Your home is the pride and joy of your family. A culmination of your financial efforts, a testament to your spirit, and an insurance policy in case of financial difficulties. However, as is the case for many Sydney residents, your dwelling may nowadays be far too small for the growing requirements of your loved ones.
Did your children grow up and need extra space for their hobbies and personal pursuits? Have you started a new job that entails working from home? Does your wife want to benefit from a separate space for artistic activities? Then, you’ll either have to invest in a new property or try to expand the space you have at your disposal.
A bigger home may be the perfect solution for your family’s needs. However, there is a problem. The real estate market in Australia has reached record highs, and for most Aussie families, finding a suitable property at a reasonable price is futile.
Are you looking for a practical solution that will contribute positively to your household’s long-term finances? Do you lack the necessary income to scour the Australian housing market? In that case, a practical and versatile solution suitable for your family’s demands could be granny flat builders.
What Are the Financial Advantages of ADUs?
First, accessory dwelling units, when built with the help of granny flat builders, can be constructions you can rent at favourable rates. In NSW, the average rent for newly-built properties is around $745 per week, a daunting sum for many Aussie families.
Moreover, Australia is facing a shortage of affordable housing that shows no signs of improving anytime soon. But, this can provide opportunities if you are willing to invest in a granny flat.
Let’s say you used the services of a house and granny flat builder in Sydney to construct an ADU for $145,000. If you rent out the unit for $600 per week and obtain an occupancy rate of 90% per year, your total annual rental income will be around $28,000.
In other words, you will recoup your investment in just five years. Granny flats add an average of around 30% to the value of market-listed dwellings. Let’s say your property is priced at the median value of Sydney homes. So, at around $1.6 million.
A 30% boost in real-estate value will translate to $480,000. Since your investment in the ADU was only $145,000, you will automatically record a profit of no less than $335,000. Homes with ADUs are in demand because they are secure financial investments that can diversify owners’ income streams.
When built by granny flat builders, ADUs can improve the real estate value of your property, be used as rentals, and give you the necessary space for your daily activities. In other words, they are one of the most positive investments you can make.
What About the Practical Benefits?
Australia is falling behind in building new affordable properties. So, granny flats, at least for the moment, represent some of the safest financial bets you can make. However, the upsides of ADUs are not just economic.
Are your parents getting older and starting to experience difficulties in carrying out their daily activities? Do you want to ensure they spend their retirement safely while still giving them the independence they deserve? Then, as the name says, granny flats can be perfect for their housing.
ADUs can provide a private space for your ageing parents or visiting relatives or offer privacy to your grown-up children until they can find separate accommodation at a favourable price. In addition, an ADU built with the help of a house and granny flat builder can be used both for hosting your friends and as extra storage space.
Over the years, has your home become impractical for items you purchased? Do you want a place to store your belongings, or do you require a room that you can transform into a gym, office or gaming space? Then, you can’t find a more cost-efficient option than a granny flat.
What Are the Regulations for Building an ADU?
In NSW, granny flats must be constructed adjacent to a principal property on a lot of land zoned for residential use. ADUs cannot be built on lots less than 450 square meters in size, while their maximum interior space cannot exceed 60 square meters.
Granny flats are not secondary houses but, as the name says, accessory dwellings that can only extend the usable square footage of your main household. Under NSW law, only one granny flat can be built per lot, and its maximum height cannot exceed 8.5 meters.
Also, all ADUs must have access to courtyard space and keep a setback of three meters from the back end of your principal property. As for the necessary documentation, the approval process for NSW granny flats has been simplified with adopting the State Environmental Planning Policy of July 2009. To construct your ADU, the granny flat builders to whom you appeal will need to apply for either a CDC or a DA.
If your building plan respects the SEPP requirements, then the CDC approval should arrive in less than twenty days, and you will not require council consent. However, the DA application might take significantly longer if you don’t qualify for a CDC.
The ADU constructed by the house and granny flat builder will also have to comply with the BCA and, if you plan to rent it out, be connected to utilities. Overall, the required regulations for the construction of ADUs are more straightforward than those for duplex units or new housing projects. So, the development of granny flats has accelerated significantly in recent years.
One of Your Most Astute Choices
Accessory dwelling units are a simple and efficient way to earn the extra square footage needed for your daily activities. In addition, ADUs, when built with the help of a house and granny flat builder in Sydney, can provide a stable and predictable income that will contribute to the long-term economic security of your children. Granny flats can be rented out for significant returns, be extra storage rooms for your necessities, or, as the name suggests, represent a way to house your elderly relatives.
When designed by granny flat builders, qualitative ADUs are not only constructions that can make a decisive contribution to your family’s finances but can also represent a mirror of your personality. Granny flats can be customised according to your subjective preferences and used in accordance with your family’s necessities.
Have you always wanted a home gym? Do your children need a separate gaming room? Was your wife thinking about a yoga studio? If so, granny flats can transform your vision into reality and help you benefit from the supplementary space required for your daily activities.
