Uncover the Hidden Value: Why a Granny Flat is a Great Investment
Let’s face it – granny flats have risen in Sydney over the past few years. Most Australians with a backyard space on their property consider adding a granny flat to it. Additionally, people looking to buy properties prefer those with a granny flat.
Well, this leaves you wondering, why is this so? Are granny flats investments so lucrative that everyone is looking to get them? Well, stick around as we uncover this, but first, you should know that building a granny flat is not a straightforward process; there are strict rules behind the entire structure.
Today’s article will explain why you should consider building custom granny flats in Sydney and the surrounding areas.
Investment Potential and Financial Benefits of Building Granny Flats in NSW
1. Earn Extra Rental Income
One of the leading financial benefits of building a granny flat is that you can now have some extra income. During the times of the year when your family does not use it, you can rent it out. People can stay longer periods in them without them being in your space, which implies more income for you.
Whether in Sydney, Campbell or Liverpool towns, granny flats will always bring some extra cash flow from visitors.
Additionally, if you are renting your property, you can include the granny flat to earn you some extra coins. This way, you achieve your financial freedom faster.
Also, granny flats allow you to pay your mortgage costs quickly! Look at this; your granny flat is earning you $350 to $550 per week, which equates to $1700 – $2300 per month and $20,000 to $28000 per week. These proceeds could go to clearing the mortgage of your main home, reducing the length of your home loan by 14 to 18 years.
2. Increases Your Property’s Value
If you already have a home, building a granny flat beside it will help increase the overall value of your property. Some granny flat investments have provided investors with up to a 25% increase in the property’s worth from the original. If you get custom granny flats in Sydney, you can get the water and electricity meters attached to the flat so that you do not need to pay more on your bills.
3. You Spread Your Income
If you have an investment property, it will be vacant at some point, so there is no money flowing for you. However, if you build, say, 2 bedroom granny flats beside the bigger property, it is unlikely that both will be vacant at the same time. And if this happens, there is a likelihood that one will be occupied sooner than the other.
All this is to say that you always have an income to depend on when your investment property is not bringing any returns.
4. Enjoy More Tax Depreciation
As long as you have a granny flat, you have extra claimable on your depreciation schedule. Additionally, if you have brand new granny flats, you can claim some worthwhile amount on paper losses. This, in return, helps reduce the tax you should pay each year.
Clearly, this is an excellent investment! The less tax you pay, the more income you have!
5. Get Protection from Interest Rate Rises
Building a granny flat on your property will ultimately protect you from interest rate rises. Typically, having it on your property will protect your loan from an interest rate rise of 2% to 3%.
If you are considering venturing into granny flat investments, talk to Brickwood Homes. We will direct you to one of our granny flat builders to walk you through the journey of earning some extra income while protecting you from rising interest rates.
6. The Rental Market is Rising
One thing for sure about the granny flat rental market is that it has been rising steadily in the past. Most people vacationing around Western Sydney, Campbelltown, and Liverpool prefer renting a granny flat during their visits. Therefore, if you are in these towns, you are making a suitable investment and will surely get extra income.
So do not be left behind – talk to trusted granny flat builders Sydney, Brickwood Homes to start building your granny flat today.
To sum up, investing in a granny flat is a smart financial move with numerous benefits. You will earn extra rental income even when your home is vacant. Furthermore, a granny flat significantly increases the value of your home, so in case you want to sell it, the returns are lucrative. So indeed, it is a good investment!
So, if you are in Sydney and the surrounding areas, go ahead and get granny flat investments. At Brickwood Homes, we understand their potential and the hidden value of granny flats. We will walk you through this investment decision from planning to construction so that you can maximise the financial advantages of granny flats. Contact us for a free consultation and discover the hidden value of a granny flat.