Having ample unused space in the backyard is pretty common in suburban homes. Most homeowners utilize it by building different backyard embellishments to create a gathering space for friends and family. While that’s an effective way of making use of your backyard, it doesn’t offer any financial benefits. But building a granny flat does that too. Aside from being an excellent way of utilizing your backyard space, a granny flat also earns you a substantial amount of money.
Who wouldn’t like to pocket some extra bucks just by utilizing the unused space on their property? Probably nobody! And that is precisely why granny flats have become increasingly popular over the years. They offer homeowners an excellent revenue generating opportunity without having to make a hefty investment.
More and more people all over Australia are building granny flats in their homes to earn additional income and add value to their property.
Owning a granny flat gives you substantial depreciation entitlements on your depreciation schedule, so you get to claim more items against your taxable income, which means you make more money.
Investing in a granny flat is significantly cheaper than buying or building a separate property. Typically, the construction of a granny flat costs about $125,000, which doesn’t even come close to the amount that you have to pay when building or buying a standalone three-bedroom property. So, you get to enter the investment business without needing to take out a heft, difficult to pay loan. And the rental income that you’ll get in turn will help you reimburse the investment cost in no time.
A granny flat is an excellent source of income. Since the rent of a granny apartment isn’t as high as that of a regular apartment, the chances are that you will get tenants soon after the project is completed. Also, the population in metropolitan cities such as Sydney and Melbourne is increasing day by day, which means more people will need affordable accommodation options. And a granny flat is one of the cheapest housing options for anyone. Therefore, owning a granny flat is a lucrative investment.
Increased Property Value
Whether you rent out your granny flat or choose to offer it to a friend for free, having a granny apartment will add to your property’s value substantially. Having extra rooms for occupancy is always considered a major plus point during property evaluation. So, even if you don’t reap the financial benefits of building a granny house right away, you could do that at the time of property disposal.
Another advantage of owning a granny flat is having suitable accommodation for your parents or young children. It might not bring you money, it will, however, make you happy and most likely give you peace of mind. So what are you waiting for? Jump on the granny-flat-investment bandwagon now.