Ryan How do you do it so quickly Wally Doing it with all that project management at our large staff, we’ve got our systems in place. If you’re considering investing in a granny flat or if you want to learn more about investing using granny flats to increase your rental yield, then today’s episode is the perfect episode for you. I sit down with Wally Gabriel from GrannyFlatsSolutions.au and we talk step by step exactly the process that you would have to go through if you decided that you wanted to go ahead and build a granny flat on your property. We talk about how much.
It’s going to cost, we talk about the time lag between each different step, and we talk about the fact that within from start to end from the day that you decide to build the granny flat to the day the tenant moves in can be done in as little as 5 months and for as little as about $100 000. This episode is brought to you by NorthDakotaOilHousing. If you’re interested in rental yields of ‘ or more then head over to NorthDakotaOilHousing to find out more information about this great opportunity.
Now Wally built 80 to 100 granny flats per year. Not himself, his company does and he has project managers on every single build that he does. He knows a lot about building granny flats, a lot about the design process and the approval criteria, and getting the build done, so that’s why I wanted to sit down and go step by step through exactly how to do it, so you, sitting on your couch or listening to this podcast in your car or at the gym, can go home and say ‘ok, that’s so easy I could that this afternoon, I could.
How To Build A Granny Flat A Step By Step Guide Ep113
Do that tomorrow morning, and I could get that done to increase the rental yield of my property’. Here we go, over to Wally Gabriel form GrannyFlatsSolutions.au. Ryan Alright, so now let’s go into the step by step guide to from day that I’ve decided as a homeowner or an investor that I’m thinking about investing in a granny flat what’s the first step that I need to take now that I’m interested. Is it to visit your website and to talk to you Wally Yeah, an owner casually gives a call.
First so we can sort of talk to them, find out exactly what it is they want what’s their intention, what’s their budget and son. Everything we do is customized so we want to understand what the client needs first, so yeah first this is give us a call. We normally ask for a few documents from them, these are things like a sewage diagram, one for our planning’s meeting the council and so on..Geologist before we go out there just to make sure there are no restriction or anything that can prevent your building.
The next step is that we go out there, assess the site and come back with some options in terms of what can or can’t be built, pricing options and so on. Ryan So every site is going to be different, so what people can build is going to be different. What are the restrictions that people need to think about on their side, like I heard your site needs to be at least 450 meters squared are there any other constraints that people need to consider if they’re interested in building granny flats.
Wally Yeah, absolutely. Minimum requirements are 450 square meters for the property size. If you have a 450 metre squared block it doesn’t necessarily guarantee you can fit a granny flat, so it is important to have a look at the site first. But apart from the 450, you need to make sure have a 12 meter frontage, which is away of the block. You need to assess whether there are any large trees in the backyard. Generally a tree that’s greater than 6 metres tall, we need to make sure we keep a certain distance away from it, about 3 metres. So.
We got to look at trees, we got to look at whether the site is affected by any bush fire, flooding, heritage, acid sulphite soils there are all of these potential hazards that need to be assessed because again that could prevent you or maybe add a lot more cost to the development that somebody wasn’t expecting. Ryan Ok. So how do people go about finding out whether they’ve got these hazards At what stage are we looking at that Wally We would only ask you for that initially because that allows us to do what we are to.
Do to make sure if we are dealing with that, then we want to give our clients the best possible advice. We normally suggest they go to their local council and can get a 149 application which costs $53 in most councils. And that report actually outlines each one of ours crossable criteria and it says whether or not the block is affected by it or not. That to me is the first investment a client should make, that $53 report to council, and that way they would know before they spend another dollar whether or not the property.
Is going to be possible to build a granny flat or not. Ryan Ok. To people get that, do they have to go in to see their local council or give them a call on the phone, visit their website Do you know how to go about that process Wally Yes, most councils now have an online application where you can just download an application form, fill it out. Some, you can just fill them out online and press send and it goes through, others you have to download the form and email or fax it. Normally one.
Page form, all they’re asking for is your details, the property details and that’s pretty much it. It’s pretty straight forward. Ryan So it’s a pretty simple form and as you said really cheap just $50 or just a little bit over $50. So, we’ve got that form, we’ve provided you with information the 149 form and our sewage diagram as well you then would just talk to us about our needs and what we want to achieve and what’s our budget what would then happen after that Would it be you come to the site,.
