House prices in Wollongong have risen dramatically. According to domain.com.au, house prices have risen $100,000 in the 2016 calendar year, a growth of 16.7 per cent. It is expected that the growth is a result of high Sydney prices, causing Sydney-based investors and homeowners to search for more affordable options.
Property investment experts now view Wollongong as a prime growth area. PropertyBuyer Managing Director Rich Harvey, points to relative affordability, market growth, and the ability to add a Sydney granny flat to obtain additional rental income as a key drawcard for investors and homeowners in Wollongong. The CEO of Raine & Horne states that properties are selling for a significant premium when they have a granny flat attached.
Granny flats can also yield a cash-positive return on investment through rental income. According to domain.com.au, the population of Wollongong is comprised of 66% singles, with 60% of residents renting. With a significant local university and a vibrant beachside lifestyle, Wollongong is a great option for rental investments. In Wollongong, a good granny flat can rent for $250 – $400 per week.
Match this opportunity with the ease of adding a granny flat to your home. Not only can you expect to get returns on a cash-positive investment, you can usually get a construction or equity loan quite easily. Banks and financial institutions generally love granny flats because the homeowner already has equity in the property, and the repayments should be less than the rent earned.
Whether you’re looking to add rental income, or to increase the sale value of your home, now is a great time to capitalise on market growth by adding a granny flat to your Wollongong property!