Modern granny flats are increasingly popular across Australia. A granny flat is a self-contained housing unit that has a kitchen, bathroom, bedrooms, a laundry and living area, just like any house and it is often used for an ageing parent.
Building a granny flat in the backyard could be a wise investment for homeowners because it would produce rental income and enhance the property’s value.
Building a modern granny flat is an affordable way to own an investment property. If you are not ready to buy a separate home yet as an investment, you can start with constructing a granny flat first.
There are two commonly known types of granny flats, attached and detached:
The detached granny flat: This type of granny flat is a building that’s completely separated from the main house, it is fully freestanding with a front door and no connection to the main house which provides the most privacy if you would want to rent it out.
The attached granny flat: This type of granny flat is a building that can be attached to the main house as an extension of the existing home, designed to fit perfectly with your property. Its main quality is that it must have its own entrance. This means that there can’t be an internal entry door between the main house and the granny flat.
If you are thinking of getting a modern granny flat, it is very important that you check all the rules and regulations around granny flats that vary from state to state and even from council to council, this means that researching is key for these processes. We do this research for you here in Perfect Square Design, we solve all the problems you might encounter offering the best of the services you can find.
There are many options for you to keep in mind when deciding how to how to set up your granny flat. There are prefabricated and modular homes that can be installed in your backyard, but you can also build a granny flat from scratch.
When it comes to financing the construction of your granny flat, you have a range of options. You can either use the equity you built in your home or apply for another loan. You can also ask your lender if they offer loans specifically tailored to the construction of granny flats or your Mortgage’s mortgage brokers might be able to find a home loan that fits your needs as well. Also, you could, alternatively, refinance your existing home loan with a new credit provider.
A granny flat will help you make extra money if you want to rent it out. Depending on the location of your property, your granny flat could be able to generate a lot of rental income per week, which could help cover the costs of your mortgage.
Compared to a separate investment property, a granny flat is easier to maintain and look after given its proximity to your primary dwelling.
There are standards that all granny flats must meet, the first one is that the granny flat should be owned by the same person who owns the main residence, then the property where the granny flat would sit should have a size of at least 450 square metres and the granny flat should have a maximum living space of 60 square metres. Its veranda or patio space should not exceed 12 square metres. Also, there should only be one granny flat in the property space, the granny flat can’t be built on a property under strata, subdivided, or community title, different states have different rules about granny flats and each state has its own specific set of standards and rules when it comes to building and renting out a granny flat.