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uilding a home is an exciting journey, one that is filled with anticipation and planning. From selecting the right design to watching your property take shape, each stage of construction is an important step toward creating your dream space. At Builders Brisbane, we are committed to delivering quality construction in a timely manner. Here’s a detailed guide to the typical build times for the various types of structures we offer:
Granny Flats: Typically 3-4 Months: If you are looking for a small and quick housing solution, granny flats are a great option. They have a compact design and can be built in a short span of time. We take care of every step of the process, from planning to execution, to ensure that your tiny home is ready in 3-4 months.
Loswet Homes: Typically 5 Months: Lowset homes, or single-storey homes, are more complex to build than granny flats. They usually take about 5 months to finish, but this may vary depending on the size of the floor plan. Lowset homes are suitable for families who need more space and comfort.
Double-Storey Homes: Typically 7 Months:
Building a double-storey home requires more time than a single-storey one. These homes are large and luxurious, and they usually take about 7 months to complete. Some of the factors that increase the time frame are the use of steel beams, different types of cladding, multi-level roofs, and scaffolding that needs to be set up and removed.
Duplexes: Typically 7 Months: Duplexes are a type of housing that have two units attached by a common wall. They usually take about 7 months to construct and can offer some advantages over single-family homes. For example, duplexes can make efficient use of land and provide a source of rental income for the owners.
Extending Build Duration: Landscaping and Other Considerations
While we strive to meet the timelines mentioned above, there are factors that may extend the build duration by up to a month. Here's a look at some common considerations:
Landscaping: The aesthetic appeal of outdoor spaces is vital. Custom landscaping can add weeks to the construction process, depending on the complexity of the design.
Weather Conditions: Unpredictable weather can lead to delays. Rain, strong winds, or extreme temperatures might hinder the progress of construction. Living in Queensland, we have some amazing weather during the winter and large amounts of rain in Summer. Keep in mind the seasons when talking time frames.
Permit and Inspection Delays: There are various factors that can affect the duration of a construction project. One of them is the legal and regulatory aspect, which involves obtaining the necessary permits and passing the required inspections. These processes can sometimes cause delays or interruptions in the work, depending on the availability and efficiency of the authorities. At times, it is important to plan ahead and anticipate any potential issues that might arise from this aspect.
Customisation:If you choose to add or modify certain aspects of the construction, it might extend the timeline depending on the complexity of the changes.
At Builders Brisbane, based in Ormeau, South East Queensland, we take pride in our craftsmanship and commitment to timelines. We understand that your home is more than just a building; it's a personal space that reflects your taste and lifestyle. That’s why we work closely with you to ensure that every detail is attended to, even if it means spending a little extra time to get it just right.Should you have any questions or need further assistance, feel free to reach out to us. We are here to help you build the home of your dreams, or an amazing investment to catapult you to a brighter financial future.
This strategy delves into advanced investment tactics that move beyond traditional "buy and hold" approaches or sole reliance on capital growth, by actively creating value in your property. It emphasizes proactive methods to enhance a property's worth and income stream, rather than simply waiting for market appreciation.
Manufacturing Equity Through Additional Dwellings
A significant way to "manufacture equity" is by adding a secondary dwelling, commonly known as a granny flat, or a duplex to an existing property. This can substantially increase its value. A granny flat is defined as a self-contained living space that can be attached to or detached from the main house, and it is typically smaller and subordinate to the primary dwelling. It must contain essential facilities for daily living, such as food preparation areas, a bathroom, and clothes washing facilities. These structures can serve various purposes, including accommodating elderly relatives, providing a home office, or, crucially for investors, being rented out for additional income.
A pivotal change in Queensland regulations, effective September 26, 2022, removed previous usage restrictions on secondary dwellings, thereby allowing homeowners to rent out granny flats to anyone. Before this change, in many council areas outside of Logan City and Ipswich City, secondary dwellings typically had to be occupied by family members or be under the same lease as the main dwelling. This policy shift has significantly opened up new avenues for investors to generate cash flow.
