You might have a hidden income stream to help hose down those overheated mortgage repayments.
Granny flats are seeing a resurgence in interest from homeowners seeking to add an income stream to their property, reports Australian Property Investor.
“Amid escalating interest rates and the daunting challenge of meeting mortgage payments, home owners are increasingly exploring the idea of investing in granny flats as a strategic addition or upgrade to their properties,” it writes.
“Notably, this avenue presents a viable alternative for those who lack the capital for standalone secondary properties or townhouses yet, possess larger properties ripe for expansion.
“Beyond simply adding value to the property, these secondary units offer the enticing prospect of generating additional income for home owners. Moreover, the depreciation deductions available for granny flats serve as an attractive financial incentive for investors.”
So where do you start?
Understanding council regulations is a good first step.
Some established granny flat or modular home building companies can take care of council approvals for you. But a call to your local council or a visit to their website can also be a good place to start.
Also, it’s important to talk to local real estate agents. If your granny flat is not actually intended for granny and you want a rent-paying tenant, you’ll need to find out what tenants want in your local area and what kind of rent you could expect to earn from a granny flat.
Get some financial advice to understand if the rent will outweigh the cost of financing your build.
If you decide the numbers stack up, you could be putting that spare corner to good use for many years to come.
Thinking of investing? Contact us for a chat or talk to us about landlording.
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