Sydney Granny Flats
With more relaxed government regulations, Sydney granny flats are more popular than ever.
Not only do they serve a useful purpose as extra accommodation, many people who have the extra room on their property are keen to cash in on the investment side as well.
First, you need to analyze the viability of a granny flat on your property and indeed in your suburb.
According to Right Property Group buyer’s agent Steve Waters, there are several major areas that you need to make sure you cover:
Council - “The first thing to do is contact the local council to find out exactly what you can and can’t do,” says Waters.
“What frontage you need, how many square metres you need, the zoning, whether you can put a granny flat on your property.”
Getting the council involved at the early stages will stop you from getting your hopes up only to suffer a surprise rejection down the track.
Demand - If you want to get a return, you need a ready supply of tenants willing to provide it.
Not everyone wants to live in a family’s backyard.
Talk to local real estate agents to find out if there is demand in the area for granny flats and how much rent you might expect to get
for one, then check to see how many are listed for rent online and in the newspapers.
“Drive around the suburb and see what type of granny flats are in the area,” says Waters. “Some of them can look like shipping containers, which is not aesthetically pleasing and may reduce the value of a house rather than add to it.”
Tip: The most ideal properties are corner blocks, because the house can face one street and the granny flat the other. This minimizes privacy concerns.
Costing - Get in touch with builders and specialist granny flat construction companies and have them quote the construction work and any other costs. Based on the quotes, get a real estate agent to give you an estimated market appraisal, not only on rent, but also on value as a pair of dwellings, so that you know you won’t end up in a negative equity position.
“Granny flats can be a fantastic strategy if done correctly,” says Waters. “In the right area, on the right piece of dirt and with the right construction costs.
Don’t do one just for the sake of it. Think of the whole parcel and the real net effect on your whole property, rather than just as individual dwellings.”