The real estate bubble in Australia has not burst yet the way that it has in the rest of the world. House prices are continuously increasing and property owners are looking for ways to maximize their income and their profits through investment properties.
What is a granny flat?
It is a residence that can be either semi-attached or even completely detached coming from a homeowner’s main house. It is another residence, complete with its own living space, kitchen and bathroom for renters. They are typically located above the garage or on a completely different location on your own property.
How do they add value?
They add value to your property by providing the basis for dual-occupancy, which is any time two separate families live on a single property in distinct dwellings. Property value is greatly increased with the help of a second, although much smaller, residence on the property.This is because owners now have the option to rent the granny flat to a tenant and make a profit from the flat as a rental.
Use of a granny flat
Even if you opt to add a granny flat for a property, you will not be required to book it out to someone else. Many Australian residents decide to provide a home for his or her elderly family members, such as a parent or grandparent, inside granny flat. This particular you the option of looking after your elderly family member without the trouble of sharing your own home with someone else. Your elderly family member lives on your home but everyone has their very own personal home room.
Additionally, some families decide to provide shelter thus to their college age children by providing them the granny flat to call home in while going to university. This option is the one which many families prefer as it gives children to be able to live on their very own without going beyond the boundary from home or needing to pay rent. They are able to focus on their particular studies while still maintaining their freedom using their company parents.
You also have the option of renting the flat to a tenant. This means that your home is now being occupied by someone else, perhaps a stranger or friend or family member that wants a place to rent. To make certain the renter knows the stipulations, rules & regulations that are included with leasing your granny flat you’ll want to provide the renter using a rental agreement that you just both agree in before signing. Capital t.his guarantees you are legally due the amount of the rent stated in the agreement each month and can evict the tenant if the tenant cannot pay the fees associated with living in the granny flat. In addition, your rental agreement should state that the property cannot be damaged in any way.
It is important to ensure that before building, you comply with all regulations and stipulations regarding the size and décor of this property type. The only considerations you need to make are with building controls such as the ratio between the height and floor space. Before you begin construction you must do some research to find out what your entitlements are in relation to the cost of the construction
Increase your income
These kinds of flat types supply a great source regarding rental income. If you build a 1 bedroom duplex you’ll not receive as much rent as you would with two or more bedrooms and ample size to rent to some family. The more you can rent your nana flat for, the more money you can to your finances!