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Collapse Issue 399 - 08 Aug 2016Issue 399 - 08 Aug 2016
Collapse  NEWS NEWS
Peninsula becoming 'granny flat capital', says Chamber
Rail underpass re-opened
Carpark sale 'push for economic stimulus and growth'
Rotary members travel to New Guinea
Underpass closure shows need for project completion
New shared bike paths completed
Umina resident hopes to re-establish Rotaract
Marine Rescue finds boat hard aground
Brisbane Ave land sale report date remains unknown
Council maps show reserve value, says campaigner
Chamber supports community land sale
CEN calls on Council to follow correct process
PCYC manager addresses Rotary
Vietnam vets commemorate Battle of Long Tan
Community group supports street tree planting
Canoes donated to Sea Scouts
Council meeting frequency cut in half
Objections may trigger council consideration
Application to erect five townhouses on two lots
Application for three dwellings
Olympian dies at Peninsula Village
Community garden prepares for garden competition
Christmas-in-July attracts 100 diners
Nature playgroup for Peninsula parents
Fundraising night for eco-living festival
Scrabble club wants new members
Collapse  FORUM FORUM
Contributing to the Australian Ugliness
Money is tight because mega-rich dodge tax
We get the pineapple
Annoyed with the NBN
New councillors needed now
Turning by degrees
Let's do something about petrol pricing
Buyer beware: Development without infrastructure
Many might rue local democratic process
Collapse  HEALTH HEALTH
Private hospital recruits top psychiatrists
Students provide 'care packages' for children's ward
Hearing checks held during awareness week
Collapse  ARTS ARTS
Little Theatre launches latest production
Wine, cheese and art night a sell-out
Glee club will present 'enchanted evening'
Country Women hold variety show
New book released
Songwriters conference to return next year
Collapse  EDUCATION EDUCATION
Nominated for 'a sympathetic ear' and 'a little extra TLC'
Program deals with loss and change
Exchange student welcomed by Rotary
Pretty Beach plans 90th anniversary celebrations
Successful debate
Open day at Umina Beach
Olympic Games day held at Umina
Dancers perform
Aboriginal student of the year
Little aths talk given to students
Naidoc Day was a celebration
Olympic athletics carnival
Education Week open day
Academic success at Woy Woy South
Celebrations in full swing
String students practice for Opera House
Tree day celebrated in the garden
Collapse  SPORT SPORT
Ettalong Fours tournament attracts top national players
Lions under-17s head for the finals
Surf club awarded bronze status
Women's bowls club celebrates 80 years
Surf club chosen for Raising of the Flags
Rugby Union finals at Woy Woy
Kingfisher Carnival attracts 32 teams
Netball club holds movie fundraiser
Ken Young receives life membership
Ninth annual charity day at men's bowling club
Umina bowls triples final
Umina places first in State pool rescue

Peninsula becoming 'granny flat capital', says Chamber

The Peninsula is becoming the granny flat capital of the Central Coast, according to Peninsula Chamber of Commerce president Mr Matthew Wales.

At the same time, during the past two years, it has experienced a medium density development slowdown, he said.

Mr Wales said onerous medium-density development control plans were the reason for the trend.

He said the evidence was that council had reported no increase in Section 94 contributions during that period.

"Most unit developments on the Peninsula are from older approvals before the Development Control Plans were changed for medium density requirements," Mr Wales said.

He said he believed investors were finding it more lucrative to build granny flats than to build units for sale.

According to Mr Wales, granny flats on the Peninsula were generating investment returns of between five and six per cent.

In most locations a home on the Peninsula with a granny flat would achieve a sale price of around $800,000, Mr Wales said.

High demand for rental properties made it possible to purchase a granny flat, have it constructed and tenanted within 10 weeks.

The investment outlay for an attractive granny flat would be between $120,000 and $140,000 and weekly rentals can vary from $300 to $450 per week.

Weekly rental income on a Peninsula investment property with a granny flat in the back garden could be as high as $800 - a much better return than currently on offer from term deposits or shares.

The popularity of granny flats did have its down side, according to Mr Wales.

It was possible to construct a granny plan without lodging a development application with council under State Environmental Planning Policy (Affordable Rental Housing) 2009.

By providing a granny flat that would be deemed to be affordable housing, all that was required was a complying development certificate, which meant no council involvement.

The need for a development application could be triggered if the person building the granny flat needed to remove a tree or put in drainage, Mr Wales said.

The granny flat tenants put pressure on local roads, town centres, infrastructure and amenities but the development "did not put a single cent into council coffers", he said.

A granny flat was not rated separately, the council did not earn any Section 94 contributions from its development and the developer did not have to provide any parking, he said.

As a snapshot, applications for 20 granny flats on the Peninsula were determined during July 2016.

That's around 240 additional dwellings on the Peninsula per year that did not pay rates.

If council was to introduce a Section 94 contribution of $5000 per granny flat, they would earn $1.2 million per year to reinvest in Peninsula infrastructure.





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