Do you know that you could get a free granny flat in Sydney if you do it in the right way?
Granny Flat Sydney
Let’s face it, in Australian backyards, manicured lawns, flower beds and trampolines are making way for the latest emblem of the country’s booming housing market: granny flats.
As Wall Street Journal observed, with affordable housing scarce in Australia and particularly in Sydney, homeowners build backyard apartments to rent out. These small dwellings, also known as “mother-in-law apartments” or “in-law suites,” are the latest craze in a housing boom that started in Sydney and has now spread to other parts of the country, putting home ownership out of reach of many Australians. This means the weekly rents in Sydney will keep rising in the future.
Free Granny Flat
Yes, Granny Flats can be FREE! The secret is called positive cash flow. Every time you earn an extra $50 to $100 per week from a positive cash flow property, that’s an extra $50 to $100 per week that you don’t have to work for.
Let’s take a look at the figures. You have a vacant backyard, and you add a granny flat. This can be either mortgaged or completely paid off.
You can apply for either an equity loan or a construction loan to fund 100% of the build cost. Let’s say it’s $100,000.
For your information, iBuild has partnered with local granny flat builders in Sydeny to offer our clients turnkey granny flat build from $85,000 + GST). If you use iBuild’s TransPack products and owner build a granny flat yourself, you could put a granny flat together from $10,000 + GST.
Now let’s get back to the maths, and we still assume it’s going to cost $100,000 to build a granny flat. You rent it out for $300 per week after costs. This is an average rental return as reported by many investors in Sydney. So this equates to just over $15,000 per annum. Now, your tenants are paying back the loan at a rate of $300 per week. The time taken to repay the loan plus interest is roughly 7 years.
This means you will repay the loan in 7 years, and afterwards, you have a granny flat in Sydney for free! Moreover, you have a recurring income of $300 every week for the rest of your life and your children’s life. Imagine if you have 5 or 10 such cash cows right now!
Moreover, with iBuild’s more affordable granny flat products, you can own your free granny flat much sooner!
When you are looking at a cash cow, what we are talking about is anything that brings you more income than it costs.
It might seem really simple but basically if you have got all of your income less all of your expenses and whatever you have got left over is positive, you have got yourself a cash cow.
Cash cows are there, cash cows can be made, cash cows can be bought directly, but I personally believe that there is the most money, in making them; by doing manufactured growth strategies, such as adding a granny flat in your backyard.
iBuild Granny Flats Sydney
From an investment point of view, Sydney granny flat investment is particularly attractive mainly for two reasons:
- Housing shortage and rising population is driving up rents rapidly in Sydney;
- The NSW government has introduced CDC approval process to fast track the granny flat approval – in as less as 10 days.
If want to create your cash cow to generate positive cash flow, iBuild can offer you a wide range of quality affordable products so that you can build your granny flat in Sydney, as well as other states around the nation. Through our business partners, we can also assist you with the end-to-end service such as getting planning permit, finance, and constructing the granny flat.