The 2009 State Environmental Planning Policy (Affordable Rental Housing) has definitely changed the way we now see secondary dwellings. It has allowed people to maximize the value of their current home/land by building a granny flat. These granny flats can now be rented out to third parties as an additional income, where before it was only for family members.
This legal update turned granny flats into very profitable long term investments. Building a second dwelling on your land has multiple financial and non-financial advantages.
The costs of building a granny flat range from $90,000 to $200,000 for detached 2 bedroom granny flats of around 60sqm (largest you can build with all inclusions). The financial advantage is obvious, as buying a one bedroom apartment in Sydney can go up to $450,000. Building a secondary dwelling seems a better investment, as you won’t have to pay any stamp duty, while you can still benefit of tax deductions. This policy also brought a change on the approval process for secondary dwellings. You can now get an approval by the relevant consent authority within 10 days from submitting your application.
Being able to rent secondary dwellings to third parties is a great long term source of extra income. Renting a granny flat in Sydney goes up to $300-$650 per week depending on the location, which is great considering the building costs of such a unit. The demand is very high, as the rental for one bedroom apartment in Sydney can go up to $520-$850 per week.
A secondary dwelling that accommodates the elder members of the family can still have financial advantages. This way you won’t have to pay up to $1,500 per month for accommodating one person at a nursing home. Allowing younger members of the family to live in such units helps them save a lot of money too.
Granny flats provide perfect multi-generational living arrangements. Granny flats allow elderly parents or teens an independent living arrangement whilst still having support. This way, parents can live very close to their children and grandchildren, while still enjoying their private life.
A granny flat can be a perfect guest house for friends or relatives that want to visit. It is also a great solution for family members with hobbies, such as musicians or sewers for example. This special type of housing is the perfect solution for rebel teenagers that want to experience living on their own without giving their parents a heart attack.
Classic Quarters Group is a leading Sydney building company that provides a wide range of building services. We build fantastic granny flats in the Sydney area. We can customise a granny flat to your needs. Contact us today to find out more.