How Much Passive Income Can a Granny Flat Earn?

Published: March 5, 2019, 8 p.m.

b'ARVE Error: Mode: lazyload not available (ARVE Pro not active?), switching to normal mode\\n\\n\\n\\n\\n\\n\\n\\n\\n{"@context":"http:\\\\/\\\\/schema.org\\\\/","@id":"https:\\\\/\\\\/onproperty.com.au\\\\/how-much-passive-income-can-a-granny-flat-earn\\\\/#arve-youtube-tabotffmmbe659a0b2c37c6d955645204","type":"VideoObject","embedURL":"https:\\\\/\\\\/www.youtube-nocookie.com\\\\/embed\\\\/tabotFFmMbE?feature=oembed&iv_load_policy=3&modestbranding=1&rel=0&autohide=1&playsinline=0&autoplay=0"}\\n\\n\\n\\n\\n\\n\\n\\n\\n\\nWe talk a lot about building and renting out a granny flat, but how much passive income do granny flat\'s actually spin off and how long would they take to pay themselves off completely? Get Access to Property Tools - https://propertytools.com.au/\\n\\n\\n\\n0:00 - Introduction\\n1:28 - The overview of the big numbers\\n3:05 - Looking at the rental yield and cash flow\\n5:39 - What if we did a principal and interest loan\\n7:33 - How long will it take for the granny flat to pay itself off?\\n10:33 - What if interest rates were 1% less?\\n12:20 - What if we paid an extra $500/month onto the loan?\\n\\n\\n\\nBook a Free Strategy Session - https://onproperty.com.au/session/\\n\\n\\n\\nRecommended Videos Granny Flat With a 12% Rental Yield - https://www.youtube.com/watch?v=z1A1j97r1ho\\n\\n\\n\\nTranscription:\\n\\n\\n\\nWe talk a lot about building and renting out a granny flat in the two properties to financial freedom strategy, but how much passive income can a granny flat actually produce? So how much positive cashflow does the granny flats spin off? And then also how long is it going to take to completely pay off this granny flat assuming that the granny fights just going to pay itself off. That\'s what we\'re going to look at in today\'s video. Hey, I\'m Ryan from on-property, helping you achieve financial freedom. And sometimes it\'s really fun to crunch the numbers and to see how adding a gray fat affects our cash flow and our passive income are positive cash flow. But also if we were to build a granny flat rented out, how quickly would that granny flat be able to pay itself off so that money can go into our pocket?\\n\\n\\n\\nSo we\'re going to jump on the computer and look through a bunch of figures today. I think it goes without saying that this is not to be considered financial advice will be looking at just a rough example and I\'m guessing I\'ve created a spreadsheet that can kind of predict the future with this, but obviously there\'s so many changes that you can\'t predict. Things don\'t always go according to plan. So this is not to be considered real life example. This is just for us to play with the numbers, get a rough idea of how things might play out if we were to invest in a granny flat. Okay, so generally speaking, um, I\'ve got this spreadsheet here, women talking about the two properties to financial freedom strategy that we\'re talking about purchasing a house for around $400,000 with rental income around four 20 per week and a granny flat purchase for around or build for around 120,000 renting for two 80 per week.\\n\\n\\n\\nIn this example, we just want to go ahead and look at the granny flat. So I\'m going to put the house price at zero and the rental income for the house at zero, that will isolate it. So we\'re just looking at the granny flat and I\'m also going to go across to property tools.com day you now this is a cashflow calculator. I created it myself years ago. You can get access to it as well for a small monthly fee if you want. And what you do with this calculator, I\'ll go ahead and reset it so you can see from the start, but basically we can put in the purchase price. So in this case it\'s the build price, which would be 120,000 we can put in the rental income, which is to 80 you can also adjust the interest rate. So interest rates might be 5% they might be 4% they might end up going up over time and be 7% and so as you can see the weekly cashflow before tax here adjust as you adjust these sort of things.\\n\\n\\n\\nMaybe we could rent it for 300 per week. Then that would increase our cashflow there as well.'