fencing.InTERnAl • Timber laminate to living/kitchen areas, carpet to bedrooms and tiling to bathroom/laundry. • Under bench electric oven, gas cook top and electric rangehood. • Gas hotwater system. • 1Hp split air conditioner. • Built in robes with shelving and hanging rails. • 600mm vanity with 2 glass doors, 2 lamp heat fan, 45l laundry tub, laminated sliding glass shower screen. • 7 double and 2 single power points, tv aerial, phone line, 6 lights with oyster fitting, smoke detector. Phone: (02) 9037 4668 - Email: grannyflats@positiverealestate.com.au
  11. 11. Optional Extras & ExclusionsOPTIOnAl ExTRAS • Timber decking. • Landscaping / paving.ExcluSIOnS • Council s94 contributions (if applicable). • Demolition. • Removal of garage / shed / existing concrete slab. • Tree removal. Phone: (02) 9037 4668 - Email: grannyflats@positiverealestate.com.au
  12. 12. Buying Process Step 1 Positive Renovations will do an obligation free initial assessment of your property to check if it meets the minimum requirements under NSW State legislation. If it does then Positive will arrange a detailed on site inspection of your Check if your block property for $990. This will provide you with a build zone map and a guaranteed fixed price for your chosen granny is suitable. flat. The $990 is included in the purchase price if you proceed with the purchase of one of our granny flat packages. Step 2 You will be required to pay the balance of the approval fee of $6,500 (total $7,490). Our approvals team will then prepare your approval for lodgement in 2 weeks. If it meets certain requirements it can then be lodged with our Approval Process. private certifier for approval in 10 days. Otherwise it will need to be lodged with the relevant council and may take 4 weeks. During the approval process we will provide you with a building contract so that you can obtain finance. Once the approval is confirmed you will need to sign the building contract and construction management agreement. Step 3 7-10 days prior to construction commencing you will need to deposit the building contract amount into our account (unless you have a construction loan). During construction we will make various payments to the builder at foundation Construction stage, framing stage, lockup stage, fix-out stage and at completion. You are welcome to make a final inspection and completion. before we make the final payment to ensure you are completely satisfied with the finished installation. All Positive Granny Flats come with a 7 year builders warranty for your peace of mind. Once the final payment is made you will be provided with a tax invoice and a final occupation certificate and your tenants are ready to move in. Phone: (02) 9037 4668 - Email: grannyflats@positiverealestate.com.au
  13. 13. Granny Flat Buyers Guide1. comparing various granny flat quotes • You will still need to get licensed trades to complete 8. The bigger the granny flat the better • you need to compare apples with apples wet areas, electrical and plumbing work • Under NSW State legislation you can build up to • does the price include approvals? • Keep in mind that you will need to do an owner builder 60m2 so why not build the maximum size? • does the price include project management? course and still obtain HOW insurance • The additional rental gain from building a 60m2 granny • does the price include airconditioning, fencing, • You are liable for HOW insurance for 7 years even if flat as opposed to a 40m2 granny flat is minimal tv antenna, built-in wardrobes, fencing? you sell your property • You will generally not receive more rent for the granny • does the price include a laundry? flat than the house • does the price include a separate electrical meter in 5. Buying a completed granny flat from • The bigger the granny flat the smaller the backyard for the house power box? This is required under NSW law ebay or the trading post the house if an agent is managing your rental • Does it come with all engineering certificates and meet • A lot of backyards are not big enough for a 60m2 • Positive granny flat packages include everything Australian standards? granny flat • It is likely you are buying an expensive shed • All these options need to be considered before2. Purchasing a granny flat as a kit only • granny flats need to be built on site to be approved as automatically assuming 60m2 is the optimal size • Sounds like a great way to save money HOWEVER a granny flat under NSW State legislation • Does it comply with Australian standards? May kits are imported from China and have not been manufactured to • prefabricated granny flats will not comply with BASIX 9. Brick and tile granny flats are better requirements unless it is specifically built for your property • They certainly cost more and will NOT get you any Australian standards and you will not get an occupation • Real estate estate agents will not rent out a granny flat more rental income for your granny flat certificate. for you that is not approved • Does the kit include all fixout items such as toilet, vanity, laundry tub, tapware, kitchen, air conditioner, oven etc? 10. Three bedroom granny flats • If it does then you still need to double this price (as 6. Buying a house with an existing granny • As a general rule you will not receive any more rent for rule of thumb) to get a builder to put it together on site flat the granny flat than the house including foundation and services connected! • Beware the granny flat is unlikely to be approved • A 2 bedroom granny flat in Western Sydney rents • Approved granny flat properties are rarely sold due to for $250-280 per week and houses for approximately3. converting an existing garage into a high cashflow $300 per week granny flat • Real estate agents will not rent out the granny flat for • The additional cost of a 3 bedroom 60m2 granny flat • This will need to be done through a development you would only result in an extra $20-30 per week of rental application to council • You are liable to the tenant if the granny flat burns down income • Can be very expensive due to non complying setbacks, ceiling height, unknown slab strength etc and may not 7. Obtaining approval for your granny flat 11. Section 94 council contributions be approved by yourself • These are expensive and need to be paid before you • If you convert it without approval then real estate • This is not as easy as you think receive an approval for your granny flat agents will not rent it out for you • When I first tried this for one of my first clients it took • They vary from $2,500 to over $10,000 and can • You will lose valuable storage or parking space for the 3-4 months! I have heard it taking a lot longer than this depend on the number of bedrooms and build price house tenant if council gets involved. • Most councils provide exemptions to these • There are lot of consultants which need to be instructed contributions however they are not openly4. Building your own granny flat kit as an in the correct order depending on your property communicated owner builder • Positive uses a specialist approval team that completes • Positive’s approval team understands these council • Great way to save money especially if you have the this process in 4-5 weeks at the same cost if you did regulations and will prepare your application to avoid skills it yourself these if possible Phone: (02) 9037 4668 - Email: grannyflats@positiverealestate.com.au
  14. 14. Contact Us Phone: (02) 9037 4668 Email: grannyflats@positiverealestate.com.auLevel 2, Suite 3, 11 Albany Street, St Leonards, NSW, 2065