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Granny Flats are the Hottest Property in Sydney posted on the 24th July 2015

Ipswich Granny Flats, the largest provider of granny flats in SE Qld bring this article as it happens, about just how hot granny flats are in some areas. Any properties that have a granny flat or even just a granny flat potential will become premium properties in the future. Read on…
Domain News
Stephen Nicholls
11 July 2015

Granny Flats are the Hottest Property in Sydney

 

Article Lead - wide997976919gi8a1qimage.related.articleLeadwide.729x410.gi63x3.png1436563156729.jpg-620x349Arturo Norbury and Jessica Lim with their children, Zoe and Mitchell at the entrance to their Randwick granny flat at the back of their home. Photo: Peter Rae

It was the standout auction result from last weekend: a simple three-bedroom home at Asquith near Hornsby sold for $1.48 million, a massive $480,000 over reserve.

“I knew it was going to be a bomb because we had 70 contracts out and 42 registered on the day,” said Ray White Hornsby agent Jaime Garrick.

What was the appeal? The mere potential for a granny flat out the back because it was a 1033-square-metre block.

Article Lead - wide997976919gi9jrwimage.related.articleLeadwide.729x410.gi63x3.png1436563156729.jpg-620x349Potential: This house at 7 Baldwin Avenue, Asquith sold for a suburb record of $1.48 million on Saturday because the buyer wanted a home where he could build granny flat. Photo: Grahame Horne

Granny flats – or properties that could have one – are among the hottest in Sydney, for both investors keen to double their rental yields and homeowners wanting to have family within reach.

The state government revealed to Domain this week that over a four-year period more than 7500 secondary dwellings – most of them granny flats – had been been approved. That followed the introduction of laws in 2009 that allowed a granny flat to be approved in just 10 days.

Mr Garrick said more than a quarter of the buyers interested in the Asquith property had a granny flat in mind. “They can get an extra $450 or $500 week in rent if they build it right,” he said. “And they’d spend between $120,000 and $150,000 building it.”

The successful bidder last Saturday, 70-year-old Raymond Leung, who admitted to paying “a little bit more” than he hoped, is going to live in the granny flat with his wife, Eva, with his 34-year-old son and grandson in the main house.

“It’s good that three generations can live together, but it’s better to have a little distance between us all,” Mr Leung said, laughing. “There is a bit of a generation gap.”

Granny-flat builders have sprung up across the city to cope with the demand. “We’re doing about four or five jobs per week,” says Wally Gebrael of Granny Flat Solutions.

Robert Daoud of Master Granny Flats says business is booming. “There’s just huge demand at the moment.”

Although most are being built in larger backyards from in the west, north and south of the city, some are appearing in the east.

Qantas HR manager Atura Norbury, 40, and web designer Jessica Lim, 37, finished their granny flat above a garage in Randwick in February for $250,000. They’re already collecting a cool $500 a week in rent.

And there’s still enough room for Mitchell, six, and Zoe, three, to play in the courtyard.

“It’s compact, but it’s working really well,” Mr Norbury said.

“And there’s potential for parents to move in at some stage.”

 

Written by Sonia Woolley

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