As a homeowner, you’re likely on the lookout for ways to add value to your property at one point or another. One trend that seems to be gaining popularity across the country is the building of granny flats.
Granny flats can add value in a number of ways: it can provide owners with a rental income if they choose to put tenants in – or two rental incomes if the primary residence is an investment property – and it can maximise the sale price when it comes time to put the property on the market.
The first step in determining if a granny flat is a viable option for your property is to look at the space you have available. A block typically has to be at least 450 square metres and residentially zoned.
There are varying prices for granny flats but on average one will usually cost around $100,000 to build. Obviously the bigger you go, the more expensive it becomes. In most cases, it will take between ten days and two weeks to construct (after applications and approvals have been finalised).
As will all decisions, it’s important to do your homework because each state has different regulations.
Researching factors such as whether you’re able to rent out the granny flat, and if so, how much rent you’ll realistically achieve means that you can do the numbers to see if it’s the right option. Do you live in the primary residence? If so, think about things such as your privacy.
If you decide a granny flat is right for your property, consulting with your local council early in the process is critical. As mentioned, different areas have different rules and by working with your council, you’ll be sure you’re following the right application and construction procedure.
Story by Julian Packshaw of Loan Market. Original can be viewed here.