Why Should You Be Interested in Granny Flat Designs in Sydney?
Posted by Mark
from the General category at
26 Nov 2023 03:07:31 pm.
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Your house is a treasure. A warm and welcoming environment that, over the years, has given you unforgettable moments with your family. But at the same time, our needs may change as time passes, and what was sufficient in the past may not be adequate today. Your children have grown, and so have your interests? Do you need extra space in which to carry out your activities? If so, you will face problems, as the housing market in Australia does not allow for a relocation that makes financial sense for most people. To expand the space available for activities, you must think outside the box. And here, granny flat designs step in.
Houses with granny flats offer clear advantages over their non-ADU counterparts. For one thing, they are more spacious, and the extra space can be used to house elderly relatives or be rented out for extra income.
ADUs add value to primary dwellings; they are straightforward to build and don't require meticulous planning, their construction time is short, they can improve the standard of living in your neighbourhood, and not least, they are the hottest trend in the real estate market right now. High-quality granny flats are one of the only opportunities Australian families have to expand their space and earn extra income.
The ADU designs offered by professional firms are advantageous because they do not require council planning or a significant investment. A complete, three-bedroom granny flat will cost you around $150,000, a large sum at first glance. But once you look at the overall price of properties in Sydney, you'll see that 150k is a real bargain. Do you want to move to a more spacious home? In that case, you'll have to pay over $1 million. Australia's property market has rocketed in recent years, but this, for business-savvy individuals, could be an opportunity.
The Practical Advantages
As the name implies, the original purpose of granny flats was to accommodate elderly relatives, who would remain under the constant supervision of their children. Your parents are getting older and are slowly but surely moving toward a care facility? In that case, as long as their health permits, you should house them in an ADU adjacent to your property. ADUs are great because they allow your relatives to maintain their privacy while remaining close enough for you to intervene in an emergency. The maintenance costs of an ADU will be lower than those of a private nursing home, and conditions will be better.
Have your children reached the age where they need independence? In this case, turning to the high-quality granny flat designs in Sydney proposed by professional builders will be a great idea. ADUs will be cheaper to build than buying a separate apartment in a different part of the city, will increase the value of your primary dwelling, can be customised to your preferences, and will be a versatile space that you can tailor to your needs. The popularity of granny flats is at an all-time high. And the reason is mainly financial.
Earn Extra Income
Why turn to experts in building houses with granny flats? Time and money. ADUs are one of the most profitable investments you can make for your home. At the same time, Granny flat designs in Sydney are varied and can be tailored to your budget. Your house is worth $1.2 million and is located in a suburb next to Liverpool? If so, investing in a granny flat will be worthwhile. A two-bedroom accessory dwelling unit constructed for $120,000, or 10% of the market price of your home, will add over 30% to its value.
In other words, by investing in an ADU, your home, in the example given, will now be worth $1.56 million, a net profit of over $240,000 when you subtract the cost of the ADU. But it doesn't stop there. Suppose you want to rent out your newly constructed granny flat. Moreover, let’s say, for example, that you own a home in Castle Hill, a NSW suburb 34 km from Sydney. The average weekly rent for a two-bedroom apartment here is $520. If you rent your ADU for $500 a week, your annual rental income will be around $26,000.
In other words, in less than five years, you will amortise the costs of the ADU (without accounting for taxes). Calling on the services of experts in houses with granny flats yields a high ROI, and for many Australian families, it is one of the most lucrative business ventures they can engage in. The median housing pricing for homes in major Australian cities has exceeded $1.3 million, which is unaffordable for most people. Want to invest in your children's future? Then, an ADU is the way to go.
It’s Not Rocket Science
Let's say your family's annual income is between $45,000 and $120,000, which means you have to pay 32.5% tax. At the end of the year, on a monthly rental income of $500, your net profit from your granny flat will be $17,550. In less than seven years, you'll recoup your investment in the ADU. And if you decide to sell your main property, you can expect a 30% boost to your list price. If your home is worth $1.2 million in 2023, in 7 years, or 2030, thanks to the ADU, your net profit after the sale could be $360,000, which doesn't include the increase in property prices that seems to go on and on.
ADUs make sense, and with the help of experts in houses with granny flats, their construction process is straightforward. Thanks to the NSW Affordable Housing State Environmental Planning Policies, granny flats can be constructed without council approval, requiring only a CDC. However, there are also regulations regarding the minimum specifications for the construction of the ADU. The granny flat must be located next to a primary dwelling, have a maximum internal floor area of 60 square meters, and be situated in a yard with a total size of more than 450 square meters. However, granny flats require less hassle than building another type of property. And because of this, their popularity is growing.
It’s a Fantastic Investment
Do you need extra space for your daily activities? Do you want to host your close relatives? Earn a substantial passive income through renting? In this case, using the services offered by experts in houses with granny flats will be essential for your success. Granny flat designs are diverse, can mirror your creativity, and fit your financial possibilities. ADUs can be modern constructions requiring significant investments or simple storage units that you can use to warehouse your extra belongings. Versatility is the key word when talking about ADUs, which cannot be said about other Australian properties.
Would you like to benefit from the advantages of an ADU? If so, you'll need to call on the professional services of an expert in houses with granny flats. The experts you call will be up to date on the latest legal regulations for the construction of granny flats, offer you a competitive price and an accurate completion schedule, work with you to implement your vision, and use only the highest-quality materials to guarantee the longevity of your ADU. Granny flats, when built by experts, are essential to your family's success. And they can be the catalyst behind your long-term financial prosperity.
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