Browse Forums Increasing Home Value 1 Nov 10, 2016 12:48 pm Granny Flats are a very positive investment that can both increase the value of your property & help service the loan on an investment property. Granny Flats can increase the value on the property by adding another dwelling (Secondary Dwelling) on the land, in essence allowing dual rent from both the primary & secondary dwelling, which in the eyes of a potential buyer, is very attractive. For home owners who are looking for holding on to the property for long term, a Granny Flat is able to service the debt and in some cases, is able to allow the property to be positively geared. lets say you have property loan for $1M, which is not impossible in Sydney's current property market. The current rough repayments on a 90% loan at 5% interest will be around the $900 per week, the rental return from the property will average around $650 per week, this means you will be paying out $330 per week to service the loan. Now lets add a Granny Flat to the equation. Granny Flat construction can cost around $100,000, which you can add to the loan of the mortgage, so now the total debt is $1.1M which will also increase the mortgage repayments to $970 per week, this may seem scary at first, but we haven't added the Granny Flats rent to this yet. The rent from a Granny Flat can average out to around $450 for a property worth $1M, so that means the rental return on the property will be around $1,100 per week, while the loan repayments are $970 per week, this in essence puts $130 back into your pocket per week. So as you can see, a Granny Flat can be both a good short/long term investment that can be beneficial to adding value to your property and help service the loan. Serge Panayi Business Manager - Principal Granny Flat Approvals Granny Flat Designs Granny Flat Builders Ph: (02) 9785 2781 http://www.grannyflatapprovals.com.au/ sales@grannyflatapprovals.com.au Re: Increasing value & Securing your property with a Granny 2Feb 07, 2017 1:09 pm I've actually heard a lot of good things about the secondary suite option when you've got a house. I mean when you've got a storage shed or some extra space on your property, why not create an extra living or bed room? If you're not going to rent it out, you can still use it as a nice guest house when you have out of towners come in for a holiday! Just make sure that you have a good security system for the main house if you're worried about your tenants! Re: Increasing value & Securing your property with a Granny 3Mar 21, 2017 11:57 am Hi Cameron, You are absolutely correct. Both for increasing the property value or helping on a mortgage, utilizing some "dead space" at the rear of the yard or converting an existing ancillary structure you can add some income for an affordable price. Serge Panayi Business Manager - Principal Granny Flat Approvals Granny Flat Designs Granny Flat Builders Ph: (02) 9785 2781 http://www.grannyflatapprovals.com.au/ sales@grannyflatapprovals.com.au Re: Increasing value & Securing your property with a Granny 4Jun 02, 2017 7:36 am It would really help even if the monthly additional income is not that high. Nevertheless, any amount would contribute greatly especially if you are having financial difficulties managing your mortgage. Furthermore, it increases the value of your home so in future should you ever need to sell it off, chances of it getting off the market is higher. This is considered an early investment for your home which can benefit you along the way in few more years to come. Re: Increasing value & Securing your property with a Granny 5Sep 04, 2017 3:48 pm I think that it's also important to make sure that you're following your council rules and regulations too though. I've heard recently that you can't just go about increasing the liveable floor space on your property so best check out how you can go about to build an extra structure on your property before you actually go about to do so. Don't get into trouble just because you'll be able to rent things out after you're done building! I would suggest you simply go and talk to council about your proposal, most councils are getting onboard with ancillary dwellings. There is no benefit in keeping it… 1 4162 I think I know the answer but just checking to see if anyone has had experience with it. I want to build a small 20 square metre retreat in my backyard, it will have a… 0 13985 Any advice on how to ensure the kit home granny flat that im thinking of buying will get council approval. The kit home companys wont release plans without a deposit and… 0 7283 |