Is a granny flat a good investment?

Is a granny flat a good investment?

If you are a homeowner with a spacious backyard, you might want to consider building a granny flat on that unused space. Granny flats can deliver rental income, boost the value of your property and even provide you with an extra space which you can use for different purposes.

A lot of millennials choose not to leave home after graduating because they see this as the cost-effective option when they’re starting their career. Parents can build a granny flat for their adult children, giving them some privacy.

Granny flats can also be fitted with a bathroom and kitchen, which is ideal for accommodating elderly family members. On the other hand, they can also use this separate living space as a rental property that acts as a source of extra income.

It is undeniable that granny flats have various beneficial uses. So, let’s take a closer look at how building one can be a good investment for your family.


What exactly is a granny flat?

A granny flat is a second dwelling that is self-contained yet situated within the same block as the main house. Across Australia, constructing one has become increasingly popular. Building companies like Element Construction can custom build the granny flat. On the other hand, we can also take measurements and pre-fabricate the frame.

Here are the common local council regulations that cover granny flats:

  • Granny flats should only be built on a property within a residential zone
  • Only one granny flat can be built on each residential property
  • The total land area of the property should be at least 450m2
  • The granny flat must not be larger than 60m2 but carports, patios or verandas can be added to the allowed floor space
  • The granny flat should be owned by the same person who owns the main house
  • Granny flats cannot be built on a property that is under a community, subdivided or strata title
  • Granny flats cannot be constructed on a property that is primarily used for commercial purposes
  • Granny flats can either be connected to the main house or it can stand alone
  • Granny flats must be built with clear, unobstructed and separate pedestrian access


The many uses of granny flats

The uses of granny flats go beyond second dwelling for our elderly relatives. You can have one built for the following purposes:


Private living space for elderly relatives

If you do not want to bring your elderly parents to a nursing home and you want to keep a close eye on them, you can have a granny flat built within your property. You can monitor them while still giving them the privacy and independence that they want.


Home office

Instead of renting a commercial space, you can build a granny flat in your lot and save money. You won’t have to pay rent, eat out and drive to work. You can even deduct the space from your real estate tax.


Source for extra income

Granny flats are also quite popular on Airbnb as they provide the private living space that travellers want. You can post your granny flat on this website and earn money. On the other hand, if your primary dwelling is too big for you, you can move into the granny flat and rent out your main house for a bigger income.


Home extension

If you have a big family, a granny flat would be the perfect space for your teen children. Since they’re growing into adults, they may want to have privacy and with younger, playful siblings, they might not get this in your home. Build a separate granny flat for them and they will have the privacy that they need.


Space for nurturing your hobbies

Do you enjoy doing crafts, woodwork, sewing or art during your free time? Well, a granny flat is an ideal space to nurture your passion without the disruptions coming from your primary dwelling. With this separate, private space, you might just be able to finish that novel you’ve been working on for some time!


Have your granny flat built by professionals

You may think that building a granny flat is an easy task. However, you must remember that there are local council rules and regulations that you must follow accurately.

Here at Element Construction, we make sure that we follow these regulations carefully when building granny flats. We take pride in providing customer satisfaction while following city standards for construction projects. Rest assured that we will go through lengths just to build your granny flat, just the way you want it.

Call us today at (08) 9473 1610 and our friendly staff will be happy to discuss your vision for your granny flat.