Your home is the pride of your family. A haven where you can spend unforgettable moments with your loved ones and a shield against changes in the economy. But, like a good proportion of Australians, you could face a pressing problem. Your beloved dwelling might now be too small for your requirements. Have your children grown up and now need their own space? Have you started a new professional challenge and need a separate office for your venture? Does your significant other desire a studio for their artistic ambitions? In that case, you’ll have to make a decision.
On the one hand, you can browse the Sydney market and explore the opportunities offered by the local real estate bubble. However, as house prices listed on Australian real estate markets have been skyrocketing in recent years, your search will most likely be futile. The second option, however, is more practical and involves using the services of a granny flat builder to construct a brand-new accessory dwelling unit for your requirements. Why go for custom granny flats? Practicality and cost-efficiency
Custom granny flats in Sydney, when built by experts, are durable and cost-effective buildings that will add extra value to your main home and provide you with the space needed for daily activities. Granny flats are not simple additions to your dwelling but are mini separate properties that can be used for a variety of purposes. Do you want to host your aging relatives? Then, ADUs are ideal. Do you wish to obtain rental profit? In that case, a granny flat will be a perfect construction for your ambitions. ADUs are versatile and efficient buildings. Therefore, in recent years, they have become a common sight in Australian backyards.
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What Are The Financial Advantages?
Granny flats have significantly increased in popularity in recent years for reasons that are easy to understand. Do you need extra space, or do you want to benefit from a passive income? If so, few investments are more profitable than a granny flat. The average weekly rent for an ADU located in NSW is $500 per week. In other words, if you rent your unit for the whole year, your rental income before taxes will be $26,000. Considering that a two-bedroom ADU designed by a granny flat builder can be finished for around $130,000, this means that in less than five years, you will recoup your initial investment.
Sure, you must also take into account your tax bracket. But overall, the profitability of an ADU constructed by a granny flat builder is hard to beat. Plus, ADUs can significantly improve the real estate value of your main property. The median price of sold homes in and around Sydney is $1.4 million. But for the sake of simplicity, let’s say your house needs some work, so the correct selling price for it would be $1 million. By investing $100,000 in high-quality custom granny flats in Sydney, the market value of your dwelling will increase by a minimum of 25-30%. You will more than double your money, and you will still maintain rental potential.
Custom granny flats are an excellent financial investment that will combine the practicality you need with the economic profitability that you expect. Moreover, granny flats, thanks to the AHSEPP policy introduced by the NSW government in July 2009, do not require council approval for construction. The completion time of an ADU is, therefore, much shorter than that of a primary property; the costs are reduced, the paperwork is simplified, and the customisation possibilities are diverse.
What Are The Regulations For Building A Granny Flat?
In NSW, if the unit you are building meets the standards imposed by the Affordable Rental Housing Environmental Planning Policy, then you will not need Development Approval. Plus, the regulations of the AHSEPP Act are relatively easy to follow. Granny flats, under NSW legislation, cannot have an internal volume of more than 60 square metres or be located on a plot of land totalling less than 450 square metres. In addition, the maximum height of the structure cannot be more than 8.5 metres, and the ADU must have a separate entrance and keep a distance of 3 metres from trees that are more than 6 metres in height.
ADUs aren’t permitted to have a basement, must be developed adjacent to a principal property, and must comply with the building codes active in New South Wales. Are granny flats hard to build? Quite the opposite, actually. While the average construction time of a typical Australian house takes between six and twelve months, an ADU constructed by a professional granny flat builder can be completed in less than twelve weeks. The complexity of construction is lower, the paperwork is less intense, and the attitude of neighbours towards the project is usually favourable. ADUs benefit local communities and are perhaps the most effective way to counter the ever-lasting Australian housing crisis.
What Other Advantages Are There?
Granny flats are the best way to increase the usable space at your disposal. Do you need a storage room? Have you always dreamed of a home gym? Do your friends and family need an extra room when they visit you? Then, an ADU will be an excellent idea. Moreover, granny flats are flexible and can be an adaptable tool tailored to your needs. Want to round up your income? Then, you could move into your ADU while renting your main property. At the same time, as the name says, granny flats can be a way to keep your aging parents close.
The medical condition of your loved ones has worsened, and you don’t want them to be away from you? Then, granny flats can be a solution to be in close proximity while also allowing them to retain their independence. In recent years, granny flats have become familiar sights in Australian backyards, are the cheapest and quickest way to earn a passive income, and can be transformed into anything you need, from home offices and studios to gyms, bedrooms or even workshops.
The Best Idea You Can Have
When built by a granny flat builder, a high-quality ADU will be the best way to improve the financial situation of your family, increase your living space, gain tax benefits and provide affordable housing solutions to people in need of a good offer. Granny flats are all the rage right now and for a good reason. While the median price of properties in Perth, Melbourne, or even Canberra continues to soar, granny flats are a bastion of stability and stand out as cheap and affordable constructions that can make a decisive contribution to the market value of your home.
The flexibility of granny flats makes them perfect for any family. Plus, due to the simplicity of the legal procedures that are associated with ADU construction, these types of projects are generally finished in less than 12 weeks. Are granny flats the solution to all the problems faced by the Australian real estate market? No. However, they are a significant step forward, and the impact they bring to local communities and regional small businesses cannot be ignored. Granny flats, overall, are a net positive, and their mass adoption is a bright spot in a housing sector that has struggled in recent years.
