What does it mean for investors?
Building a Granny Flat can add value to your property. If you have the capital, you can purchase it upright and enjoy the rental income plus any capital gain associated with the property. Usually a common approach in building a Granny Flat is by financing with a bank. Depending on the interest rate and the overall economic health, you can be geared positively or negatively.
Positively geared investment means that your rental income out-weighs the expenses which includes interest repayments.
Negatively geared investment means that your rental income is less than the expenses. If you are in this situation, the Australian Tax Office (ATO) may provide you with tax claims.
Liz is planning to generate extra income for her retirement. As she has a land space of 450m² and a backyard space of more than 60m², she decides to invest in a granny flat by taking out an interest only loan.
Annual Interest rate = 5.3%
Interest rate repayments = $102 p/week
Granny Flat rent = $350 p/week
Weekly Surplus = $350 – $102 = + $248
Monthly Surplus = + $992
Yearly Surplus = + $11,904
You might also want to compare your granny investments to buying a property or unit by using our ROI calculator.Back to Index
How long does it take to build a Granny Flat?
Our building process usually takes around 10-12 weeks.Back to Index
What is the Granny Flat approval process?
At “Granny Flats for Less”, we do the approval for you which means less stress and headache! Giving you a peace of mind.
The approval can be processed in two ways:
- Complying Development: Approved by a council or accredited certifier as long as it meets the standards in the Schedule 1 of the AHSEPP. The certifier notifies the neighbours of an application 14 days prior to the approval. And once all approved and certified, the owner needs to notify the neighbours 7 days prior to commencing any work.
- Development Application: If for some reason, the granny flat does not comply with the standard in the Schedule 1 of the AHSEPP, a development application can be applied to your local council in which they will assess the proposal in accordance to AHSEPP and any other relevant policies.
How much do Granny Flats cost?
At Granny Flats for Less, cost of building a granny flat mainly depends on number of bedrooms you may want to include.Back to Index
What is a “Granny Flat”?
A Granny flat also known as a “Secondary Dwelling”, is a self-contained dwelling which is:
- built in conjunction with the principle dwelling,
- on the same land as the principle dwelling; or
- within, attached to, or separate from the principle dwelling.
The maximum floor area for a granny flat is 60 m² and the site to be built in must be minimum of 450 m².Back to Index