The concept of building a granny flat to create more space is nothing new, but these days smart investors are reaping the financial benefits of adding a granny flat to existing rental properties. Granny flats are a great way to generate extra rental income and create instant equity in a property.
Things to consider when building a granny flat – quality & style matters.
There are many ways to make a granny flat look attractive to a potential tenant or purchaser. The main points to remember are that the building needs to be finished to a high standard and needs to offer the inclusions that today’s rent market require for instance, air-conditioning, a dishwasher and ceramic cook tops etc. Even smaller items such as fly screens, security doors and window furnishing makes a noticeable difference.
When choosing a design and colour scheme for your new dwelling consider the main property and the surroundings. Think about whether you want the property to blend in or stand out – rooflines are an important design element that can dramatically change the look of a home. A skillion roof will modernise the exterior, whereas a hip or gable roofline will often blend in better with homes in the area.
Deciding whether to use brick or weatherboards – options explained.
Choosing to build a granny flat using brick or weatherboard is a personal choice – it comes down to the look you want to achieve and the cost. Brick has long been a favourite building material in the housing industry due to good thermal properties and being low maintenance. However, when it comes to building granny flats weatherboard is the most popular cladding option because it’s easy for carpenters to install, saving you time and money. Weatherboards come in a broad range of finishes to suit any style of granny flat and the inclusion of a quality insulation system will make a huge difference to how comfortable your granny flat will be year-round.
What upgrades are important to buyers and tenants?
Potential buyers or tenants will be looking for modern neutral colour schemes and modern finishes throughout. When it comes to flooring people will be looking for durable hard wearing surfaces such as tiles or vinyl as they are easily cleaned and are extremely durable.
Don’t be tempted to personalise the space with too many bright colour choices when it comes to permanent fixtures such as tiling or kitchen cabinetry – unless you are personally going to be living in the granny flat yourself! It’s generally safer to add character and colour with artwork, cushions and soft furnishings.
The answer to ‘How much value a granny flat adds to your property’ is a tricky question to answer – it depends on a broad range of factors, including the position of your granny flat in relation to the main property, products & finishes, quality of the workmanship and the location where you are intending to build. Suburbs where there is limited opportunity to build new dwellings, such as built-up inner city areas often benefit the most when it comes to valuation time. Property valuation experts have been quoted as saying ‘granny flats that meet council compliance can increase in value by 20 – 30% of their build cost upon completion’.
Do you have a property that you think might be suited to a granny flat dwelling? Trenz Granny Flats have built a reputation as a quality granny flat company in the Newcastle region and we would be happy to assist you with any questions you may have.
To find out more about building a granny flat visit www.trenzgrannyflats.com.au or give Terry a call on 0432 331951.
*The information expressed in this article is based on our own personal experiences and findings. You should conduct your own extensive research and/or talk to a financial advisor prior to making any investment decisions.