While the concept of a granny flatis not necessarily new, the popularity and demand for them are on the increase. In this weeks knowledge series, we begin to explore why
While legislation varies from council to council, there is a general consensus that for large lots with the underutilized land, adding a dwelling to ease rental pressure is a positive step. This usually refers to dwellings separate from the main dwelling, that can be leased to singles or couples struggling to find housing in high demand areas. As mentioned, the legislation does vary from council to council, but for fast tracked approvals on such dwellings, it is expected that these units should have a footprint of under 80sqm and comply with all relevant codes.
2. Financial Incentives
In a recent case we handled, a client had a 1200sqm lot with a 400(approx) sqm traditional home, but added a 31sqm luxury studio dwelling and rented it for 190 a week on a 2-year lease. Considering a total build and install cost of $56,000. This investment yields close to 6% and is stable. Additionally, the unit can be moved and resold if required. A comparative investment of $56,000 in a term deposit would not even be half of this yield and leaves the owner with no physical asset that can be resold or refitted for alternative use.
3. Lifestyle Incentives
Granny flats should never be boxed into being solely granny flats. We have had clients approach us for the following and more:
-Temporary accommodation while renovations are being made to the main dwelling.
With Australia having some of largest residential lots in the world, we see the growth of this market to continue strongly, especially as the housing affordability debate continues to roar. Feel free to contact us to discuss a cheap, fast and value adding ancillary structure to your residential site.