Over the last few years, granny flats have become increasingly popular with savvy home owners and investors.
With interest rates sitting at record lows and vacancy rates slightly above 0% in most capital cities, it isn’t surprising to see an increasing number of savvy Australians calling out for cheaper, ideally located accommodation.
Enter granny flats.
Over the last few years, there has been a jump in the number of home owners and investors erecting granny flats in their backyards.
Savvy homeowners realise that granny flats are no longer just for grannies. In fact, they are a great way to build a tidy supplementary income.
Better yet, with so many granny flat styles and designs on the market, a granny flat no longer has to be a makeshift rumpus room attached to the house.
Today, they can be entire homes on the same block of land as the primary home.
These secondary homes then have the potential to generate the owner significant income.
Of course, if you are thinking about building a granny flat for investment purposes, there are some key things to consider first, including:
- Legal and financial requirements:
It is important for those considering erecting a granny flat on their property to first check the relevant requirements. Regulations regarding construction and occupancy vary from state to state and council to council, so it pays to do your due diligence and make sure you are working within the right parameters.
Some lenders will restrict the loan size for a property that is set to be built on land that already boasts another dwelling. That said, there are still plenty of financing options available, so make sure you speak to me if you are considering building and financing a granny flat.
Before erecting a granny flat in your backyard, it is important to know exactly how you plan to connect the storm water, sewer, water and electricity to the dwelling. Often connecting the various services to a granny flat is the most complicated and expensive part of the entire process, so make sure you know what you are getting yourself in for before leaping in feet first.