In contrast, a dual occupancy consists of two fully contained homes on a single property that are unrestricted in size, unlike granny flats which have size limitations. When two units are attached by a common wall, it is specifically termed a duplex. Both dual occupancies and duplexes can make efficient use of land and provide a robust source of rental income.
A critical benefit for investors is the ability to strata title a dual occupancy or granny flat. This is because banks primarily value titles, not just the physical buildings on a property. By obtaining a separate title through strata titling, investors can dramatically increase their equity for extraction or enable separate sales of the dwellings in the future. For instance, one investor successfully strata titled their granny flat after zoning laws changed, significantly boosting their property's equity. Examples of successful dual-income structures include a double-storey home with separate tenants upstairs and downstairs, or two full homes on a single block, both capable of generating substantial weekly income, such as over $900 per week.
Leveraging Existing Property Equity
Rather than selling an existing property, which incurs exit fees and triggers capital gains tax, investors can leverage its equity through a drawdown to fund the construction of a granny flat. This strategy allows investors to utilize their current assets to finance new income-generating builds. One investor, after building initial equity from their first home, subsequently used equity from existing properties to fund granny flat constructions, aligning with a long-term plan to increase cash flow. This approach is seen as a way to "manufacture" success by having multiple avenues for property growth and financing.
Focusing on Cash Flow Positive Properties
A key strategy in this approach is to focus on cash flow positive properties, where the rental income not only covers all expenses (including interest, mortgage repayments, rates, water, maintenance, and management fees) but also generates a profit. This directly increases an investor's income and, importantly, enhances their borrowing capacity, acting as a "wealth multiplier" for continued investment. This is a strategic departure from a "negative gearing mentality," which traditionally prioritizes capital growth, as capital growth is not always guaranteed.
Granny flats, in particular, can achieve high rental yields, with some providing between 10% and 12.5% yield on the build price. A notable example mentioned is a granny flat built for $160,000-$170,000 pre-COVID, which now commands a market rent of around $450 per week, translating to a substantial 14.5% yield. Positively geared rentals can range in cost and income, with examples like a $380,000 property generating over $700 per week in lower socio-economic areas, or a $700,000 property generating over $900 per week in more upscale areas.
Buying with Granny Flat Potential and in Undervalued Areas
It is strategic to buy a house with granny flat potential – for example, a property where the main house is situated far to the back or front of the block – even if the granny flat build is planned for a few years later. This foresight allows for future equity growth and development. One investor specifically sought properties that could transition into investment properties by easily accommodating a dual living situation or granny flat, often looking for houses set far back or forward on the block.
Furthermore, it is advisable to consider undervalued areas as strategic starting points. These locations might carry a "bad reputation" for "silly reasons" (e.g., a past isolated incident like a shooting), but often possess strong underlying fundamentals such as proximity to good schools, major highways, and growth in nearby suburbs. Investing in such areas can lead to capital growth beyond the baseline. The investor's experience in Pacific Pines, which was considered "dodgy" after a shooting but had good fundamentals, exemplifies this strategy, as the property ultimately saw significant capital growth. The ability to see value that others miss, especially if you're newly moved to an area, can be a significant advantage.
Building a Strong Team
Surrounding yourself with a strong team is paramount for success in property investment. This team should include experienced professionals such as builders, mortgage brokers, and accountants who are actively involved in property investment and have "walked the walk" themselves. It is important to seek advice from people who are currently at the level of success you aspire to achieve, rather than those who simply give advice. Identifying "star performers" within organizations like councils and banks who are willing to support unconventional investment strategies can be highly beneficial, as these institutions are ultimately collections of individuals.
Networking and actively seeking knowledge from experts, even by offering to pay for their time (e.g., lunch), can help cultivate this essential team and provide valuable insights. The principle that research mitigates risk is crucial, as is the understanding that while extensive research is necessary, eventually one must take action and be prepared to solve problems as they arise.
About
Sean Wilson
As a third-generation designer and builder, I have building in my blood. I've been designing and building my whole life. Specialising in management and company building, we have built an amazing team in Builders Brisbane to bring your dreams into reality!
