This week Ipswich and Logan Granny Flats bring news of a change in the makeup of the Australian property market. The article below details the disparity between the great Australian dream of owning your own home and the harsh reality that some areas of Australia may soon have more than half the population renting, like New York. Affordability, investor domination of the market and the cost of stamp duty are the major hurdles standing in the way of young people today, 90% of whom still cherish the dream of home ownership.
​
Enjoy…

​Annabel Hennessy | The Daily Telegraph
17 December, 2017

SYDNEY is turning into a city of renters as rising prices force more people to ditch the homeowning dream.

Experts report an increasing number of people choosing to rent rather than buy and predict Sydney could soon turn into a city like New York, where more than half of the population rents.

In some Sydney suburbs the rate of renters has already topped 60 per cent.

​Real estate giant L J Hooker tips the rise of the renter to be one of the biggest property trends in 2017. Hooker research head Mark Tiller said affordability and investor domination of the market were driving factors.

“House prices are continuing to rise but, because of the increase of apartment supply in particular suburbs and the rise of investor numbers, we could see rents soften for units in some areas in 2017,” Mr Tiller said.

“The cost of transaction in terms of stamp duty also makes buying less achievable, which is also driving more people to rent.”

​While just 30 per cent of the Australian population rents, Bureau of Statistics data shows that in popular suburbs such as Potts Point the number of renters has risen to beyond 60 per cent.

McCrindle research director Eliane Miles said while home ownership was still a major aspiration, it was ­simply affordability stopping young people from buying.

“We did some research that showed 90 per cent of Australians still want to strive towards owning their own home,” Ms Miles said.

“It’s still the Aussie dream, it’s just more difficult and I think for young people it seems incredibly far off.”

Real Institute of NSW president John Cunningham said: “I don’t want to see Sydney turning into New York where the majority of people rent but it could happen.

“This is why we think the stamp duty system in NSW needs an overhaul, to make it easier for young people.”

Mahnam and Michael Mogaddam rent a granny flat in Baulkham Hills but are lucky enough to have bought a block of land nearby where they hope to build soon.

There were times when they nearly gave up on the homeownership dream.

“It’s really horrible. We’d have to live 45 minutes away for our family to get something affordable,” Ms Mogaddam­ said.

​“There were several times I said that we should think about just continuing to rent but we want to own a house so we can make it easier for our children and pass it on to them.”

This week, Ipswich and Logan Granny Flats bring you an excellent article on the growing demand for Granny Flats. With housing prices continuing to climb and the suburban population explosion, building a Granny Flat has never sounded better. Owners are typically able to achieve 15% rental yield, with the average rent at $283 p/week. While for renters, Granny Flats provide privacy, a massive drawcard over share housing for very little more money p/week.  It’s a win win situation.

​Read and Enjoy…

​Julia Corderoy | news.com.au
14 January, 2017 

​YOU could become a property investor without looking beyond your own backyard. The Granny flat is making a comeback, it has nothing to do with your grandparents, and it could be a gold mine for homeowners.
 
No longer regarded as just a quick, budget solution to housing your ageing relatives, Granny Flat-living is having a bit of a renaissance.
 
State governments are becoming more open to the building and use of Granny Flats — the New South Wales government overhauled its regulation regarding Granny Flats in 2009, as an example — and the designs are becoming smarter, more modern and more liveable too. So much so, that Granny Flats perhaps shouldn’t even be labelled “granny” anymore.
 
According to data from Flatmates.com.au, Granny Flat listings as private rentals on the site increased by 16 per cent in 2016, nationally, while searches for Granny Flat accommodation increased by 84 per cent in the last quarter alone. In Perth, the number of Granny Flats listed on the site rose a whopping 56 per cent in 2016.
 
More and more renters are opting for Granny Flats over share housing and savvy homeowners can capitalise on this.
 
THE ANSWER TO HOUSING AFFORDABILITY?
Thomas Clement, the CEO of Flatmates.com.au, said the resurgence of the Granny Flat is “absolutely” driven by rising real estate prices and affordability pressures. And both sides of the equation — owners and renters — are looking for ways to reap benefits in a heated market.
 
