Adam

0415 057 525

Paul

0451 957 860

Investors

The most important things to know about investing in a granny flat

While granny flats are typically seen as the domain of teenagers or elderly relatives, they can also make highly-successful investment properties.

The humble granny flat is traditionally seen as a way to add more space to your home. Maybe you’ve got a moody teenager who wants more space (while still enjoying the perks of living at home) or maybe your elderly mum or dad is looking for somewhere to live that’s close to the grandkids.

Granny flats can also be used as an investment property to generate rental income for you and your family. They’re relatively cheap to buy or build, easy to maintain and can provide a steady source of income. However, buying or building a granny flat as an investment property isn’t without risks, so read on to find out more about the benefits and drawbacks of investing in a granny flat.

Buying or Building a 
Granny Flat

Granny flats are becoming increasingly popular and the modern, efficient, architecturally designed granny flats from G & S Building and Construction are a great, affordable option for investors.

boostat rules and regulations need to be considered?

Australia’s housing affordability issues have meant measures have been introduced in some areas to make building granny flats an easier process.

Granny flats require Council approval, must meet zoning law requirements and must be constructed to meet all necessary permits and building codes.

Relatives can occupy your granny flat, but if you intend to rent out a granny flat, it’s important to check your local laws as rules can vary between Councils. The allowed total square metre size of the granny flat also needs to be verified with your local Council.

It is a requirement for granny flats to have a car parking space as well as a parking space for the main house. The granny flat should also have an entrance separate to the main house to allow for privacy for occupants of the main dwelling and the granny flat.

As a general rule, a granny flat must also be built on a residentially zoned property which is a minimum of 450 square metres, must be owned by the person who owns the primary dwelling, and there must be only one granny flat on the property.

Adam and Paul at G & S Building and Construction can assist with any questions regarding rules and regulations for granny flats.


How much does it cost to add a granny flat?

Granny flats are making a comeback, and at G & S Building and Construction you can build a new, architecturally designed 2-bedroom granny flat from as little as $139,999, including all Council approvals. If you’re a potential investor, you need to look no further than your own back yard if you’re considering building a granny flat for rental purposes.

There are specific laws for renting out granny flats, depending on your location, so ensure you speak to the team at G & S Building and Construction with any questions you may have.


Will a granny flat add value to my property?

Granny flats are making a comeback, and at G & S Building and Construction you can build a new, architecturally designed 2-bedroom granny flat from as little as $139,999, including all Council approvals. If you’re a potential investor, you need to look no further than your own back yard if you’re considering building a granny flat for rental purposes.

There are specific laws for renting out granny flats, depending on your location, so ensure you speak to the team at G & S Building and Construction with any questions you may have.


Will Banks Lend on Granny Flats?

Yes. Every lender is different, but they are generally happy with the added value of a granny flat on a property. They will only lend on the granny flat value as long as it fixed permanently to the site – like ours are. You would usually want to have at least 10% Equity in the current property and if the main house is an investment, then the income from the granny flat can really boost your borrowing capacity.


The Benefits of Granny flat investment properties

Investing in a granny flat increases the yield from the property and increased yields usually translate into a stronger capital gain.

  • As a rental investment, your granny flat could provide up to a few hundred dollars a week of rental income, depending on location, size and features.
  • As long as your granny flat is compliant with laws and regulations, it is likely to add value to your property.
  • Building a granny flat is an affordable investment option.
  • A granny flat offers a practical accommodation option as a rental or for guests or relatives for either temporary or permanent accommodation.