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News.com.au
an hour ago
- News.com.au
What to consider when you are planning to build a granny flat
Whether you're looking to house elderly parents, earn income from your own backyard or increase the yield on an existing investment property, building a granny flat is an attractive option. But there are several things to consider before you start contacting builders and comparing quotes. WHAT ARE YOU TRYING TO ACHIEVE? PIPA board director and managing director of the ASPIRE Property Advisor Network Richard Crabb says when it comes to planning granny flats 'the devil is in the detail.' While it can be a great way of earning rental income, from an investment perspective, it might not be the best choice depending on the person's strategy and where they sit on their financial journey, he says. He suggests people consider their strategy first before assessing the planning considerations and site feasibility. 'Every council has its own rules.' he says. 'Some allow granny flats as a right on R2 zoned blocks but others also require a DA approval. It's very important to get the right advice.' INVESTMENT CONSIDERATIONS Build quality and design is another thing to consider, especially if you are planning on renting out the property, he says. 'The next bit is really delving into the financial and investment perspective,' he says. 'Granny flats can significantly boost rental yield, especially in the metro fringe, in those growth corridors where there's that rental shortage and housing demand. 'But it might not necessarily increase the capital value of the property proportional to the costs. The capital value isn't going to increase in line with what they spend, necessarily.' This is why strategy is so important, he says. If you are only building a granny flat as an investor to increase rent and you are doing so in an area where you aren't likely to see any capital gains from the outlay of cash, there could be better ways to maximise your investment. 'They could be better off going and buying another completely brand new property separately and using that (money) as a deposit,' he says. 'Rather than trying to overcapitalise on an existing asset that might not get the returns.' On the other hand, says Propell Property managing director Michael Pell, granny flats can be a very useful investing strategy for those with existing properties who can't take on a 30 year mortgage in order to generate a passive income. It may suit older couples who may not have the income to service a loan for an investment property but do have a backyard they don't use anymore. 'The costs are relatively minimal to be able to create an extra $500, $600, $700 – $800 a week in rent,' he says. 'You're talking about a $700,000-$800,000 purchase versus a $100,000-$200,000.' BUILDING CONSIDERATIONS Hipages trade Martin Nguyen from Kubra Building Services says it's important to consider both the size of the block and the site conditions, including soil type, slope, and access, before planning a granny flat. While minimum land size varies across states, you generally need to have a block size of at least 450 sqm, he says. hipages cost guides put the average granny flat between $80,000 and $160,000. 'However, if you're after an incredibly high-end finish with top-of-the-line materials and prices, you can expect this to increase,' he says. 'Keep in mind that these costs don't just include the physical build. Preparation of the site, choice of materials, permits and compliance are all items you'll need to factor into your budget.' 'Unfortunately, not all properties are suited for a granny flat. 'If the site has challenging terrain, poor access, or protected vegetation, homeowners may face higher preparation costs or even building restrictions.' When it comes to the build, time frames can vary, but generally it takes three to four months for council approvals to go through and another three to four months at a minimum for construction to be completed, he says. 'Site preparation, the complexity of the build, and how quickly approvals are granted will all impact the timeline of a build,' he adds. 'However, conversions of existing garages or sheds may be completed faster.' GRANNY FLAT CHECKLIST Consider these things when researching the viability of a granny flat. * Your strategy – why are you doing this? Is it to house relatives or to make money? Is there a better way of investing? Seek advice from the experts * Council requirements – what planning restrictions are in place? Check with your local council * Site feasibility – is your land big enough? How will you divide it? Are there easements or slopes? * Financial considerations – how much will it cost? How much can you afford? Should you invest in better quality to attract tenants? Should you buy a prefab home? * Market conditions – what demand is there for rentals? How much rent will you likely earn? If you are housing relatives, will you rent it in the future? If you plan on selling it in the future, will it add to the value or detract from it?
