If the council allows Complying Development on the property (check your Section 149 Planning Certificate in the Sales Contract), then you can fast track the approval process and have a private certifier issue approval within ten days.
As one of the development strategies we offer, Property Bloom finds properties suitable for a complying development. We’ll then manage all the fine details to create a high yielding investment for our clients.
The policy introduced by the NSW Government is a fabulous strategy as it allows more property owners to add value to their homes or investments in the short and long term. From a development perspective, it can be a quick and easy way to build your property portfolio and create high rental yields. Owners can benefit from cash-flow from the rent on two dwellings and also receive good depreciation benefits on the new flat (if being rented). This means people can keep moving forward with their investment strategy. Unlike buying a single apartment for instance around Sydney which is likely to be negatively geared, adding a granny flat to a property with an existing dwelling can result in a cash-flow positive situation.
In the past granny flats were only permitted in certain residential zones, but this SEPP has opened up a whole new real estate door. The aim of the granny flat is to boost the supply of affordable rentals by providing housing for the elderly so families can support each other, as well as the younger generation who are living at home and are not in a position to move out just yet.
Government projections show us that single-person households are likely to be the fastest growing sector over the next 20 years, so demand is definitely there.
Small secondary dwellings are an attractive option for singles and couples who don't need a lot of room and are the most likely people to be under rental stress. Young people are also staying at home longer and granny flats can provide extra space for them and be a lifesaver for Baby Boomers who were hoping to empty their nest some time soon.
This policy means that if you have a block over the size of 450sqm you are able to build a granny flat no larger than 60sqm on your existing property; you may get approval in approximately 10 days as long as it is complying with the council’s regulations.
Property Bloom focuses on developing property, including granny flat developments, in the Hunter Region on NSW due to its affordability and strong, diverse economy. The area is earmarked for long term growth in the NSW government’s Lower Hunter Regional Strategy. The 25 year plan, provides for 160 000 new residents and 66 000 new jobs.
Local industry includes manufacturing, mining, retail, construction and tourism.
In the Hunter, Property Bloom locates properties priced around $250,000 that may need a small cosmetic renovation. With the addition of a two bedroom granny flat, which we build for around $105,000; it’s a really affordable investment and a great way to dip your toe into property development. These projects are creating a 7-9% gross rental yield. This type of development suits someone starting out in developing or an investor looking to create a cash flow positive investment.
To take advantage of the NSW Government’s Affordable Rental Housing - State Environmental Planning Policy (SEPP) the regulations include:
· Granny flat must be no more than 60sqm in size
· Land must be more than 450sqm
· Can only be one house and one granny flat on the land
· The land cannot be subdivided
· It meets the requirements of the Building Code of Australia
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