Are granny flats worth it?

Granny Flats Add Value

Did you know that more than half a million property owners across Australia could build a granny flat if they wanted to? Even with reports from official property researcher CoreLogic supporting this information, we understand that most people would still like some specific questions addressed. Probably the first question on that list is: do granny flats add value to your home?

In order to provide you with an informed response to this question, this article will explore the benefits of granny flat designs. This will cover the various structure types that are available, such as steel framed granny flats.

Let’s examine these aspects and a few related preliminary issues, as follows. Remember to keep reading, as we'll conclude by providing some top tips on adding a granny flat (a useful resource to keep at hand).

Benefits of a Granny Flat

Now let's get the conversation going: what are the advantages of a granny flat? From the outset, the body of data collected from Australian real estate industry research gives us some very positive news. Studies show that a granny flat could boost home values by 30 percent and add around 27 percent to rental income. This indicates that adding a granny flat can raise the value of a $500,000 home by roughly $160,000!

Furthermore, the government and policy-makers overwhelmingly view the construction of granny flats as a feasible way to increase the supply of housing overall. This is owing to the fact that they are generally inexpensive and simple to assemble (granny flat kits are generally the best option). Additionally, the benefits become even more evident when you take into account the hassle and expense typically associated with building a new home or even just moving.

Granny flats are, of course, built on lots that already exist, which increases the likelihood that these structures will lessen Australia’s housing shortage and pressures related to real estate costs. They don’t use up any extra land, yet they can accommodate extra occupants. It’s undoubtedly a win-win scenario.

Local councils all over Australia have relaxed regulations in relation to building granny flats, so people who want to build a granny flat no longer need to get town planning approval. As a result, these buildings present an immediate opportunity to generate more income and more space. They are even the potential answer to that looming and all-important question: how to solve the housing crisis in Australia.

Keep in mind that optimising the financial benefits and security of incorporating granny flats into a property requires an appreciation for and adherence to granny flat classifications, as well as several other factors.

Let’s take a look at exactly what this means for you in the next section of this article, or delve further into more rules around granny flats by clicking the link below.👇

What Are Granny Flats?

In a general sense, a granny flat will refer to a small, self-contained home, that is:

Situated on an existing property that’s separate from the main house;
Contains one or two bedrooms;
Constructed with, on average, 40 to 60 sqm of living space;
Built above a garage or in the space outside of the main house, such as the backyard.

What is commonly known as a granny flat may otherwise be referred to as a secondary dwelling, secondary suites, self-contained dwelling, or an accessory dwelling unit. Sometimes you may even come across the terms in-law apartments and garden suites.

Whatever the name of the secondary structure that accompanies a granny flat, the most important part of categorisation would be a technical breakdown of factors like the number of rooms it contains. You should also consider its relationship to the main structure.

Industry reports from CoreLogic specify that an extra two bedrooms and an extra bathroom added to a property constitute what is known as a standard granny flat. It is specifically this type of structure that can be expected to add about 32% to the value of an existing home.

Therefore, it follows that adding a two-bedroom, one-bathroom granny flat to your property is the preferred choice in order to achieve a high-level return on investment (ROI). This can be especially useful to keep in mind if you’re tossing up between 1 bedroom granny flat designs and 2 bedroom granny flat designs, although both have their valid place and purpose.

Remember, there are other aspects to consider, such as the difference in quality in the build and make of granny flat designs. We explore this topic in some more depth below.

You’ll be pleased to know the specific features and benefits of granny flats do not end there, so you can learn more via the link below.👇

What is the purpose of adding a granny flat?

Granny flats are a great option for homeowners who are thinking about expanding their living space. They offer additional space, a potential source of income through leasing, and the ability to increase the value of a property for future generations to buy or sell.

Granny Flat Designs

There are many granny flat designs, from your more traditional granny flat plans through to granny flat kits (what some people might even look at as tiny house designs). As you might imagine, flexibility and versatility in design are key advantages when building a granny flat, as are the strength and sustainability of materials.

For this reason, more and more people are opting for steel framed granny flats, especially when selecting from granny flat kits. By way of a kit, this affords all the strength (and climate suitability) of steel framing with the ease of being able to add a granny flat to their existing home.

A quality granny flat kit home provider will be able to help you design and use materials to match your existing main dwelling in the best looking and most efficient way possible. What is particularly helpful is when you find those companies that will give you the ability to design what you like, or are able to lend their insight to give you optimal results.

Smart design will allow for up to a three bedroom comfortable living home. Look for granny flat kit home companies that can future proof the design for simple living, such as wheelchair access, ramping and thermal comfort.

In this way, you’ll be covered as your family inevitably ages. You can also insure suitability across-the-board for investment purposes. This means that you will be far more likely to be able to demand premium rental returns and/or attract a higher resell value.

However, potential uses for granny flats do not end there:

Many people believe that the granny flat is the best option for caring for elderly relatives. It allows them to feel independent but is still close enough to provide support when needed. However, a granny flat can be a flexible option for anyone at any point in life.
Whether it’s for extended family, extra guests, that overgrown teenager, a place to work at home in peace-and-quiet, or, naturally, to provide more accessible and budget-friendly accommodations for seniors, you never know just how useful your granny flat might prove to be!
They are easily habitable or can be rented out, allowing the property’s main structure to be leased for often increased rental returns. Because of this, granny flats are viewed by many as an excellent investment and ‘fail safe’, adding a much-needed extra layer of security in an often complex and unpredictable world.

Top Tips In Adding A Granny Flat

Now more than ever, it is crucial to do your research before moving forward with granny flat construction. This is particularly true in view of Australia’s ongoing housing crisis, rising rental costs, etc. This includes an increased demand for aged care and knock-on consequences like homelessness.

In light of this, here are some things to keep in mind when going through the process of adding a granny flat:

Be smart about your investment. Understand what size and style of granny flat will suit you best for both space and investment purposes. The yardstick? A standard granny flat is expected to add about 32% to the value of an existing home.
Watch that the cost of construction does not exceed your set budget. There is always a possibility that there will be cost overruns when building your granny flat. In these instances, you could run the risk of overcapitalisation. In these instances, granny flat kits can be a highly flexible yet budget-friendly option.

Be highly selective when it comes to design and materials. For example, steel framed homes will last much longer than typical alternatives. Consider smart design for the future, such as wheelchair access and thermal comfort.

Ensure that you look for an affordable granny flat kit homes supplier backed by a long-standing team of specialised technicians and consultants. Whether your searching granny flats Brisbane, Sydney, Melbourne or any other location across Australia, we can help you find the most appropriate solution in granny flat packages and other customisable options.