diff --git a/addon/ng2/blueprints/ng2/files/__path__/tsconfig.json b/addon/ng2/blueprints/ng2/files/__path__/tsconfig.json
index 37845baee1b4..fc08b73a705b 100644
--- a/addon/ng2/blueprints/ng2/files/__path__/tsconfig.json
+++ b/addon/ng2/blueprints/ng2/files/__path__/tsconfig.json
@@ -7,6 +7,7 @@
     "mapRoot": "./",
     "module": "es6",
     "moduleResolution": "node",
+    "outDir": "<%= relativeRootPath %>/dist/out-tsc",
     "sourceMap": true,
     "target": "es5"
   }
diff --git a/addon/ng2/blueprints/ng2/files/__path__/typings.d.ts b/addon/ng2/blueprints/ng2/files/__path__/typings.d.ts
index 99984cda19dc..c9d1541fdc09 100644
--- a/addon/ng2/blueprints/ng2/files/__path__/typings.d.ts
+++ b/addon/ng2/blueprints/ng2/files/__path__/typings.d.ts
@@ -2,7 +2,7 @@
 // https://github.com/typings/typings
 // https://www.typescriptlang.org/docs/handbook/writing-declaration-files.html
 
-/// <reference path="<%= refToTypings %>/typings/index.d.ts" />
+/// <reference path="<%= relativeRootPath %>/typings/index.d.ts" />
 <% if(!isMobile) { %>
 declare var System: any;
 <% if(!isMobile) { %>declare var module: { id: string };<% } %>
diff --git a/addon/ng2/blueprints/ng2/files/e2e/tsconfig.json b/addon/ng2/blueprints/ng2/files/e2e/tsconfig.json
index eb5d88ecd0bc..3c9a6d4169cd 100644
--- a/addon/ng2/blueprints/ng2/files/e2e/tsconfig.json
+++ b/addon/ng2/blueprints/ng2/files/e2e/tsconfig.json
@@ -6,6 +6,7 @@
     "experimentalDecorators": true,
     "module": "commonjs",
     "moduleResolution": "node",
+    "outDir": "../dist/out-tsc-e2e",
     "sourceMap": true,
     "target": "es5"
   }
diff --git a/addon/ng2/blueprints/ng2/index.js b/addon/ng2/blueprints/ng2/index.js
index 146ef7c50023..90588b23bcf5 100644
--- a/addon/ng2/blueprints/ng2/index.js
+++ b/addon/ng2/blueprints/ng2/index.js
@@ -24,7 +24,7 @@ module.exports = {
     this.version = require(path.resolve(__dirname, '..', '..', '..', '..', 'package.json')).version;
 
     // Join with / not path.sep as reference to typings require forward slashes.
-    const refToTypings = options.sourceDir.split(path.sep).map(() => '..').join('/');
+    const relativeRootPath = options.sourceDir.split(path.sep).map(() => '..').join('/');
     const fullAppName = stringUtils.dasherize(options.entity.name)
       .replace(/-(.)/g, (_, l) => ' ' + l.toUpperCase())
       .replace(/^./, (l) => l.toUpperCase());
@@ -37,7 +37,7 @@ module.exports = {
       sourceDir: options.sourceDir,
       prefix: options.prefix,
       styleExt: this.styleExt,
-      refToTypings: refToTypings,
+      relativeRootPath: relativeRootPath,
       isMobile: options.mobile
     };
   },