Sydney’s population is growing fast, and affordable accommodation has become a growing concern. The NSW government has made it straightforward for homeowners to build granny flats on any suitable property to generate more housing quickly.
The fast approval rates have been keeping granny flat builder, Sydney companies like us busy. Unlike other states, you can also rent out granny flats, Sydney properties to non-dependent persons, which has served to increase their appeal.
The ability to use a granny flat as a source of income means they could be an excellent real estate investment without the expense of buying a full investment property.
So, let’s have a look at the benefits of using granny flats for diversifying your portfolio.
1. Sydney granny flats provide extra rental income
A granny flat can be erected in your backyard or an investment property to create another income source.
2. Tax advantages
A rented granny flat gives you access to more claimables on your tax return via your depreciation schedule.
3. Increased Sydney property value
A property with a granny flat can be marketed as a five-room property rather than a three-bedroom property, and you may see a modest appreciation in value. In general, though, granny flats will add less value than the cost of construction because they are separate structures.
4. Provide teenage children with their own space
Many families build granny flats to give their teenage children more space and independence. The granny flat adds extra space for a growing family, and when the children leave the nest, it can be used as a guesthouse during holidays, office space for working from home, or for elderly relatives needing care.
5. Diversify your investment portfolio
If you put a granny flat on investment property, you will still have some income coming in while the investment property is vacant, and vice versa.
Granny flats may be a source of extra living space or a way to generate income, but they won’t suit every family or property.
Not sure where to start?
If you have considered your options, and believe a granny flat would suit your circumstances, then it’s time to call a granny flat, builder Sydney expert. At 2N2 Constructions, we provide unbiased professional advice, and you can take advantage of decades of building experience.