Common Granny Flat Myths

Here are a few of the myths we hear about Granny Flats:

A Granny Flat will reduce the value of my property

Adding a granny flat to your property in Sydney has the potential to increase its value. Here's why a granny flat can add value to your property:

  1. Increased Rental Income: A granny flat provides an additional dwelling on your property, which allows you to generate rental income. Sydney has a high demand for rental properties, and the presence of a granny flat can attract tenants seeking affordable and independent living options. The rental income generated from the granny flat can contribute to the overall value of your property.

  2. Potential for Dual Occupancy: A granny flat allows for dual occupancy on a single property, which can be a valuable feature. It provides flexibility for families looking to accommodate extended family members or homeowners who want separate living spaces for various purposes. This added versatility can make your property more appealing to potential buyers and potentially increase its value.

  3. Expanding the Living Space: A well-designed and functional granny flat can add valuable living space to your property. This can be particularly beneficial in areas where space is limited, such as in densely populated cities like Sydney. The extra living space can enhance the overall desirability and functionality of the property, making it more attractive to buyers.

  4. Potential for Multigenerational Living: Sydney, like many other cities, has seen an increase in multigenerational living arrangements, where multiple generations of a family live together. A granny flat provides a separate living space that can accommodate elderly parents, adult children, or extended family members, promoting privacy and independence. This feature can be highly sought after and add value to your property.

  5. Positive Return on Investment: If the cost of constructing or renovating a granny flat is reasonable compared to the potential increase in property value, you can achieve a positive return on investment. While the exact impact on property value may vary depending on factors such as location, size, and quality of the granny flat, the added functionality and income potential can contribute to the overall value of your property.

It's important to note that the extent to which a granny flat adds value to your property can depend on various factors, including the local market conditions, buyer preferences, and the quality of the granny flat itself. Consulting with local real estate professionals and conducting a comparative analysis of property values in your area can provide more specific insights into the potential value increase you can expect from adding a granny flat.

It’s better to renovate your own home than build a Granny Flat

Living with renovations is never fun. Its dusty, dirty, noisy and disruptive. By building a Granny Flat separate to your own home, you can avoid the majority of this disruption, and you can even use the Granny Flat as a temporary residence for yourself if you do decide to continue with renovations to your primary house.

You should also compare the costs of renovation versus building a new granny flat. While renovating might appear less expensive upfront, it can come with unexpected costs if extensive repairs or structural modifications are required. Building a new granny flat provides greater cost certainty, as you have better control over the construction and can factor in all the necessary expenses from the beginning.

Another factor is the potential rental income. You should assess the rental income potential of a renovated space versus a new granny flat. In many cases, a purpose-built granny flat will attract higher rental income due to its modern design and separate amenities. This can potentially offer a better return on investment over the long term.

Finally, consider the affect of both on your property value. Building a granny flat can increase the overall value of your property, potentially attracting a larger pool of buyers if you decide to sell in the future. Renovating an existing space may not have the same impact on property value.

I can’t afford a Granny Flat

If you have equity in your existing home, you may be surprised at how little upfront investment you require if you are able to use finance options to fund the construction of your Granny Flat.

Consider the potential return on investment (ROI) that a granny flat may provide. Assess the rental income you can generate from the granny flat and how it may contribute to your financial situation. Additionally, consider the potential increase in property value and the long-term benefits it may offer.

It is advisable to consult with financial advisors, mortgage brokers, or accountants who can provide personalized guidance based on your specific financial circumstances. They can assess your affordability, discuss financing options, and help you make an informed decision.

Granny Flats are ugly boxes in backyards

If this is your opinion, you havent seen our Gallery.

We pride ourselves on design which fits in with the existing property and your lifestyle. Our quality construction and inclusions add value rather than de-valuing your property.