“There are a lot of people in their 20s and 30s that struggle to afford accommodation, particularly in the main city centres,” Mr Clements told news.com.au.
 
“It is also driven by the fact that there is so much money in property in Australia and people are looking at their property and asking how they can utilise that asset better and make more money out of it ... It is a great way of supplementing their income.”
 
The national average weekly rent a homeowner can receive from privately renting out a Granny Flat is $283, according to data crunched by Flatmates.com.au. But in Sydney, homeowners are receiving an average of $346, equating to an average of $17,992 in rental income a year.
 
In Perth, where Granny Flat listings rose the most in 2016, homeowners are receiving an average of $257 a week, equating to $13,364 per annum.
 
By comparison, the national average weekly rent for a private room in a share house on Flatmates.com.au was $220 per week in 2016.
 
Granny Flat Finder, an online service which compares Granny Flat designs and builders for consumers, has had an increase in inquiries every year since the company started in 2010.
 
“It has literally been month-on-month growth in inquiries,” Harry Laos, Senior Project Manager of Granny Flat Finder told news.com.au.
 
“But the demand for Granny Flats really started taking off around 2011 because it became a good idea in investment property circles.”
 
Pretty soon after that, Mr Laos explained, everyday homeowners were clueing in and really beginning to add fuel to the resurgence.
 
“More and more we are seeing your everyday mum and dad couples reaching their retirement years, and even younger couples, wanting to divide their backyard with a partition or hedge, build a Granny Flat, and rent it out to pay off their mortgage sooner.”
 
The average cost to build a Granny Flat, according to Mr Laos, will set a homeowner back somewhere in the vicinity of $1,600 to $2,000 per square metre, depending on the size. For a two-bedroom, 60sqm granny flat — the most popular for homeowners inquiring with Granny Flat Finder — will cost around $105,000 to $125,000 in total to build.
 
A 2015 analysis by BMT Tax Depreciation suggested the average cost of a Granny Flat to be $121,000 to construct. The tax firm, which collected data from thousands of its depreciation schedules, also suggested that property owners are typically able to achieve annual rental yields of 15 per cent on this investment.

WHAT ARE THE RULES?
The regulations regarding the construction of Granny Flats and who can live in them varies from state to state, but a change is in the air.
 
Traditionally, as the name suggests, a Granny flat was for the sole purpose of housing family, with regulations restricting the construction and private rentals of these backyard properties. And in some states, such as Victoria, this is still the case. But for others, such as New South Wales, the government has adapted.
 
In 2009, as a part of the New South Wales government’s diverse and affordable housing agenda, it overhauled its regulation governing Granny Flats, making them much easier and faster to build. As a part of the Affordable Rental Housing State Environmental Planning Policy 2009, otherwise known as the ‘SEPP’, a Granny Flat can be built in all residential zones and can be approved as a complying development in just 10 days, subject to minimum requirements.
​
These requirements state that the lot size must be at least 450sqm, the Granny Flat must have a floor space no larger than 60sqm, the lot cannot be subdivided and there is only one house and one Granny Flat on the lot.
 
Western Australian, the Northern Territory, Tasmania and the ACT have similar regulations. All allow property owners to easily build a secondary dwelling and then rent it to those other than family members.
 
Victoria, on the other hand, has some of the toughest regulations surrounding Granny Flats in the nation.
 
It varies from council to council but typically those wanting to build an extra home in their garden have to prove that the future occupant is a dependent person, such as a teenager or disabled elderly parent. The Granny Flat must also be removed if the person dies or moves out.
 
But now, a change.org petition by Small Change Design and Construction calling on the Victorian government to introduce laws similar to NSW has received more than 2,000 signatures. And according to an article published by The Age in January last year, the Victorian government has pledged to review the rules.
 
The Age quotes Acting Planning Minister Lisa Neville saying the government was “making sure planning rules keep pace with people’s needs.”
 
Queensland and South Australia have similarly restrictive regulations.
 
