You might’ve noticed that it’s becoming very popular for people to build granny flats behind or beside their existing home. The main reason is because house prices have doubled in Sydney over the past eight years, leaving homeowners with the ability to refinance their home to build a granny flat.
Here are three reasons you should build a granny flat at the same time as your new home and not wait for the next market rise.
Reason 1: Save money
This is particularly applicable if you want your granny flat to have a slab foundation. Adding an average granny flat to the build of your new home will cost you around $75k to $100k but building the same granny flat on its own can cost upwards of $130k. Building the granny flat at the same time means that you save money in several ways.
Firstly, you only need to complete one application for the whole development. If you decide to build the granny flat later, it’ll mean paying and waiting for a complete second application. If you fully intend on building the granny flat, it’s more efficient and economical to simply apply to build both in the same application.
Secondly, it costs the builder less to build the granny flat at the same time and they do pass that saving onto you. This has a lot to do with the costs of getting materials delivered. The suppliers deliver the materials for both the granny flat and the home at the same time saving them and more importantly you thousands of dollars.
Reason 2: Site access
Once you’ve built your main home, there’s often restricted access to the area where you plan on putting the granny flat. There may still be a footpath and you might even have a driveway, but there may not be great access for bulky deliveries. This can add time to the build and might add different costs like crane hire, traffic control, and additional wages for the extra time the trades are required on site. These additional costs can be avoided if the new home is being built at the same time.
Reason 3: Investment
Granny flats can be a great source of income! Renting in Sydney is very common in the current climate. A two-bedroom granny flat can bring in upwards of $300 per week. Building it with your main home means that you can get some renters in just weeks after you move in yourself. The return on investment is often very good and may be a great way to offset some mortgage stress.
Whether you’re thinking of building a granny flat for family to live in or as an investment, it’s more economical to build the granny flat at the same time as your main home. Not only does it save you money but you can reap the reward of rental income sooner.
For more ways to add value to your home take a look at these garden upgrades that’ll add value, five of the best investments you can make for your home and three ways to add value to your home.