Inspect it and show us what we could do Wally Yeah, pretty much spot on. We go out there, have look. Just look at all those other restrictions where the sewer line runs, whether there are any trees, whether there are any access issues and so on. From there we’d give you some advice on where we think the building would sit nicely. We’d then come back, put together a proposal for the clients based on what they’ve asked us to provide and from there once they’we got that quote, it’s pretty detailed, it’s pretty lenghty.
Quengly playful. When you’re building a house or a granny flat you’re not spending $10, you’re spending a bit of money so you want to make sure what you’re getting is what you want so. Our quotes are quite detailed, there will be no mistakes in what you’re getting. Ryan So that first inspection that you do with the property does that cost people any money Wally No, not at all. Ryan Ok so, so far it’s been pretty simple. All we’ve had to do is get $53 report if we.
Didn’t have it already and then you’re helping us through every step of the way and you’re helping us understand exactly what we can fit within our budget, and what our site can offer. So let’s say, ok we’ve spoken to you, you’ve come and assessed our site, you’ve provided us with a quote of property that we’re happy with what are the next steps to going about getting the approval and getting the property built Obviously guys, we’re talking about New South Wales here, who has recently had these restriction on granny flats.
And become a lot more linear, so for other states this may not apply. Wally So the next step is happy to go ahead and start what we call design process where we send surveillance to the property and surveys comes back to us with all the property details, boundaries levels, neighbouring properties, easements, all those things which are important for a design. We then get the clients to fill out a quick check list and terms what it is exactly they want will they come up with some concepts, sit with a client,.
Make sure they are happy with it. So basically as I said, because it is custom design, we’re putting in our thoughts plus their thoughts and try to come up with something that they are happy with ultimately. Ryan So just to clarify that initial when you initially visit the site and you do a quote ,we haven’t gone through design options with the customer yet is that correct Wally We sort of briefly touched on where we think you could treat, what shape might the building be, how many bedroom, that type.
Of information in you know how many initially. Ryan Okay and so then we go through the design process with you in more detail after the survey is done and what sort of design options would a customer have with a granny flat Wally It really is a limited because as I said what we like to set ourselves a part where everyone used to say that you don’t have to pick a standard a design. Let us look at your property, let us design something that we think is going to suit you. We are basically starting on a blank canvas on every.
Project, you can tell us whether you want brick whether you want cladding, whether you want toad roof, or coloured one, or carpet or tiles and really it is endless. All you are limited is with clients budget, it is just the space. Where we can’t go any larger than 60 square meters so let’s be clever with our designs as well in terms of putting materials and trying to get maximum exposure in terms of North and South and things like that. That’s something that we hope that we’d whole process.
Ryan So 60 square meters which is the limitation for a granny flat, what can we feet in 60 square Meters and is it like a good size property or is it bit nooky and difficult to live in Wally Finding is 60 m2 sounds small and when you compare it to a normal house it probably is small but when you will actually be quite surprised. At 60 m2 you’ll feet two decent sized bedrooms with wardrobes, kitchen I can play in kitchen, dining, living space, bathroom, laundry. It’s a fully selfcompatible homes so that pretty much that can fit.
Ryan It’s all about being smart with your design I’m guessing and not taking space where you don’t need space and taking advantage of open plan living and stuff like that. So it’s exciting to think that you could build a granny flat that is two bedroom granny flat for around a hundred thousand dollars or just a little bit more. Let’s say, so we go through the design process with the customer, obviously that’s going to vary from person to person as to exactly what they want in the property. Let’s say that we agree on a design with you.
What’s the next step after that Wally Next step is will they go through that with them make sure that you know it’s still I’m sorry, I”ll take a step back. What would you do in that design process is we are trying to stick to the brief that they’ve given us initially so that quite we give you initially and then what it ends up being designed and not completely different buildings. So for example if we you on a club building and then you to design on which side you want to get a brick then obviously that is.
Going to affect your price so what we did before, when the designs is complete will they look back at that price just to make sure that we are still on budget. We haven’t. your $100,000 budged doesn’t all of a sudden come 150,000. That’s the first step. Once you are happy with that the price and offer we then go to the approval stage whereby we are now consulting all the engineers, Prada certifiers, all the relevant consultants, authorities and so on just to get through the whole process and get everything approved.
