For investors and landlords looking to cash in on top rental returns and easier approvals on secondary homes, Granny Flats are a smart property investment.
In 2009, the Affordable Rental Housing State Environmental Planning Policy (ARHSEPP) was introduced by the state government. This policy permits Granny Flats to be approved faster, getting families into an affordable home quicker.
Australia’s population is growing, especially in Sydney. With this growth, the need for more affordable housing choices is a must. The Granny Flat is a strong contender when it comes to property investment and good rental returns.
The humble Granny Flat, originally designed to house grandparents who valued their privacy, now accommodates singles, couples and families who prefer affordable housing.
It is also often used as extra accommodation for extended family members. However, as rental prices continue to rise, Granny Flats have paved a way to guarantee a fixed weekly income.
According to Barjinder Pal of LJ Hooker Seven Hills, Granny Flats are in demand.
Pal says, “We have leased three Granny Flats in the last week and they go for around $360-$380 per week.”
“One common question when we sell a home is, will we be able to build a Granny Flat in the backyard?”
Pal adds, “People want to live in a Granny Flat because they are brand new.”
Neighbours, however, are concerned with privacy and overcrowding. This is why choosing the location of your Granny Flat is critical.
A well-planned Granny Flat proposal should consider neighbouring privacy and re-sale value. The distance between the main existing home and the proposed Granny Flat should be maximised to maintain privacy and enhance the owner and tenant’s lifestyle.
For property investors interested in constructing a Granny Flat in the backyard of an existing home, consider the following:
- Side access
- Ample space in rear yard (lot sizes should be a minimum of 450m2)
- Future tenant privacy and neighbouring privacy
- The right design
- Car parking
- Easements that may restrict approval
- Environmental protection envelopes that may affect approval
Barry Armstrong of All Granny Flats in Port Macquarie is a builder with nearly 50 years experience. If are considering a Granny Flat, then chat with Barry. It is advisable to run ideas past a builder with experience in constructing Granny Flats. They will assist you with correct property selection and other advice specific to Granny Flats that is needed before going through with design or construction of your Granny Flat.
Call Barry today on 0408 652 261.