You’ve come to the right place! Take all the guesswork out of building a Granny Flat and save yourself hours of online research.
Families across Australia are increasingly looking at a supplementary dwelling or Granny Flat, to create the additional housing space they need.
Lets look at some of the problems & solutions.
- Escalation of housing costs makes it difficult for families to have the space they need.
With rent and home prices on the rise, it’s difficult for young adults to get a foothold in the housing market and for older adults to realise their retirement dreams.
- A growing trend for both parents to work increases the financial and social value of having grandparents nearby to look after children, particularly after school before parents get back from work.
- For many families, it’s important for Grandparents to live close by without being in the same home.
Granny Flats are great for families
They provide a close yet independent living arrangement for a loved one, or a great investment to generate income from the existing family property.
The system is in your favour
Building a Granny Flat is made easy with State Government regulations that avoid the red tape associated with traditional building consent.
Want to find out more?
Download our complete Guide to building a Granny Flat or contact us for more information.
The States of NSW, WA, NT, ACT and TAS all have systems in place for hassle-free approvals and fast-tracked building for a Granny Flat.
Provided a few criteria are met, compliance is a simple process, without the expense or time-consuming council approvals often associated with conventional building projects.
- Standard Block Size 450m2 – 900m2
- Minimum Lot width of 12m
- The combination of the primary dwelling & secondary dwelling must not be over 50% of the total block size
- A rear boundary set back of 3m with a minimum of 900mm space from the side of the block boundary.
Other Site Considerations
- Site drainage must comply with your council storm-water policies.
- If trees are on the proposed site, they may require permits to be removed. Dwellings will generally be set back by 3m from protected trees.
- If a Granny Flat wall is within 1.8m of an existing dwelling, the wall must be fire rated.
- Heritage, Fire and Flood considerations.
In addition to the above, your council may allow you to separate the mailing address and arrange for individual utility bills.
A Granny Flat does not permit the actual subdivision of your property – unless it’s already allowed under a local planning scheme.
To find out more, contact us today to book a free onsite inspection & consultation.
The current government legislation that now allows for a Granny Flat to be constructed on a residential property is possibly one of the greatest investment opportunities that existing property owners may see in their lifetime.
Not all Granny Flats are built to last – property commentators warn that a poorly considered and poor-quality Granny Flat may, in time, detract from the value of a family home. By contrast, a well-built Granny Flat has potential to increase the value of the site while providing a good rental investment.
For many, a rental income of more than $25,000p.a. is achievable.
- As an example, a Granny Flat costing around $130,000 to build typically generates an annual rental yield of more than 15% in Sydney or Melbourne, assuming a tenant pays the going market rate.
- That’s extremely favourable when compared to typical rental yields of less than 4% in both Sydney and Melbourne cities.
Average depreciation deductions for a Granny Flat – which includes proportions of utility bills, land rates and borrowing costs can also be claimed against income to reduce tax.
- Shared areas between the granny flat and owner-occupied property, such as patios, pools and barbecues, can also be deducted depending upon usage.
- Typical deductions are about $6,000 in the first year, rising to a total of more than $25,000 over five years.
Investors considering ways to shore up cash flow and profit from the current market conditions, without breaking the bank, will find it hard to ignore a Granny Flat as a cost-effective rental cash flow.
- Most states, including NSW, allow Granny flats to be rented.
- Having a rented Granny Flat alongside the principal residence allows you to keep an eye on tenants and often allows owners to self-manage the tenancy to further boost profitability.
- Information about eligibility and restrictions is available online from State planning and environment departments.
Contact us today to find out more or to speak to one of our friendly consultants who can discuss your project.