Ryan Yeah so without approval process as the home owner or the property investor who owns the property is getting this built, is there anything that we actually need to do Do we need to go to council and get this stuff approved or is it is all done through your builder Wally We do actually everything. So it’s all done in house, so we obviously got contact to engineers and so on. We organize all of that, get all the paperwork done launched and then basically come back to you at the.
End of the day with the whole paperwork all signed and approved and ready to go. Ryan So if people wanted to do it themselves and then they have to get in contact with all these different people who could do the correct surveys and lodge the forms and stuff for the. I guess that’s the benefit of a Granny flat solution, is that you guys have all the contacts. You do 80 100 per year so you got to have it down pal you got to know what you are doing. So what are we looking at the time frame for getting the approval process.
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Six to eight weeks. They used to be the order 10 day approval process in New South Wales as of the 22nd February, it was only two weeks ago. That was scrapped. So it’s still a quick process still the same process bit it’s no longer a quick tenday approval. It’s more like when the application is launched, neighbours have to be notified for 14 days and even after that certify approves up to forty days, we then got to give them another seven days’ notice before we can start building. That 10day approval process no longer exists.
It is more like, it is more like 3 4 week process for approval and then the design process itself is usually two to four weeks as well. So depending on how many changes and so people want to make it could be done as quick as about six weeks from the time they set the proposal till the time everything is stamped and ready to start building. Ryan IOK so that’s still. it’s not an extremely long period of time. Obviously it’s not as good as ten days but it’s a very short period of time. So our proposal thing goes through,.
You obviously do that for us and then we get approval and then building starts. How long. what happens throughout the building process what should people expect with building site , living on a building site and so forth Wally OK so building site we’re not building something in a in a factory and shipping it at site so it is going to be ten to twelve weeks. What we do is obviously to try to minimize disturbance. Again much of our clients are investors so they got tenants up in the front. We do sort of fence off the.
Backyard of the existing house so if there are tenants in there they’ve still got access that side. the house. We’re creating sort of a separate access that works out toward the back so we try to minimize the service as much as possible. We run leads over the fence hoses and everything else, we try not to impact the tenancies what so ever. It is a whole construction your home, you go to expect there is going to be concreteslab lead, carpenters on side, all your typical tradesman and so on.
Ryan Yeah and so the building process from the day that you start building to the day you finish is about 10 to 12 weeks so you are looking in around about the three months. So for people who have built their own house they will know that ten to twelve weeks is actually not that long a period of time to it get a property built. How do you do it so quickly Wally doing that with all that project manager and our large staff and everything else. We’ve got warrant systems in place where.
Before a job starts we’ve got a program for each project, every tradesman knows when he is going to be needed and it sort of allows a process just to flow quite smoothly. Ryan So because you do so many each year I guess each time you do one you get a little bit better and a little bit faster and so that allows you I guess to turn them over. Alright so, we go through our building process and obviously the slide is poured and then we go through a different stages. Now that the building’s finished what’s the sign of.
Process and how quickly can we get tenants in Wally Generally toward the last week or two of a construction we start wrapping up everything by doing it following especially to the owners. Also getting all our paper work documentation waiting till it certifies, doing all of final inspections. So generally by the time that week 10 or week 12 is done, usually within a week from there we’ve got all the follow approvals done and occupation certificates and the owners tend to move in general in about a week of us finishing. Ryan OK, the ten to twelve wake period and.
Then you’ve got people moving in I guess the week after you finish which is quite. again I’m still surprised by just how quickly this process is completed. Look I think that that provides a great overview for anyone who is thinking about potentially investing in a granny flat. I know in all aspects of life sometimes we just get so overwhelmed at the idea that we never go ahead and take the first step but understanding that if we get in contact with you then obviously you will help us through every step of the process. We are going to.
Give you a call, you are going to help us through the design process, you are going to do all that applications for us, if we don’t have that 149 form we can go to our council and we can get it. And then the build is going to take ten to twelve weeks and then we can move in or have a tenant in. So the whole process you are looking at around about five months is that right From the day I call you to the day I have a tenant in the.
