Granny Flats Aren’t Just About Getting Extra Space, They Can Bring Additional Income, Too

Construction of a Granny FlatGranny flats have become increasingly popular in Australia today — and it’s not difficult to see why. Not only could they provide extra living space, but they could also be an additional source of income as a self-contained housing unit for short-term rentals. Housing experts say a granny flat could pay for itself in five to seven years.

But, Who’s Going To Rent a Granny Flat?

Recent statistics from the government show that over 100 granny flats are being built each week in Sydney alone. LA Webb Construction and other premier builders in the country can attest to that, as they receive more second dwelling inquiries nowadays than the past years.

The spike in the trend is due to some factors, including the ageing population in need of care. By the way, the term “granny flat” comes from the fact that most families do not have extra room in their house to accommodate the ageing grandparents, hence, the building of a flat in their backyard. Another factor that drives the trend is that many newlyweds and young adults don’t have enough resources to buy new homes. Instead, they look for a relative with a granny flat to rent out.

A Big Push from the Government

Some legislative changes in the states of NSW, NT, WA, and TAS have also encouraged homeowners to build a second dwelling, such as granny flats, in their land. With the rising prices of homes in Australia, the government is looking for ways to generate a supply of affordable housing. Most of the states have crossed out the rule that says only family members of the primary dwelling are allowed to occupy the ancillary dwelling. This means granny flats and other second dwellings can now be rented out to any person, including non-family members. In addition, some states provide tax benefits for anyone who has built a second home.

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With the benefits of building a granny flat, it is no wonder that more and more Australians are hopping into this trend. But, here’s a little reminder for anyone planning to build one: start by calling your local council and ask information about other dwellings because as mentioned above, regulatory laws vary from state to state.