After a granny flat investment property?
Housing prices in Australia have only been rising in the past decade and the foreseeable future doesn’t promise otherwise. Finding an affordable, low-maintenance property either for renting our buying has already become a huge issue in the capital cities. When this is the case, the idea of renting a granny flat sounds appealing to many people. If you are after an investment, why not invest in a granny flat?
What is a granny flat?
A granny flat is considered a secondary dwelling and it is built on the same land that your house is built, hence the word secondary. A granny flat has its own entrance as it is not a part of the main dwelling. They also have rooms, kitchens, bathrooms, living rooms and etc. There are certain regulations when it comes to granny flats, such as it can be an extension to your garage but needs to have a separate entrance (not from the garage).
Due to the housing situation in the country, many states and territories have made it easier to build granny flats. Renting them and earning an extra income has also been allowed by many states and territories.
Here is what you need to consider when you are investing in a granny flat property:
- Before buying or building a granny flat, you have to make sure that the state or territory you are in approves your project. Regulations must be met in order to own a lawful granny flat.
- The property that the granny flat will be built on must be a residential area.
- 450 square meters is the minimum size for the property
- Only 1 granny flat is allowed on the property
- The owner has to be the same person who owns the main dwelling
There many advantages of investing in a granny flat property and having a granny built. Here is why we believe this is the case:
- It is affordable. Whether you are buying or building, you won’t have to stretch your budget much.
- Extra income from rental: A proper granny flat can provide you with a steady income if you lease it.
- A property with a granny flat on it will only rise in value.
- Granny flats are a practical solution when your friends or relatives come over and need extra room for them.
