Increased rental incomes from granny flats can assist homeowners and investors alike in paying off their mortgage or increasing cash flow.
That’s why they have become so popular in recent years; these inexpensive investments can make all the difference in the long run!
What is a Granny Flat?
A granny flat is an Australian term for a second dwelling on a property, either attached to the main house or free standing. These small but self-contained dwellings have been gaining popularity, as they are easy and cost effective to construct. In fact, they can be built in 8-12 weeks, and are often cheaper than renovating the main house.
Most residential-zoned properties can include a granny flat, but checking with your local council is a must before you begin construction.
Benefits of Building a Granny Flat
A granny flat on your property can increase your income with land you already own. And demands are high for budget friendly rental accommodation, which is becoming harder to find in capital cities across the country.
In most capital cities you can expect about $150-$450 a week for your granny flat, depending on the size, age and location of the property. If you are thinking about constructing a one-bedroom granny flat, research the rental yield of one-bedroom units in your area – you can expect a similar rental return.
Granny flats are also suitable for investment properties, as they are a low cost way of increasing the property’s rental income. Not only can investors see an increase in weekly rental income, but also an increase in the long term value of a property.
If you are considering constructing a granny flat on your property and need to refinance your home loan, don’t hesitate to give us a call on 02 9068 6644 to chat about your options.