Property Wally That’s right, as quick as that. Ryan So for anyone who has been thinking about doing it, then in New South Wales now is a great time to do it. Is this granny flat building restricted to Sydney or can we do it in other areas or is a restricted to just urban areas and not rural areas, what’s the deal Wally Yeah the according to the requirements go to be residential zone so although it’s applicable on all avenue in New South Wales, if you do live in a rural area you may not be able to do it or you might still.
Be able to do it but you have to get approval for councils so it would be a longer approval process. Otherwise the areas like the ACT but different planning requirements that what Sidney does. Ryan And I know you specialize in New South Wales but just for those people who are outside New South Wales, is this something that is still possible for them with just obviously a longer approval process and more difficulty or is it something that’s not really available in other states yet Wally I believe it’s a Baddow in Queensland that a top of all that just yet and that’s.
As far as I know. Sorry, Melbourne as well. Melbourne was always being well before Sidney was doing it, granny flats have been a bit more traditional in Melbourne than they have been Sydney. More on the eastern side , you’ve got Queensland as wells as Melbourne do allow it but they do have all different requirements in legislation so check with your council. Ryan So if you are in New South Wales then get in contact with Wally by going to GrannyFlatSolutions.au and checking him out and then if you’re in other states maybe just do a Google search.
To find a granny flat providers. Lastly I just last want to ask one final question, with a company like yours someone who specializes in doing granny flats, what’s the advantage of using your company over say a local builder Wally I guess with our buying power and the fact would have been this is what we specialize in. And all our consultants and drawings, documentation is pretty spoton so you know that from the initial design stage to point when you start building there is no discrepancies. We do a lot of construction with using other.
People’s plans which is great, no problem with that but there have been times when something’s missing it could create some confusion during building and so on. So at least we ask you you’re picking all your materials, you’re picking everything from the beginning, there is no grey areas and again part of that fact is that what we do best, that’s what we specialize in, and the fact that we can do it in 10 to 12 weeks. We’re not just jumping onto your job and come back to when we’re ready. You know you got your own designated.
Project manager and you got a contact person throughout the whole stage in state job to make sure time frame. So you know it’s pretty safe. Ryan It’s going to be a using the granny flat company like yours it’s going to be a smooth transition from the design because you guys do so many lodgements with counsel to get these approves that you know what designs are going to get approved and what’s not. So throughout the design process the owner who is getting it built can know that you’ve.
Got the right layout, you’re picking the right materials. I’m guessing with the limitation at the 60 square foot you know that the layouts are going to be a great living space as well because without constraint if you get things wrong you know it could be a difficult property to live in. And then the construction phase with your own project manager is going to be extremely fast, ten to twelve weeks. Well thank you so much Wally a for talking us through exactly how to get a granny flat built and obviously it’s an extremely valuable thing.
That people can do to increase their rental income or to turn a negatively geared property into a positive cash flow property. Lastly are you finding that most people doing this are homeowners or do you find it’s more investors Wally I would say a larger portion are investors, probably about 6040. 60 reinvests and the other 40 would be home owners. Ryan And we talked about in the last episode if people want to check that out, when getting your property revalued what you’re finding is that with the bank, you are going to get.
Dollar for dollar for your granny flat. So getting that property revalued you are going to. if you had to turn around and sell it tomorrow then you probably going to get a dollar for the dollar that you spent on the property. So at this point in time we’re not clear whether it actually increases the value of your property but obviously having that extra rental income for someone who is buying that property and holding it can be extremely valuable and can pay off from the day someone moves in. So guys if you want to get in contact.
With Wally just head over to his website GrannyFlatSolutions.au and Wally thank you so much for having you on and if I get questions and stuff like that I’ll probably hit you up again so we can talk about this in more detail. Wally That would be great. Thank you Ryan! Ryan Ok, well you enjoy your day! Wally Thanks mate, you too, cheers! Ryan As you can see who is amazingly shocked and how quick a granny flat can be built, how cheaply it can be built and how easy the process was. I came into this interview and.
I didn’t know the process behind getting a granny flat built so hearing from Wally in hearing from exactly how to do it if I had a property where I could build a granny flat then I would almost certainly go ahead and do it because it just sounded so easy. I’m sure it’s not as easy as it sounded but the good thing is when you get someone like Wally to build it for you, they deal with all the issues, not you! And so I hope that you enjoyed.