At Hue Homes we are seeing more and more clients come to us with ideas for building a granny flat in Wollongong.
These additional tiny homes are great for many reasons, whether it’s to create more room and space or generate a little extra income. A granny flat is well worth looking into.
1. Raise Your Properties Value
Building a granny flat on your property is a great way to boost the value of your block for a reasonably small investment. Granny flats can cost anywhere from $90,000 to $150,000 depending on size and design and can add more than double the investment to the value of your home. In most cases, if requirements are met, there is no need for DA approval. For further information about this, speak to the team at Hue Homes on 02 4263 1074.
2. Additional income stream
Renting out a granny flat provides a perfect second income. Whether it’s long term rental or short term via AirBnB, the return on investment can yield up to 20% on a rented out granny flat. However be mindful in cities like Melbourne, Brisbane or Adelaide you cannot rent out a granny flat unless it’s to a family member. Check with your state and local government laws before placing a granny flat on your property.
A granny flat generating income can also present additional tax benefits. In the same way as an investment property, you may be eligible for tax depreciation benefits on assets and capital works. This can save you money in paying less taxes. We recommend discussing these potential tax benefits with your accountant before you build.
3. Home Office
Working from home became a necessity during the pandemic and many companies have now allowed many of the workforce to work from home more often. Having a dedicated office is sometimes difficult in any home, however a Granny flat provides a dedicated home office space that allows for work with no distractions.
4. Teenagers Study/Retreat
Anyone with teenagers will tell you that houses can get very full with growing children. Especially if your home becomes the meeting place for their friends! Building a granny flat as a teenagers retreat gives the kids their own space and keeps the mess and noise out of the main house.
If you have teenagers in the final year of school, study, assignments and exams are the number one focus. A granny flat provides a quiet space away from the house for them to study and get prepared for final exams.
5. Traditional Use
Granny flats are called that for a reason. They were initially designed as a home for elderly family members so they are close to family and support when required. They’re perfectly sized for one or two people to live comfortably allowing them to maintain independence and providing respite from the main house.
Another use that we are starting to see more is a granny flat becoming a home base for Grey Nomads. Retirees who pack up the caravan and travel around the country will always need a home base, and a granny flat is perfect for that purpose.