Are you looking to add granny flats in Melbourne? Before you do that, how about a bit of insight on the granny flats? These are certainly a clever choice to add to your house. A granny flat is an additional small building that people build to accommodate other people.
By adding it, you can get tenants or provide a home-like place to your family like young adults, grandparents, and so on.
It is to give a sense of individual living to any person and privacy. But can it help you increase the value of your property? Well, let’s find out.
- The Construction Cost Of A Granny Flat
The first thing you need to consider is the construction cost. Granny flats are smaller houses, like 200 square feet, to accommodate one or two people at best. However, it can cost around $100,000 to build a standard granny flat.
Does that add value to your property? It would depend on the type of property you have. Do you see the rates hiking up in the future to make up for the $100,000 at least quickly? Then you can consider it.
- The Actual Growth Numbers
According to the expert insight, adding a granny flat can increase a property’s value by 30%. You can also rent it for at least 29% more value than any other similar place. In other words, Granny Flat is an excellent choice if you want a consistent flow of money. The circulation of money will help you keep things in check.
You can even increase the rent by up to 20-29% as you deem fit. So, if you don’t plan on selling the property right after creating a granny house, it is a valuable addition.
The Overall Benefits Of Granny Flats For Value
Let’s take a look at the short points:
- Almost everyone wants to have a granny flat. It is easier to find people to rent a granny flat too. You can rent it to anyone. You can also find many elderly to retired personnel to rent it. The rent money brings you cash flow to conveniently add as an asset.
- The construction cost of a granny apartment is much less than building a house. It doesn’t require a specific piece of land. Thus, you can repay it, if your loan, more conveniently.
- You can boost the resale value of your entire property by at least 30%. That is a significant difference, and with time, it is bound to go up.
Pro-Tips: If you can invest in building premium-grade granny houses, it can increase the property value. For example, adding stairs and another floor, with double bedding instead of single bedding. These factors can make the granny flat a worthy investment.
These are the qualities of a granny flat that could add value to your property. However, if you’re moving into a house or buying a property with a granny flat, don’t forget to get a pre-purchase inspection.