Do Granny Flats Add Value?
Granny flats are growing in popularity!
Nowadays you will look around your neighbourhood and have seen them popping up everywhere.
Granny flats were originally intended to provide a provide safe and nearby housing for grandparents and the elderly but now many home owners are now also looking at granny flats as a way of expanding their current living space and using them to generate some additional coin on the way.
Building a granny flat is not only a great way for providing affordable housing for your community, it is a great long-term strategy with rental granny flats going for anywhere between $250-$550 a week granny flat owners are able to earn a secondary income and pay down their mortgages quicker while claiming tax benefits on depreciation.
With the average cost to build a granny flat ranging from $70,000 to $200,000 and despite the benefits they offer do granny flats add value to your home?
Why should you consider building a granny flat?
Other than 'everybody is doing it' there are some strong arguments for forking out that amount of money to build a granny flat.
Relatively low investment
With a custom designed granny flat, you can choose the design of your granny flat, how many bedrooms, what inclusions, and work according to your budget, to achieve the best possible outcome.
Potential rental income
Depending on what type, size, and quality of granny flat you build, a rental return of up to 15 percent is quite achievable much stronger compared to most other types of properties.
Easy to rent
Granny flats can be popular with renters especially when you add value to them such as air-conditioning, privacy, and possibly an outdoor space. Simple inclusions like this will make your granny flat stand out and a more viable option for renters wanting a home over an apartment.
But do granny flats add value to your home?
There is a lot written and said about exactly how much value a granny flat can and will add to your home.
According to the 2019 CoreLogic/Archistar Granny Flat Report, having a granny flat could boost home values by 30% and add around 27% to rental income.
Additionally, any rental income from the granny flat can go towards a home loan that is a huge plus on its own.
At the very least, your home might be easier to sell with a granny flat granny flats open other possibilities; guest house, games room, home office, man-cave/she-cave and so on.
If you are thinking about building a granny flat, contact Binai Construction on 0404 919191.