Whether you are building a new home or have some extra space on your existing plot, constructing some additional rooms to act as a separate dwelling – a granny flat, can potentially be a great way to maximise the benefits associated with your property.
When a property investor is starting out, it can sometimes be beneficial for them to first undertake a lower-risk project. A small-scale development like a granny flat is an example of such; they are not only relatively cheap but can often offer immediate cash flow, which can help to ensure that the investment remains financially sustainable.
In the current market, there is considerable demand for granny flats, particularly in metropolitan areas and their surrounding suburbs. With rents looking set to continually rise, residing in a granny flat could very well become an increasingly attractive option for young individuals or couples.
For property owners with a family or looking to have a family, a separate dwelling could provide a means through which to set their children up for an independent lifestyle. In today's property market, young people are finding it increasingly difficult to move out of home due to the financial independence that is required to make such feasible. A granny flat could potentially be an option that enables children to move out of home (or at least away from it), but at a fraction of the usual cost.
Adding a granny flat to your home or investment property could potentially act as a low-risk investment, or provide a measure of residential security and independence for your family members – perhaps the greatest benefit of this type of dwelling is that it has the capacity to deliver both. However, before undertaking any type of investment you should always ensure that the property is going to be financially feasible for you.
For more information about property investment options in your area, please contact your local Century 21 office.