Believe it or not, a granny flat is no longer just for grannies. From the rise in sophisticated multi-generational living to their alluring investment potential, building a granny flat in your backyard is becoming increasingly popular. And for good reason.
Here are our Top 5 reasons why you should consider a granny flat for your property.
#1 – Multigenerational living
The most popular reason for a granny flat is to bring your loved ones, both young and old, closer to home.
If an elderly relative can no longer stay in their home and a retirement home isn’t a desirable option, a granny flat lets them live with the security of having you right next door, without imposing on space and privacy.
On the other hand, having a separate retreat like a granny flat for your teenagers or your adult children who are staying at home longer than ever before, is a great option, while you get to have the family home all to yourself.
#2 – Extra source of income
Who doesn’t like a bit of extra cash flow? Granny flats have become a popular rental space for short and long-term stays — like Airbnb.
Or if you’re looking for a permanent tenant, there’s never been a better time than now to look at a backyard investment as Perth grapples with a rental crisis that shows no signs of slowing down.
With limited rentals (less than 2,250 properties) and rents continuing to rise (6.7% over the past 12 months), there is high demand for rental properties as the Perth market struggles with high demand and limited supply.
Alternatively, if you’re planning on retiring, downsizing or hitting the road to adventure, building a granny flat as your home base allows you to rent your family home for passive income.
#3 – Increase the value of your property
A second dwelling on your property is a huge bonus when it comes time to sell.
Potential buyers with teenage or adult children, or aging parents will see the appeal in a separate self-contained home on the same title. As well as investors who can see the potential given today’s rental market.
#4 – Tax Depreciation
Just like any other investment property, a granny flat investment should be able to give you significant deductions come tax time.
You can offset most property expenses against rental income, including interest on any loan. You may also be eligible to claim capital depreciation.
Advice in general in nature, speak with your accountant or finance professional for expert advice.
#5 – An alternative to a home extension
Building a granny flat is a great option if you’re looking for more space in the home, but don’t want to compromise your living situation whilst construction takes place.
By adding a granny flat to your backyard, your main house remains livable and untouched. If you undertake a home extension there is likely going to be some disruption to your family’s living situation while construction takes place.
With a granny flat, you get all the benefits of creating additional space on your property without the interruption from trades walking throughout your home, the construction or demolition of walls and your personal belongings untouched.
Now that you’ve discovered the many reasons why a granny flat can benefit you and your family, enquire below so we can help customise a granny flat for you.