Granny flats have come a long way from being simple garage conversions frowned upon by the law. With Australia’s different changes in rental law back in 2009, the idea of a separate structure outside your main home has become a major hit. Experts even see a granny flat revolution in today’s market given its rising popularity.
For many, though, the question still remains: is this worth investing in? Let’s take a look at two main functions this addition serves.
The main purpose of a granny flat, of course, is to extend the space in your property. Sure, a two-storey three-bedroom unit would be great, but there are times when you need an extra structure for all the space you need. This is great when you frequently have visitors or have elderly in-laws or relatives staying with you.
Cash flow boost
ClassicGrannyFlatsWA.com.au says the prices of granny flats are more than worth their value when you take into account its effect on your cash flow.
First of all, we all know that extra space in a home equates to better property value. Ergo, constructing the granny flat alone already gives you the advantage of improving your cash flow come the time you want to sell your home.
Beyond this, granny flats also present an opportunity for homeowners and property investors to maximise the earning capacity of a certain lot. When you own the home, you can rent out the granny flat to someone else for a passive income stream. From the perspective of an investor, you can rent out the main unit and the granny flat to different tenants for more profit.
In conclusion, yes, granny flats are worth building in almost any property. In areas like Western Australia where you can rent out this structure, it becomes an indispensable asset in your backyard. When you know how to leverage this home addition properly, you can earn extra income and improve your property’s overall value at the same time.