WHAT ARE THE RISKS?
Building an investment property in your own backyard certainly has potential to be a gold mine, however, it isn’t without its risks. The biggest risk being how it could affect the value of your property.
 
While it very well could be a drawcard for some buyers and aid its value, it could also do the opposite. Adding an extra property on the land which cannot be on a separate ownership title and therefore cannot be sold separately, could decrease the pool of interested buyers and decrease its overall value.
 
In addition, homeowners should be wary of its impact on privacy. As you cannot subdivide the lot to build a Granny Flat, you are ultimately sharing your space with others.
 
“You have to ask if the financial incentive of having that extra income stream is worth the personal choice of sacrificing some privacy, potentially, in your backyard,” Mr Laos said.
 
“Some backyards are made for Granny Flats and work very well — they separate very nicely between the main house — but others simply don’t, so you can really be sharing a lot of space with other tenants.”

This week Ipswich and Logan Granny Flats bring great news for investors! CoreLogic have released the highest performing suburbs for rental yield with Logan and Ipswich dominating the leader board! While houses in Riverview, Ipswich are netting a 6.3% gross rental yield, imagine what adding a Granny Flat in the backyard could do for your Return of Investment.
 
Our Case Studies prove that Doubling your Rent Return is not only a possibility but a probability!
 
Enjoy …

​Michelle Hele | The Courier Mail
27 December, 2016

 Outer Brisbane suburbs were the real winners for investment property owners in the past year with new figures revealing they gave owners the best rental yields.
 
The latest figures from CoreLogic show Hillcrest, Woodridge and Mount Warren Park in the Logan Council area tied for top spot with the highest median gross rental yield for units of 7.2 per cent.
 
In the house market it was Riverview at Ipswich which had the best result with a yield of 6.3 per cent.

No suburbs within the Brisbane City Council region featured in the top performing investment suburbs for units or houses.

Logan dominated the list, with entries also from Ipswich, Moreton Bay and Redland.
 
What all the top yielding suburbs had in common was that they had very low median house or unit prices.
 
The cheapest of those top yielding suburbs for houses was at Russell Island in Redland Council region, where the median house value was $215,408 and the gross rental yield 5.9 per cent.
 
For units it was Woodridge which had a median value of $199,757.
 
Closer to the Brisbane CBD, Rocklea, Keperra and Fig Tree Pocket were the strongest performers in the house market, while Oxley, Darra and Brisbane CBD lead the unit market.

Jillian Clifford | Smartline Personal Mortgage Advisors
16 December, 2016

One of the biggest property valuation firms in Australia produces one of the best property reports available. 

Herron Todd White has over 60 offices around Australia and they collate local feedback from their valuers to produce this monthly report.

Some of the more interesting locations on this clock are:   
​

• Sydney, Adelaide & Canberra (rising market),  
• Melbourne (approaching peak of market),  
• Newcastle and NSW Central Coast (peak of market),  
• Perth (bottom of market) and
• Brisbane & Hobart (start of recovery).

​Sophie Foster | News Corp Australia Network
24 October, 2016

​GREATER BRISBANE MARKET:
Growth:
MORETON BAY: Arana Hills; Banksia Beach, Beachmere; Bellara; Bray Park; Deception Bay; Narangba; Ningi; Redcliffe (houses and units); Rothwell.

INNER: Bardon

NORTH: Bald Hills, Brighton, Fitzgibbon, Hendra

SOUTH: Darra Eight, Mile Plains, Heathwood

REDLAND: Birkdale, Redland Bay, Victoria Point

LOGAN: Edens Landing, Jimboomba, Slacks Creek, Waterford, Windaroo, Yarrabilba

IPSWICH: Raceview, Redbank Plains

Plateau:
MORETON BAY: Albany Creek, Bongaree, Burpengary, Burpengary East, Caboolture, Clontarf, Eatons Hill, Everton Hills, Kallangur, Lawnton, North Lakes, Petrie, Sandstone Point, Scarborough, Strathpine, Upper Caboolture, Warner, Woody Point

INNER: Brisbane City, Coorparoo, Highgate Hill, Kangaroo Point, New Farm, Paddington, Spring Hill, Teneriffe

