These days many investors are turning to granny flats as a valuable addition to their financial portfolios.
There are many arguments to suggest that granny flats are a sound investment option:
- Granny flats, when rented out, offer an opportunity for generating positive cash flow from your property. Commonly rented for $350 per week, a $130,000 granny flat would expect to generate over $18,000 per annum - that is an annual rental yield of 14%.
- Adding a granny flat to your existing property can increase the value of your own home, with possible higher returns on resale.
- As an investment, adding a granny flat requires a relatively low investment input, in comparison to purchasing a separate stand alone investment property.
- A short construction time of auround 10 weeks means that your granny flat could be generating income for you in a short time.
- The NSW government has supported granny flat construction as a part of the Affordable Housing Scheme as a viable answer to providing much needed rental spaces. Due to the continuing high rental demands in the current housing market, a stable rental income stream should be expected in most areas.
At Aspect Z we encourage you to speak with your own financial planner and local real estate experts to decide if a granny flat would suit your individual investment portfolio.