We have more than 70 years combined of providing home additions in Perth, but even we are surprised at the rising popularity of an old standby: the granny flat.
For those who don’t know, a “granny flat” is a second or “ancillary” dwelling on a property that already has a house. Sometimes, garages are remodelled into granny flats or a second floor is added to the garage to turn it into a granny flat. Recently, though, more and more Australians are building a separate granny flat on their property.
Making the Most of Your Granny Flat
The State Government recently decided to allow granny flats in WA to be rented to people outside of the family. While a lot of granny flats are still being built for parents or even for adult children, many Perth area residents are taking advantage of the new legislation by using granny flats as a source of income.
The current popular estimate is that someone who spends between $120,000-$150,000 on a granny flat can “break even” on the cost in seven years. A reasonable rent for a granny flat is around $300 per week and many rent for up to $400 a week.
For someone who intends to hold onto a home for more than seven years, a granny flat is almost a guaranteed moneymaker. In addition, a granny flat increases the value of a property when it is time to sell.
Investors love granny flats because they increase cash flow. While 5% is considered to be a good rental yield on a home in the Perth area, granny flats often produce rental yields in the area of 11%.
Call Next Level Extensions Today
At Next Level Extensions, we are happy to use our 70 years combined experience to help you come up with a granny flat design that matches your home and surroundings. Award winning designer Max Sardi will be happy to provide a free consult.
To learn more, call us today: 1300 948 094.