NORTH: Ashgrove, Aspley, Bridgeman Downs, Chermside, Clayfield, Enoggera, Grange, Hamilton, Kedron, Mitchelton, Northgate, Taigum, Wavell Heights, Wilston, Windsor, Wooloowin

EAST: Balmoral, Carina Heights, Carindale, East Brisbane, Manly, Manly West, Tingalpa, Wynnum, Zillmere

WEST: Chapel Hill, Kenmore, St Lucia, Taringa, The Gap, Toowong

SOUTH: Acacia Ridge, Algester, Annerley, Corinda, Drewvale, Durack, Forest Lake, Greenslopes, Holland Park, Holland Park West, Inala, Kuraby, Macgregor, Moorooka, Oxley, Parkinson, Salisbury, Sunnybank Hills, Mount Gravatt East, Tarragindi, Upper Mount Gravatt

REDLAND: Alexandra Hills, Capalaba, Cleveland, Thornlands.

LOGAN: Beenleigh, Bethania, Boronia Heights, Cornubia, Crestmead, Daisy Hill, Eagleby, Greenbank, Heritage Park, Hillcrest, Kingston, Logan Central, Logan Reserve, Loganholme, Loganlea, Marsden, Mount Warren Park, Regents Park, Rochedale South, Shailer Park, Springwood, Tanah Merah, Waterford West, Woodridge

IPSWICH: Bellbird Park, Brassall, Bundamba, Goodna, Springfield, Springfield Lakes

Consistency:
MORETON BAY: Caboolture South, Cashmere, Ferny Hills, Margate, Kippa-Ring, Murrumba Downs.

INNER: Auchenflower, Woolloongabba.

NORTH: Alderley, Ascot, Banyo, Bracken Ridge, Carseldine, Ferny Grove, Stafford Heights

EAST: Bulimba, Camp Hill, Cannon Hill, Murarrie, Wakerley, Wynnum West.

WEST: Bellbowrie, Indooroopilly, Jindalee, Moggill, Graceville, Sinnamon Park.

SOUTH: Mansfield, Runcorn, Sunnybank, Wishart

REDLAND: Mount Cotton, Wellington Point, Ormiston

LOGAN: Underwood

IPSWICH: Camira, Eastern Heights
​
Danger Markets:
INNER: Fortitude Valley (Units), South Brisbane (Units), West End (Units)
(Source: Hotspotting)

​Brisbane City Council Media Statement
August 30, 2016

Lord Mayor Graham Quirk will implement new incentives to attract more inner suburban aged care facilities to meet the challenges of providing for an aging population and help secure the future of the city’s aging residents.

The new incentives include reducing development infrastructure charges by 33 per cent for a three year period similar to the successful measures that led to about 1,000 new hotel rooms and 5,000 new student accommodation beds in recent years.

An additional two storeys will be allowed in medium and high density locations where best practice design standards are met and Council will consider proposals in privately owned sport and recreation areas but only where a clear community benefit is incorporated into the facility.

Cr Quirk said the range of incentives included future amendments to City Plan 2014 that would offer a more streamlined approach to extending or upgrading existing aged care and retirement living, as well as providing greater opportunities and better design outcomes for new facilities.
​
“The reality is we can’t just have our retirement villages and aged care facilities on the outskirts of the city – that’s not meeting the needs of our aging residents,” he said.

“It’s important that people should be able to retire and go into aged care in the areas they are familiar with, where they have their social structure and friendship, their shopping precincts and the medical and other professional services available to them.

“Many of our suburbs provide housing options for younger residents and families and we are looking to provide more accommodation options for our older local residents, so we are not left with the perverse situation where retirees do not have the facilities to stay in Brisbane.

“In the past six years there has been an average of less than 1,000 new aged care rooms and retirement units – over the next 12 years there is a forecast average annual increase of 3,600 persons that may require dedicated retirement or aged care accommodation.”

