What adds 30 per cent value to your property?

Analysis conducted by CoreLogic has founded that properties with a granny flat could boost home values by 30 per cent and add around 27 per cent to rental income.

More than half a million home owners on Australia’s eastern seaboard acquire enough space on their property, or a “gold mine” as experts like to call it, to add a granny flat dwelling. The granny flat has the ability to generate an extra income stream or provide a more private secondary residence for family.

According to the research from CoreLogic, building a one-bedroom self-contained unit costs about $120,000 and a two-bedroom – about $200,000.

Granny flats have been popular amongst parents wanting to provide a space for adult children to live while they save for a house deposit. Another major drawcard for the humble granny flat is allowing elderly parents to live close by while retaining independence.

Typically, granny flats rent cheaper than apartments, making them a desirable living option. With the popularity of AirBnb, homeowners have been (and could be) capitalising by offering short-term accommodation to holiday makers or those away for work. Granny flats allow young people to stay in their preferred area affordably, rather than moving away to find value for money.

But, in Queensland, different councils have different rules. In some areas, granny flats cannot be rented out. The person/s living in the secondary dwelling need to be a dependent person/s – children or older relatives (for example) who rely on the person/s living in the primary property. For example, if a granny flat within the Brisbane City Council jurisdiction is to be rented out to someone who doesn’t form part of the household, a dual occupancy will need to be lodged. A household can be:

·      one person maintaining a household

·      two or more people related by blood, marriage or adoption

·      up to five children under the age of 18 that are not related and one or two adults who care for them

·      no more than five people that are not related

To know whether or not you can rent out your granny flat, head to your council’s website or get in contact with them to find out.

If building a granny flat, it’s important to obtain correct council approval. Getting the council to approve the building of a granny flat is relatively easy but it’s very important to triple check. Things like the size of your block and how close it’s built to a fence matter.

Speaking to a knowledgeable real estate agent in your area to find out how much value a granny flat could add to your property and its potential rental return is worthwhile if it’s something you have been considering.