Granny flat can provide homeowners a low cost, high return investment option.
Granny flat is small, self-contained home in your backyard. It is separate to your main house, and it comes with all amenities like bedroom, bathroom, kitchen, laundry and living room of its own.
Characteristically granny flats were for elderly. However, investors can build granny flats for short term rentals and to increase their property’s value.
Granny flats are a popular option for investors for a few reasons – cash flow medium. Granny flats is a choice by a lot of people – from students looking for an accommodation to young singles and of course retirees. For investors it can be a cheaper option than buying an investment property. It also does not impact your day-to-day life like home renos can. Also, granny flat can increase your resale value as the prospect buyer can benefit from rental income or an extra bedroom.
Like any other investment, it is suggested that you do your research. Be clear with your investment strategy. Do the numbers. Consider how granny flat investment will be taxed. Find out what granny flat regulations are in the relevant state.
While the granny flat investment cost is typically lower than buying an investment property, you should be clear of what type of granny flat you would like to build. A typical cost range is $80,000 to $125,000. Be smart with granny flat investment. If it blends in with your main house, it can increase the value of your property considerably.
You will also need to apply for council approval with the relevant council. Find out what is the cost of such application. You will also need planning permission and building and pest inspections.
Dealing with tenants may not be easy and time consuming. So please consider that as well if you are thinking of granny flat investment.
Like with all investments, do the right research, and consider all pros and cons associated with such granny flat investment.