In contrast to the rest of the world, Australia’s real estate bubble has not yet burst. Property owners are seeking for strategies to maximize their income and profits through investment properties as house prices are constantly rising. The addition of a granny flat is one method Australian homeowners increase the value of their properties. A Granny Flat is a great investment choice for investment portfolios since it increases the value of the property, get more info.
What is a Granny Apartment?
This is a home that is partially or entirely separate from the main residence of the proprietor. It serves as a second home for renters, complete with a living area, kitchen, and bathroom. They are often situated somewhere else on your property, usually over the garage.
What value do they add?
They increase the value of your home by enabling dual occupancy, which is when two different families occupy separate residences on the same property. The value of a property rises significantly when a second, much smaller dwelling is built on it. This is so that owners can now choose to rent out their granny flat to a renter and profit from the apartment’s rental.
Employing a granny flat
You are not compelled to rent out your granny flat even if you decide to add one to your home. Many Australians decide to use their granny flats as homes for their elderly relatives, such as a parent or grandparents. As a result, you don’t have to deal with the hassle of having to share your house with an aging family member while providing care for them. While your older relative is on your property, everyone has their own private living quarters.
In addition, some families decide to provide their college-age children a place to live in the granny flat while they are in school. Many families like this choice since it allows kids to live independently without having to travel too far from home or pay rent. They can keep their independence from their parents while still concentrating on their education.
A tenant is another option if you decide to rent out the apartment. This implies that someone else has moved into your house and is renting it out—it may be a stranger, a friend, or a member of your family. You must give the renter a rental agreement that you and the renter agree to before signing if you want to be sure they understand the conditions, guidelines, and rules associated with renting your granny flat. This ensures that you are legally entitled to receive the monthly rent in the amount specified in the agreement and that you have the right to remove the tenant if they are unable to pay the costs of maintaining the granny flat. You should also include a clause in your rental agreement that prohibits any kind of damage to the property.
It is crucial to make sure that, before beginning construction, you adhere to all rules and requirements pertaining to the scale and aesthetics of this particular property type. You simply need to take building regulations into account, such as the height-to-floor-space ratio. You must do some research to determine your entitlements in relation to the expense of the construction before you start working on it. Building a lavish apartment with top-of-the-line furnishings and floors will almost certainly cost more than renting the apartment out will. Continue using attractive, durable, and long-lasting accessories and appliances that won’t add a lot to the project’s cost.