Building a granny flat can help generate additional living space and income, as well add value to your property.
Granny flats are popping up in backyards across the country as home owners and investors begin to take note of their money making potential.
Do granny flats add extra value to your property?
Building a granny flat can help generate additional living space and income, as well as having the potential to add value to your property.
Granny flats are popping up in backyards across the country as home owners and investors begin to take notice of their money making potential. They can be a fantastic way to generate additional cash flow through rental income as well as increase your property’s value if and when you decide to sell.
Granny flats are also proving to be a more economical way for people to look after their elderly parents or as accommodation for teenagers keen to fly the coup.
Whether your granny flat or bungalow is for elderly parents or children struggling with rising rent, property prices and the need for space, granny flats are an affordable way to expand your home’s living space and accommodate more family members.
If you don't already have a bungalow in the backyard of your property and are thinking of building one for investment purposes there are a few things you should consider before taking the plunge.
If you’re building a granny flat as an investment, you should check what your entitlements will be in relation to the cost of construction. It’s also important to check what capital gains tax may apply when you sell your property – if you’re receiving rent from the flat or bungalow this part of your property may well be subject to capital gains tax.
Regardless of this, granny flats can make a lot of financial sense with renters or in housing extended family or elderly parents. The design possibilities are endless; ranging from open plan living to stand alone building with their own plumping, kitchens and bathrooms.
Like all buildings granny flats must meet planning controls, including building height and floor space ratios. Be sure to check all the relevant requirements before you embark on your project. Once construction is finished, the fittings are in and the walls have been painted, it’s time to start putting your investment to work!
June 2011
