If you’re considering https://adelaidehomeimprovements.com.au granny flats Adelaide building, you’ve probably wondered if it’s legal. The good news is that it’s not! But, if you’re looking for a good long-term investment, it’s an excellent option. In this article, you’ll learn why building a granny flat is a smart choice – and how you can generate additional income from it.
It’s illegal to build a granny flat in South Australia.
The regulations for building a granny flat in South Australia have changed since the government first introduced the legislation in the early 2000s. These regulations now state that dependent accommodation (also known as granny flats) can only be built on a lot up to 600 square metres. In addition, the size and materials used in constructing an ancillary dwelling must match those of the primary dwelling. There are also several restrictions on the size and floor area of the granny flat.
The first restriction is that you can only build a granny flat on a lot that is part of your primary dwelling. As such, you need development approval to build your granny flat. This will ensure that you comply with all the relevant regulations. Apart from that, you must also ensure that someone from the main dwelling occupies the ancillary dwelling. You should also make sure that it’s connected to the same services as your primary dwelling. Finally, ensure that your property has at least 600 square metres of space, has a 20 square metre private open space, and meets the deemed-to-satisfy rules for your zone.
While getting council approval for a granny flat is possible, it’s important to note that you must comply with these regulations. Otherwise, you risk being fined. Even worse, your insurance company won’t pay out if you get into a car accident while your granny flat is illegal. And it’s not just the cost of building a granny flat that makes you feel uncomfortable.
It’s a solid long-term investment.
The benefits of granny flats outweigh the disadvantages. While living under the same roof has perks, sharing one space with others can be awkward and cramped. However, a granny flat offers a balanced mix of privacy and social interaction for extra family members and allows you to keep an eye on your ageing parents. It is also a good investment for seniors looking to stay in their homes while they grow older.
Granny flats are a great way to generate extra income from an investment property. One-bedroom granny flats can fetch upwards of $230 per week, while two-bedroom flats can command rents of up to $600 per week. As an investment property, https://adelaidehomeimprovements.com.au granny flats Adelaide can yield an overall yield of five to six per cent per annum. The additional income is also a great way to create a positive cash flow.
When you rent your granny flat out, you can save up to $306,000 on your home loan. This can help you pay off the investment in about 4.5 years. Moreover, you can use the rent to cover mortgage costs and save around $200 000 to $300,000 in interest payments. Even if you cannot afford a granny flat upfront, you can always use the rental income to repay the loan.
It can generate additional income.
A recent Finder’s report revealed that over a third of first home buyers in New South Wales were willing to spend more than $1 million for their home. However, a first home’s median price is around $750,000. The report also revealed that 22 per cent of older Australians receive some form of home care. As a result, families may be wary of locking their elderly relatives in their homes, particularly if an outbreak of COVID-19 is imminent. Thankfully, Adelaide’s Rivergum Homes Managing Director acknowledges that a trend is emerging towards more adaptable housing for the elderly.
The housing market in Australia is notoriously tough right now. Many people are struggling to find additional income. A https://adelaidehomeimprovements.com.au granny flat Adelaide can help you generate additional income without investing much money into your first property. Because there are fewer people in the market to rent to, the demand for rental homes is growing rapidly. And as your family grows older, granny flats can serve as a great solution to this dilemma.
Before beginning construction on your granny flat, ensure you have the necessary financing. The construction process is usually affordable when compared to building a new home. You can also borrow money to finance the construction by accessing your equity or increasing your current loan. And, remember to add maintenance costs to your budget. If you decide to rent out the space, you will have a ready source of tenants. You can also sell the granny flat to a third party for a profit.