A granny’s flat is an extra apartment added to the main building itself. The addition of a granny flat can be an awesome option for a numerous number of reasons. Many people living in rural areas are taking advantage of the extra space and using them as a home for aging parents.
However, granny flats are allowing more homeowners to become property investors and make extra money from the additional space. The owners may either live in the granny flat or rent out the main building to gain a bigger source of rental return or rent the granny apartment to supplement income through its rent. There are facts you need to note down before setting up a granny apartment.
Cost can Increase Beyond Expectation
This is expected from any new building, but with a granny house, there are some important things you need to note down. You may save cost by using the land you already own, but there will be cost involved with planning and council permit. Be conscious of how connecting to services such as stormwater, sewerage and electricity will impact upon your bills and how you will handle this.
If you are considering renting out your granny flat or existing home in places such as the Jade Ocean Condos, you may consider the use of a property manager.
This is the best approach given that you will be living very close to your tenants and you definitely want to be able to keep away from the day to day management itself.
Account for Periods of Vacancy
As with any investment property, it’s always a good idea to allow for periods of vacancy when doing your cash flow analysis as the general rule allows for at least two weeks of vacancy per year.
If you are unable to manage the additional mortgage cost that a granny flat will bring, it may be a good idea to wait.
If you do use either or even both properties as an investment rather than for your family alone, a granny flat is a great source for additional income. Especially with a newly built property, there is likely to be fewer maintenance issues for the first few years at least.
An extra $300 plus per week can lead to quite a huge amount paid off a mortgage at the end of the year.
This extra income brings you many options in terms of finances that may otherwise not have been available.
Boosts Re-sale Value
A well-built granny flat can boost the resale value of a home like Sunny Isles Beach Real Estate and Jade Signature Condos simply due to the potential it brings. It offers additional living space, work from home space and of course potential income through renting the flat out.