The Reserve Bank of Australia has finally chosen to tighten monetary policy. Variable interest rates, which had been very low for some time, are expected to rise again affecting many homeowners’ mortgages across the country. Banks immediately boosted their rates after the first rise and more rate rises are expected throughout the year.
An upward trend for interest rates may mean homeowners and aspiring homeowners look for alternatives to the ‘knock down rebuild’ project or upsizing with a new purchase. So, let’s consider – the great Australian Granny Flat.
A granny flat could help you insulate your lifestyle against cost of living and interest rate rises. Building a granny flat on an existing property allows you to make the most of every square foot of your home – and you’d be surprised how spacious and accommodating they can be. Most importantly, a granny flat can offer your build project financial advantages including making the best utilisation of existing space.
Why are granny flats such a good investment right now?
Building granny flats on houses in Australia allows for secondary and independent living space. By renting out a granny apartment, you can more quickly pay off your mortgage and gain return on investment. Yesterday's granny flat designs have transformed into today's trendy home spaces, providing all of the comforts and facilities of a complete home.
Affordability for the Investor
Purchasing or constructing a granny flat is often less expensive than financing a stand-alone investment property. Depending on size and spec, granny flats start from $130,000 to build – with all its inclusions, that’s a fraction of the cost of buying or building a brand new three-bedroom home. Lower capital requirements make them easier to save for, or finance.
Improved Property Value
When it comes time to sell down the track – your investment now, will pay off later. Recent research found that more than half a million homeowners could boost home values by 30 per cent by building a granny flat. Cubitt’s identified demands for homes with granny flats as a key real estate trend for 2022.
Many buyers will jump at the chance to purchase a property with alternative living space or option to use for income streams. Whether it’s used as a guest house or a teenager's getaway. Making space for additional occupancy always pays off when it comes to home and land valuation.
Give family space – and a leg up
Keeping your adult kids close in a granny flat makes sense. Constructing a granny flat could be a way to help your children in saving for a deposit at a time when rental prices are at all-time high, and prices keep buying out of reach for some first-time purchasers. You may even consider the option of trading places later in life, to let your children and grandchildren move into the family home.
Bring family home – release assets for use in later life
If your parents are ready to downsize and release equity from a larger home, building a granny flat could be a way to provide ‘instant superannuation’ for your aging parents. By selling the family home and building a brand-new, purpose-built granny flat on your property, your parents can be close at hand and living independently – or using it as a home base while they travel. Entering a non-commercial written arrangement or ‘granny flat agreement’ with your parents could also help them provide the funds to build the granny flat, without you later incurring capital gains tax. There are specific rules around this you can check with the tax office and Centrelink.
Hassle-Free Approval
Granny flats under a Complying Development Certificate (CDC) can be authorised in as little as ten days, depending on compliance with the Affordable Rental Housing SEPP. With an experienced in-house council planning and drafting team who take care of the approval process, you can rely on the Cubitt’s team to accompany you during the entire process.
At Cubitt’s, we’re passionate about making the entire building process an enjoyable and stress-free experience for our customers. This is why we have a high-calibre team of friendly customer service representatives, design consultants, in-house council planning and approval experts, and a reliable construction team. Get in contact with Cubitt’s today to discuss your granny flat project on 1300 721 150 or hello@cubitts.com.au
Information contained in this article is of a general nature and does not address the circumstances of any individual or entity. Nothing in the site constitutes financial advice. You should consider seeking independent legal, financial, or taxation advice.
Free On-Site Assessment at Your Property
Interested in finding out how to make a positive investment from a Cubitt's Granny Flat or Home Extension? Get in touch for a no-obligation site inspection today.
We require your name, email and phone number to get back to you - and the more you can tell us about your build project, the more effectively our local teams can help.
Or call:
VIEW MORE OF OUR
Recent Blogs
Building Your Accommodation Business from Scratch in Rural NSW: A Comprehensive Guide
Whether you’re envisioning a cosy bed and breakfast or a cluster of serviced apartments, here’s a step-by-step guide to help you turn your dream of building an accommodation business into a prosperous reality.
What the Inland Code Means for Your Rural NSW Granny Flat Project
Are you considering adding a Granny Flat to your property in rural or regional New South Wales? The Inland Code does not permit complying development for the erection of secondary dwellings, commonly known as granny flats. This means that for the 69 Local Government Areas (LGAs) falling under the Inland Code, obtaining approval for a Granny Flat requires a Development Application (DA).
Unlocking Affordable Housing: Cubitt’s Calls on Premier Minns to Take a Cue from QLD
Cubitt’s Granny Flats advocates for affordable housing solutions, drawing inspiration from Queensland’s grant incentives for smaller builds.
ACT Land Zone RZ1 – You Can Now Build a Dual Occupancy up to 120m and Subdivide Your Block
ACT Canberra residential zone 1 (RZ1) blocks measuring 800 square meters or more are now eligible for the construction of two homes. Here is a quick FAQ on some elements of this change to help you start planning your ACT Dual Occupancy
End of Year Sale! $10k Cashback Offer When You Sign in 2023
To set up our schedule for 2024 we are offering an amazing $10k off your tender price while it’s still valid.
Top 50 NSW Suburbs With Granny Flat Potential
There could be a million residential properties across the nation with the potential to accommodate a Granny Flat. Is your suburb on the top 50 list?
