by Devesh Malhotra | Jul 17, 2023 | Granny Flats
Choosing to invest in a granny flat for your property comes with a host of personal value; keeping relatives close by, having a space for guests or offering grown kids an interim living space that’s safe, there’s a lot to benefit from. However, granny flats also offer a lot of value to your existing home and property. The specific value added to your property will vary depending on a range of factors such as size, location, quality of construction, current real estate market and buyer preference. There are some general areas of increased value, though, that typically come with building a granny flat on your property.
Increased living space will always increase value
A granny flat increases the livable square footage of your entire property offering, which increases its general value. You’re adding bedrooms, living spaces and bathrooms to your property’s specifications, which will invariably place you in a higher value bracket in the real estate market. Whether you’d want to actually sell, or if you’re looking for a high appraisal or valuation for borrowing purposes, adding functional, liveable space to your property commands a higher price compared to otherwise similar homes without granny flats.
Rental income potential
Granny flats can provide an opportunity to generate rental income and can contribute to the overall value of your property.
Renting out a granny flat can provide a cost-effective alternative to purchasing or leasing a standalone property for renters (in a very difficult rental environment), benefiting both landlords and tenants. In fact, the NSW government is actively encouraging homeowners to construct and rent out granny flats as part of their efforts to promote affordable housing.
However, before embarking on this backyard venture, it’s crucial to research! There are regulations in NSW and financial considerations to fully understand before renting out your granny flat.
Growth of multi-generational living
In some cases, families may value the option of multi-generational living arrangements. A granny flat can provide a separate living space for extended family members, such as aging parents or adult children, which can be appealing to buyers who value such accommodations. It can also be a non-negotiable, though difficult thing to find, for a lot of property-seekers. Adding a granny flat could land you right in the lap of people seeking to put functional ticked boxes as the highest priority, even above cost.
Desirability
The demand for granny flats has been increasing in recent years due to changing housing needs and affordability challenges. Depending on the local market, the presence of a granny flat can make your property more desirable to buyers seeking flexible living arrangements or additional income potential.
Quality of granny flat
This might be the biggest factor of them all. Your granny flat is only going to be desirable to a buyer or renter if it’s in a condition that meets their standards in aesthetics, functionality, and even safety. If you have a quality guarantee with a known reputable granny flat builder like Acrow, the peace of mind of buyers will be there, and be a plus to the overall value of your property.
by Devesh Malhotra | Jun 29, 2023 | Granny Flats
If you’re considering building a granny flat, then you’re making a smart decision. Granny flats are becoming increasingly popular in Australia, and for good reason – they offer a host of fantastic benefits for families and homeowners alike.
In this article, we’ll take a look at the cost to build a granny flat in 2023 and why it’s all worth it. Keep reading to find out more!
WHAT IS A GRANNY FLAT AND WHAT ARE THE BENEFITS OF HAVING ONE
A granny flat is a small secondary dwelling on a property. Complete with a kitchen and living area, bathroom and often, one or two bedrooms, granny flats also have air conditioning and are complete, comfortable, modern homes.
Originally, these small homes were designed and built as accommodations for elderly relatives. Modern granny flats offer a range of benefits for homeowners and their families, including:
– Extra space and privacy for the family
– Increased investment potential for the property
– Additional living space for the family
SOME OF THE WAYS A FAMILY COULD USE THE ADDITIONAL SPACE
PLAYROOM FOR THE KIDS
“Playhouse” actually! The bedroom makes a useful storage space with the living area a perfect space for playing.
ACCOMMODATION FOR VISITING FAMILY AND FRIENDS
What is a greater pleasure than having friends or family visit? Having a stylish, comfortable and separate dwelling for them!
You can enjoy days together and evening meals then both retire to the privacy and peace of your own home.
ADULT RETREAT
If your lovely, growing family becomes a little too noisy or demanding sometimes, retreat to your parent pad in the granny flat. Freedom for them and relaxation for you.
A HOME OFFICE/WORKSPACE
Now more of us are working from home, your granny flat makes a perfect workspace. With no commute, your own bathroom and even a kitchen for the lunch breaks, you could enjoy a truly luxurious home office.
AN INVESTMENT PROPERTY
Struggling to find an affordable investment property? Consider using your existing space to build a granny flat. This can be more cost-effective and easier on the wallet than buying an established unit, townhouse or apartment, meaning you need to borrow less from the bank and will have quicker repayment options if desired!
With the current levels for rent and high demand for rental properties in the Central Coast region, you could be getting a great return on your investment from day one of receiving your first rental income, if you have an interest-only home loan.
COST CONSIDERATIONS
During the current so-called cost-of-living crisis take advantage of the slowdown in house buying by getting ahead of the game and building your granny flat while being aware of all the costs involved, including:
DESIGN
Designing a granny flat can be an exciting opportunity to create something to suit your specific needs. With Acrow Granny Flat’s experienced design team, you have the freedom to choose from their selection of one- and two-bedroom designs with or without garages, as well as 2 storey options – not forgetting custom layouts tailored specifically for you! Let your imagination run wild and explore endless possibilities – make sure everyone in the family gets involved.