News.com.au
an hour ago
- News.com.au
Footscray home sets record Franco Cozzo would be proud of
A landmark Footscray home has just smashed the suburb's house price record with a $2.665m sale that will see it's new owners picking up heritage, history and their own ballroom. The 26 Nicholson St property changed hands last week for the hefty sum, 18 years after it last set the local benchmark with a $1.25m sale, according to CoreLogic records. One of the suburb's most illustrious addresses, dating back some 120 years, and formerly used as a ballroom, the property has gained more than doubled in price since its last transaction in 2007. Hocking Stuart Yarraville director Leo Dardha said it was the kind of grand sale local furniture-store icon Franco Cozzo would have been proud of. 'I think Franco Cozzo would have had this in his play book, he could see the potential of this working class, inner suburb of Melbourne that is 2km to the Melbourne CBD,' Mr Dardha said. 'He saw its value back then — and we are realising it right now.' 'It was built by a renowned family who ran the local quarry, and 120 years on it's still one of the grandest homes locally.' Mr Cozzo became famous for his furniture adds, and his tireless promotion of 'Foot-a-scray' where one of his stores was based. The Sicilian-born business man even had a biopic made about his life in 2021. He passed away in 2023. The agent said the buyer was a local family that had appreciated the long history of the home named Heaton. 'It was a ballroom in the '70s and people were coming through who had their children's christenings there,' he added. In what he believed to be Footscray's best pocket, Mr Dardha said it was the homes current owners that had returned it to its original use as a house. Despite this, the home did initially pass in at auction, selling a few days afterwards for the record-setting sum — though below its initial $2.8m-$2.9m price guide. The inner-city suburb's last house price record was set at $2.2m by a four-bedroom house at 63 Ballarat Rd in 2022. Mr Dardha said he believed the next owners were considering using the home's ballroom space as a music room, in keeping with its past. The four-bedroom house on a 1300sq m allotment is also one of the larger properties in the suburb, with multiple living spaces and home offices around its expansive floorplan.
News.com.au
an hour ago
- News.com.au
Australia to miss out on lifesaving vehicle escape tech
Australia will miss out on life-saving technology designed to prevent drivers from drowning. Zeekr, a new electric vehicle brand, has developed a safety device that allows occupants to escape from a submerged vehicle. But the technology will only be offered in left-hand-drive markets, such as China, for now. . Zeekr's decision to deny Australian drivers new safety tech comes as a rising number of motorists fall victim to floodwater. Dr Francois Flocard, director of industry research at UNSW's Water Research Laboratory, said 'the number of fatalities in vehicles has increased in the last 15 years'. 'The feature you mentioned is interesting and definitely can help people', Dr Francois said. 'By the time water crosses the window, it's already very dangerous and almost too late.' Zeekr's tech a world first. It works with a lever tucked away near the driver's knees. A quick tug of a cable activates a window-breaking hammer within the driver's door that strikes the bottom of the window glass. Once triggered, the hammer can displace up to 3,000 newtons of force to shatter the window. This is approximately 33 times the impact strength of a typical safety hammer, equivalent to the force of five adults simultaneously smashing into the window. More than 100,000 vehicles across Australia are equipped with electric door handles which may fail to operate when submerged in water. Earlier this year, it was revealed that not all vehicles have a manual door release mechanism as a backup in the event of a power failure. Power-operated doors use a car's 12-volt battery – not the high-voltage battery used to power electric cars – to enable occupants to exit the vehicle with the press of a button. If the car's 12V battery dies or gets disconnected after an impact, occupants must use a manual door release function to exit the vehicle quickly. Vehicle safety body ANCAP recently added vehicle submergence to its safety assessment criteria, a move aimed at helping first responders access trapped occupants and ensuring safe egress during flooding events. Carla Hoorweg, ANCAP's chief executive, said, 'in recent years, we've seen a number of significant flooding events across Australia'. 'The number of new vehicle models fitted with electric door opening is also increasing,' she said. 'Combined, these aspects highlight the strong need for this emergency access capability to help prevent unnecessary loss of lives.' When a car is submerged, water pressure makes it nearly impossible to open the doors. Additionally, electric door and window switches may also fail. ANCAP awards points in the Adult Occupant Protection assessment for vehicles equipped with effective submergence countermeasures. Manufacturers may offer alternative methods to open windows if standard measures are not demonstrated. Emergency glass hammers are an alternative means of egress that car manufacturers can opt to implement during ANCAP testing. Professor Giesbrecht, a world-renowned expert in vehicle submersions based in Canada, said the biggest danger isn't water – it's time. 'You get people who are awake and functional who drown because they don't know how to escape,' he said. Many people make the mistake of believing their car will protect them or that waiting for help is the safest option. But in a flood event, even emergency services can't respond in time. So Zeekr's groundbreaking solution offers a potential lifeline in these situations. Unfortunately, the brand can't justify a compelling business case to introduce this safety technology in Australia. And it is a decision that highlights a concerning trend in the current automotive market. Car makers are engaged in an intense EV price war in Australia due to excessive production levels. Unfortunately, this means every dollar counts, and manufacturers can't always justify including features that push up prices for consumers.
