Getting a granny flat can be an excellent decision to make for your household. Not only can it be a great way to make the most out of the space of your property (without doing a costly renovation or extension), it can also make good financial sense to get a granny flat – but it all depends on a number of factors. So today we walk you through the ins and outs of how much value a granny flat is going to add to your property – and ultimately end up in your back pocket.
Will you be renting out your granny flat?
Those who are planning to rent out their granny flat, either to friends or relatives, with long-term tenants or AirBnbing are going to see a much bigger return on their granny flat, so long as they’re able to rent it out as desired. You should also be careful with the rules surrounding renting out your granny flat and short-term stays. The laws differ from state to state and even from local area to local area. For those looking to make money from renting out a granny flat, you need to do your research first to ensure that you are staying on the right side of the law.
What suburb do you live in?
The suburb that you live in may dictate how much a granny flat will add to the value of your home. For instance, if your suburb is full of 4 bedroom properties and you have a 3 bedroom plus a granny flat, then it may not add so much as if it was in a suburb with more compact options. You will need to check with your local council about the rules for erecting a granny flat as they can often differ by region.
The macro perspective
Regarding value added to a property, according to the principal of RPG Valuers, it can add 20-30% on top of what it cost to get the granny flat to the value of your property (via Domain). While you might consider this to be a relatively modest amount, it doesn’t take into account the usefulness of the granny flat itself while you’re living on the property. It’s cheaper to erect than building an extension on your home, if you’re using it as an office it’s far less expensive than renting office space, and if you’re housing relatives it’s a lot more inexpensive than say, college accommodation or retirement village accommodation.
Our Great Value Granny Flats are just that – excellent value. With a reduced cost, you’re able to have your very own granny flat for a fraction of the cost of a custom build. Connect with us for more info!