CONSTRUCTION COSTS
Building your granny flat doesn’t have to break the bank! When considering construction costs, remember they are dependent on size and complexity. To get an accurate price estimate for building materials, labour fees, and other associated expenses, make sure you request quotes from multiple builders before committing to one.
Issues causing increased costs for the building industry in Australia
The Australian construction industry is currently facing an unprecedented demand for materials and skilled tradespeople. As a result of this surge in activity, prices have drastically increased – with steel products rising by up to 40%, timber increasing by over 20% and labour costs climbing by 10%. Unfortunately, these shortages are making it more difficult (and costlier) to complete construction projects on time due to delays caused by the lack of supply.
LOCAL COUNCIL APPROVALS
Planning permission and other approvals are a crucial, but often overlooked part of constructing your granny flat. To save you time and stress, Acrow Granny Flats can take care of the entire process for you – getting council approval meaning all costs associated with construction can be factored in ahead of time. Plus our knowledge of the process means we will compile the paperwork the council needs to see, speeding the process and ensuring a stress-free approval for you.
MOVING IN
When setting the budget for your granny flat, you’ll need to consider purchase costs of furniture and kitchenware as well as ongoing utility expenses like electricity, water, connection fees and more. It is also essential to factor in local council rates when calculating what kind of living expense range you can expect. For an accurate prediction on these bills contact local providers directly regarding their estimated charges based on location and usage!
HOW TO KEEP COSTS DOWN WHEN BUILDING A GRANNY FLAT
If you’re considering building a granny flat but want to keep costs down, there are several approaches for you.
Opting for simpler designs with minimal features can save money in the long run and approaching Acrow Granny Flats’ design team about materials could also make all the difference! And don’t forget – when it comes time to furnish your granny flat, shopping around is key; if you search hard enough, chances are high of finding affordable yet stylish items within budget! With these handy hints under your belt creating an inviting space doesn’t have to break the bank.
DESIGNING YOUR GRANNY FLAT
When designing your granny flat, it’s important to think about the needs of your elderly relative or the requirements of your family. Here are a few tips to help you get started:
– Make sure the property is accessible, with wide doorways and a wheelchair-friendly bathroom.
– Choose an easy-to-navigate layout – avoid small, cramped spaces.
– Opt for bright and cheerful colours, or your favourite colour schemes.
– Include plenty of storage space – for whatever usage you choose for your granny flat.
Think ahead, a bedroom now could become a studio or home gym in the future.
ACROW GRANNY FLATS – YOUR PREMIER LOCAL GRANNY FLAT BUILDER
Get the perfect granny flat to suit your needs and budget, with unbeatable customer service, when you choose Acrow Granny Flats!
OUR EXPERIENCE
Expertly crafted by our experienced team boasting 20 years in the industry, we have designed, built and delivered our amazing, modern, comfortable granny flats to over 300 happy customers across the Central Coast region including Newcastle, Lake Macquarie & Hunter Valley.
PROPERTY INVESTORS
Make your investment dreams come true with Acrow. As renowned local granny flat builders, you can trust us to provide high-quality projects starting at $110,000 (ex GST). With a speedy local council approval process taking up to eight weeks and an average build time of ten weeks under optimal weather conditions, you’ll soon be enjoying potential rental returns between $350 -$450 per week, based on averages in the Central Coast area.
FAMILY LIVING SPACE
Is your family growing or extended? You don’t have to leave the home you love in order to create more space. Consider a granny flat – an innovative and stylish solution providing everyone with ample room for comfort! It’s perfect for those wanting separate living quarters, whether it be teenagers ready for their own space or accommodating an elderly relative.
Work with the skilled team at Acrow to design the perfect space for your family.
WHAT’S INCLUDED?
Acrow Homes offers luxurious granny flats with a host of premium standard inclusions, sourced from renowned Australian brands like Colourbond steel, Dulux paints and Weathertex cladding.
The kitchen is equipped with Haier ovens, cooktops and rangehood as well as stone benchtop surfaces to create an attractive modern look. An elegant shower set fitted off by experts along with semi-frameless aluminium screens ensures the bathroom looks contemporary while also being functional. To top it all off our 4-star rated water-efficient toilet suite can add to your savings on utility bills!
We provide all standard inclusions such as LED downlights, a smoke detector, and ceiling fan/light fixtures for each bedroom. Those warm summer nights won’t be an issue either – we install Split System Air Conditioning helping you stay comfortable year-round. You’ll also get luxuries like a clothesline and mailbox to make living easier straight away. Finally, our professional builders will perform a full cleaning of internal areas before handing over those keys – ensuring your new home is ready to move into from day one!
OUR PROCESS
Acrow’s big difference and our advantage over other builders. The process we’ve developed over many years of experience and successful projects to deliver the best home-building project for every customer.
We’ll start by meeting for a consultation to discuss ideas and requirements, then prepare all the paperwork needed for council approval. Then we bring in our construction team who will carefully build your dream with deadlines met every time – no delays here. Our Relationship Management experience guarantees we provide stress-free customer service throughout the entire building experience.
Contact us today
