The idea of a granny flat has evolved to much more than just somewhere for granny to live. There are multiple uses for a granny flat; families, investors, travelling nomads or even a business owner. The complying development certificate makes it much easier to build a granny flat on your property, as long as you meet the requirements! Make sure you read reason no. 3!
Below are our top seven reasons why so many people are choosing to build a granny flat!
- Return on investment of 10-20%
If you are an investor looking to maximise the value of your current property, a granny flat is a great solution with yields that can be achieved of up to 20%!
- Tax Depreciation Benefits
Building a granny flat for an investment is an easy way to create additional income, without having to buy a whole new property. Because granny flats are a new building the cost of construction can be used as a tax deduction if the granny flat is income producing. Research conducting by BMT Quantity Surveyors has shown that “the average first year depreciation deduction for a granny flat is %5,288 accumulating to $23,713 in deductions over the first 5 years”.
- No council approval needed
In 2009, the NSW Government released the Affordable Housing State Environment Planning Policy (SEPP) which permits all residential home-owners with a property larger then 450m2 to build a granny flat on their property, subject to meeting a set list of requirements (click here for details) If your property meets the requirements then your Complying Development approval can be processed much quicker than a Development Application.
- Home Office
If you work from home, having a workspace that is separate from the main house is a luxury! Thankfully with a granny flat it makes this luxury feasible with this low cost solution.
- Senior Family Member Accommodation (traditional use)
We mentioned earlier that the traditional use of a granny flat was for a family member who needed to live close to home. This is still a great way to utilise a granny flat and also popular. It means your loved ones are close to home but can still maintain their independence.
- Home base for grey nomads
Are you somebody who likes to travel but you are not quite ready to give up your family home? Building a granny flat is an excellent solution. You can rent out the family home as a source of income and use the granny flat as a home.
- Utilising a large block
Have you got a large block of land that you find yourself mowing every weekend? A great way to utilise that space is with a granny flat! It is a low cost investment with high yields and another source of income.
If one of these reasons have made you think a granny flat might be a great solution for you, fill in the form below or give our head office a call on 4947 2800 to speak with one of our granny flat specialists!