There were just 49 development approvals from 2010-2015 that delivered a combined 5,159 new aged care rooms, retirement units and aged care rooms. The current 70 plus population of Brisbane is 90,080 and projected to increase by 50 per cent to 2027.
​
Cr Quirk said Council had already made planning changes to help aged residents stay in their neighbourhoods such as increasing the permitted size of granny flats, but would go further.

“There is a strategic and growing need for these facilities in our city to cater for an aging population. Revisions to the City Plan will include a new code specifically for assessing aged care and retirement living development applications, encouraging co-location with other uses such as churches and medical facilities and revising some levels of assessment,” he said.

“The industry will be expected to meet best practice design standards including stronger open space requirements and greater connectivity with the surrounding community.
​
“These new incentives will allow Brisbane residents to remain in accommodation that is accessible to public transport, shops, healthcare and family.”

This week, Ipswich and Logan Granny Flats bring to you an inspirational article on how granny flats are becoming more and more stylish, modern and exciting. If you’re feeling like your granny flat needs a spruce up or renovation, check out what these savvy investors are doing to keep things comfortable and in-style!
Read and enjoy…

Aidan Devine | The Sunday Telegraph
October 15, 2016 

FORGET boxy backyard studios with a kitchenette — Sydney granny flats are growing ever more palatial as homebuyers sink big money into luxuries like walk-in wardrobes, hot tubs and alfresco dining areas.
​
Construction data shows homeowners are currently embarking on more granny flat projects than at any time in the city’s history, with buyers shelling up to $300,000 on their backyard homes.
The big spending followed a record slump in house sales: there are 20 per cent less freestanding houses available across the city than there was a year ago and less than half the number listed in 2011, according to Core Logic.

Amid this low listing environment, building a granny flat has become a popular alternative to moving house or investing in additional properties because the flats are easier to attain, said Bungalow Homes director Chris Willougby.

Even with luxury trimmings, the homes tend to be cheaper than other options such as apartments, which can price from $600,000 to over $1 million in some suburbs.

“It’s a popular option for families with grown-up kids,” Mr Willoughby said.
​
“A lot of parents are building granny flats hoping their children will live in them over their 20s. Some intend to eventually swap when grandkids come along. They’ll live in the granny flat and their kids will take the main house.”

Such strategies have been encouraged by affordable housing provisions set out in state planning policies in 2009. The provisions allow property owners to build granny flats bigger and better than before, without the lengthy council approval process required in other states.

“The way people think about granny flats has evolved,” Homeplusone founder Paul Rosasqui said.

“They are like mini-houses now and people want all the bells and whistles, like downlights, Caesarstone benches and big tiles.

“On some properties, the granny flat looks better than the primary house.”
​
Granny flats also fulfill many people’s desire for a garden: Westpac’s Home Ownership 2016 Report, released Friday, revealed having some semblance of a backyard still remains a priority for more than half of Australian buyers.

Sue Parish, 54, typifies the flexible family living arrangements granny flats allow. She is moving into a granny flat she built out back of her sister’s Mona Vale home and said she is making the move to avoid living in an apartment.
​
“I needed to move house, but after looking at the apartments available, I became certain they weren’t for me, so I paid for a granny flat,” she said.

Sophie Ly and husband Ben Bryant are putting the finishing touches to a granny flat on their Pendle Hill property after previously considering an investment property purchase.

Ms Ly said the couple decided a granny flat was less risky.
​
“Everything is so expensive at the moment,” she said. “We want to see how the market goes and a granny flat seems like a safe way to park our money in the meantime.”

IT’S THE new trend taking Sydney’s housing boom down a very different track.
Skyrocketing property prices have encouraged inventive homebuyers to take a new ­approach to building a home, converting old train carriages into detached houses, granny flats and guesthouses.

Recent sales show the concept is picking up steam.

A Blue Mountains home converted from a 1929 sleeper carriage sold in June for $286,000, while two carriages joined together on an acreage outside Nowra sold in August for over $500,000.
​
A 16ha estate near Mittagong in the Southern Highlands sold last week for $2.8 million, complete with a 1910-era train carriage set up as a six-bedroom guesthouse.

