The Pros and Cons of Granny Flats

Tiny wooden house on bench with child in the background

The Pros and Cons of Granny Flats

Deciding to build a granny flat has so many benefits and the process is only getting easier. In New South Wales, the Government has introduced a range of incentives to encourage homeowners to invest in affordable living like granny flats. So if you have an empty space in your backyard, now might be the time to invest. You can use a granny flat to house family members, enhance liveability, or you can rent it out to tenants.

If you’re still undecided about a second dwelling for your home, take a think about the pros and cons of building a granny flat.

Here are some of the main advantages and disadvantages that you might encounter.

Pros of Granny Flats

Independence for Family

 Building a granny flat is a great investment in intergenerational living. Whether it’s housing a young adult or your parents and grandparents, a granny flat lets you keep your loved ones close by. This is a great way to keep your family together and keep an eye on frail relatives.

Togetherness isn’t the only thing granny flats provide. They offer a great sense of independence too. No matter who lives in the granny flat, they will have their own sense of space and you can enjoy having your own area in the main house too.

  1. Increase the Value of Your Property

A granny flat won’t just keep you close to your parents, grandparents or children; it’s also a great way to increase the resale value of your home.

A granny flat on your property is an asset and their popularity is only increasing. When it comes time to sell, a second dwelling is your selling point, helping to add value to your property and experience a return on your investment.

  1. Another Source of Income

Renting out your granny flat is an easy, inbuilt source of income. The rental payments you receive from your flat will be the closest thing to having a money tree in your backyard!

In addition, the maintenance and upkeep of a granny flat, especially a new one, is minimal compared to other types of rental and investment properties.

Cons of Granny Flats

  1. Surprise Costs

While it’s becoming more affordable to build granny flats, you should be prepared to budget for more than you expected. Any construction project can have hidden costs and granny flats are no different.

  1. Undesirable Tenants

Having bad tenants is always difficult, but it only gets harder when they’re living in your backyard. As a landlord of other properties, you usually wouldn’t have to deal with the tenants on such a personal level. This makes finding suitable tenants for your flat absolutely essential.

  1. You Can’t Subdivide

 In the state of NSW, you can’t build a granny flat if your property is subdivided. That means that once you build a granny flat, you won’t be able to subdivide.

 If you’ve weighed the pros and cons and are ready to build, don’t hesitate to get in touch with Rescon Builders. Contact us for a free site visit and to learn about our process.