Have you considered building a granny flat with your new home? You may even have enough space of your block to build a granny flat on your existing block to provide additional living space and separate living quarters. Granny flats offer fantastic rental yields while also offering a range of lifestyle benefits. The construction of a fully self contained granny flat with kitchen, living room, bedroom and bathroom facilities can be completed for as little as $85,000 with Dixon Homes.
At Dixon Homes, we have a number of fully contained granny flat designs which can be the perfect solution for many larger families, or families with older kids still living at home. They can also be ideal for older relatives to have their own space while still being connected and supported with the rest of the family. As Australia’s aging population continues to increase, it’s expected that granny flats will continue to be popular. Government projections show single person households are also expected to grow the most of all sectors over the next 20 years, showing the demand is definitely for these dwelling are definitely there. They also help fill a need for affordable accommodation in places like Sydney.
Can I rent out my granny flat separately in Sydney?
Yes! Previously NSW councils had a law where a granny flat or ‘secondary dwelling’ could not be rented out separately in their home. Many people overcome this by subletting privately but were still technically breaking the law which still exists in other states. Thankfully laws have recently changed in Sydney to allow granny flats as a source of rental income. You can rent out both dwelling separately without the owner being required to live in either essentially allowing a double rental yield which is hard to argue with.
How much rental yield can I expect?
A granny flat sized 60 square metre or less will cost under 100,000 to build and like building your own home comes complete with a different amount of inclusions and its own access. When it comes to the amount these can be rented for, it will depend on the area, but expect between 250 in places like Penrith and St Maries, and up to 400 per week in Sydney’s northern beaches and eastern suburbs.
Building Regulations for new Granny Flats
– Cannot be more than 60 square metres in size
– Land must be more than 450 square metres to build on
– One granny flat per block is allowed
– Relevant local council zoning laws apply
– Not permitted on subdivided land.
To find out more about building a granny flat with your new home, or building a granny flat on your existing block and what is possible call Australia’s best value quality new home builders at Dixon Homes on 1300 10 10 10.