Another home at Dural in Sydney’s northwest has an ­entertainer’s retreat out back built from a decommissioned carriage, which helped the home sell for $2.2 million.

Carriages already have plumbing and wiring and are structurally sound. Prices for unconverted carriages range from about $5000 to $40,000.
​
The downside is that they are difficult to move. But train converter Fiona Brown, seller of the Mittagong property, said the charm of train living makes it worth the effort.

“I love trains so the conversion was an interesting project for me,” she said.
​
Gerrard Smith First National agent Paul Crinis said Ms Brown’s train “attracted a lot of what I’d called dreamers. People like it because it offers something different,” he said.

A Canberra-based interior blogger has injected some serious style into her energy efficient, family home.
​
THE HOME A contemporary, solar passive family home and granny flat in the Woden suburb of Hughes. 

WHO LIVES HERE
Style Curator blogger Gina Ciancio, her husband, owner of Tile Republic, Bruno and baby Patrick.

WHAT WE DID

“We wanted to create a new home for ourselves and a granny flat that could generate an income but privacy from the granny flat was important to us,” Gina said. “Our architect Rob Henry came up with a design that made the best use of our block and offered complete privacy from the granny flat. The north-facing orientation with large windows floods the house with natural light and keeps the cost to a minimum.”
​
THE INSPIRATION
Gina searched the internet for design inspiration and found plenty of ideas on home renovation site Houzz. Rob helped them translate these ideas into a home that would suit their needs. “Rob also invited us out to his property to see his house which is clad in the same black metal material so we could see how it looked before locking in this selection.”

OUR ADVICE
“Sit with your design for a few weeks before locking it in,” Gina said. “This was a tip Rob gave us and during that time we made some minor tweaks to the design that seemed small at the time but have made a big difference to how we live in and enjoy our home.” Gina also recommends being flexible as unexpected things will pop up during construction.

Gina searched the internet for design inspiration and found plenty of ideas on home renovation site Houzz. Rob helped them translate these ideas into a home that would suit their needs. “Rob also invited us out to his property to see his house which is clad in the same black metal material so we could see how it looked before locking in this selection.”

********************************************************** 

INTERESTED IN BUILDING A GRANNY FLAT?
 
WANT EXPERT, RELIABLE ADVICE?
 
For more information
CALL SONIA 0403 309 136

This week, Ipswich and Logan Granny Flats bring to you a fantastic article about how granny flats are heightening community spirits and keeping families closer together. With house prices in some suburbs, particularly Sydney, rising and housing availability hitting an all-time low, granny flats give the next generation the headstart they need in the property market – and for the rest of their lives…
Read and enjoy…

GRANNY flats are being used as family homes to house a young generation priced out of the northern beaches property market.

Mum-and-dad homeowners are turning to the granny flat as a way of helping their adult kids stay on the northern beaches.
​
Some homeowners offer the granny flat to their children while others move into the granny flat themselves and offer the main house to the next generation.

Newport couple Maggie and Paul Taylor’s 23-year-old daughter Claire is getting married next month and she and her fiancé are struggling to afford a home. Paul and Maggie have decided to build a two-bedroom granny flat in their garden to help out.

“It will give them a headstart and save us mowing the lawn,” Maggie said.
​
Granny flat builder Paul Mathias of Multidwell in Brookvale said four years ago homeowners built a granny flat in the garden for a second income. Now they are offering the flat to family members who can’t buy on the northern beaches.

“Eighty per cent of the granny flats we now build are for children and grandchildren,” he said.
“Four years ago it was mostly to rent out but now people are buying them to give their children a leg up.

“Parents help their kids and when they do move out in five years or so the parents still have an investment.”
​
Real estate agent Andrew Strong, of LJ Hooker Collaroy, said some parents even sold up entirely to buy a house with a granny flat.

Last weekend seven parties registered to buy a Wheeler Heights property on 1570sq m of land that had the potential for a granny flat. Mr Strong said families competed with builders for the old home at 44 Rose Ave that sold for $1.66 million.

“The new owner will be looking to maximise the potential of the block,” he said.
​
There are 22 homes for sale on the peninsula with self-contained accommodation.