Attached granny flat - ROI and approvals?

I am in planning stage of building an attached studio granny flat. I’ve discussed with local agents potential yields of an attached granny flat vs detached granny.

Based on my figures it would be more logical from a return point of view to go the attached route. To give you an idea, looking at around 110k after section 94 contributions for a 60m2 2 bedroom granny or 40-55k for an attached 30m2 studio. Rental returns is $300-330 per week for studio vs $370-400 per week for granny.

The reason for this thread is, I’ve discussed with a duty planner my thoughts and showed them plans and they were satisfied. They said I can go down DA or CDC route. From what I am ready CDC would be ideal from approval and cost point.

From my understanding the procedure would be:

1. Get drawings
2. Fill out CDC application with plans.
3. Once approval is given, start organising trades and commence work.
4. Once project is complete, organise private certifier to come and inspect.
5. Get occupation certificate and can put on market.

Am I misunderstanding anything there?

Yes I realise I will need to fire separate with 60/60/60 rating.

Do some strong research about what nearby rentals will achieve. I would think the 2 bedroom granny would provide a better ROI but it depends very heavily on your area. Uni students....young professionals......single parents....depends totally on your area.

Your processes are pretty much right, although you'll need the certifier from the start as they'll need to give approval before cosntruction begins and then do inspections as work progresses. If you can get away with CDC then that's great, otherwise council will give PLANNING approval and you'll need a certifier for BUILDING approval anyway.

This link is pretty handy although you have to read it backwards because it's supposed to be printed:

http://bpb.nsw.gov.au/sites/default/files/public/Finalbuildingappbroch.pdf

1. Should read "Get AEC sketch Data, Proofs & Costs"
$50K for what ... imo You aren't even close.?
You need to link the Build to Internet data, costs,etc and check it at different stages
1. What's out there
2. Prelim sketch
3. Detailed Plans /Model
Aim For 5% Deviation between Stages 1-3 goodluck