A granny flat is a secondary dwelling on your property which is compact and functional. Today, granny flats are made with stylish modern design features and are a great return on investment. Years ago, the purpose of granny flats was to allow extended families to live together.
Today, granny flats are still used for members of family to stay in, for visitors and as a secondary source of income. If you’re thinking of building a custom granny flat, there are many benefits that will make it worth your while.
Accommodate a Growing Family
As your family grows and older generations get more frail, a granny flat helps you keep family close. Parents or grandparents may need extra care as they age and having them within easy reach to check on is invaluable. Maybe your kids will want more space and until they’re ready to strike out on their own, a granny flat is a place to stay and enjoy a bit of independence.
Extra Rental Income
Getting extra rental income from your granny flat is a top benefit. Everyone can do with extra cash and a granny flat could bring you in monthly passive income. Rent out your granny flat and you could make an extra $350 a week or more, depending on its size. If you don’t want to rent it out full time, it’s possible to rent it our part time on platforms like Airbnb.
Increased Tax Depreciation
When you rent out your granny flat, you’ll get tax depreciation on the structure. After the granny flat is constructed, you can offset your tax payments by making a claim. Keep a record of construction costs and any expenses that could be tax deductible.
Add Value to Your Property
A huge benefit of building a granny flat is that it increases the value of your home. Talk with a local estate agent who will advise on the extra value your granny flat has given to your property.
Assist with Mortgage Repayments
Increased interest rates and tougher lending policies by banks are becoming more common. Home loans are increasingly harder to maintain for many Australians. Granny flats are a lot cheaper to build than buying a new investment property, but can bring in the same rental income. Once you have your granny flat built, the extra rental income helps to alleviate the pressure of mortgage repayments.
Contact AGS Commercial for custom built sheds, granny flats and commercial sheds in the Northern Rivers.