Since the laws were relaxed a couple of years ago, granny flats have increased in popularity among home renovations in Perth. Under current R-codes that went into effect for WA in October 2013, a granny flat doesn’t have to be occupied by a relative anymore. This has made it feasible and profitable for many homeowners to build a granny flat, now referred to by many as a “Fonzie flat,” and rent it out.
Here are the arguments for and against granny flats.
Why Granny Flats can be the Most Profitable Home Renovations
The first and foremost factor is rental income. A granny flat can add to the income of a rental property or bring extra income for owner-occupiers. It’s nice to have two revenue streams from one rental property. Sometimes, the income from a granny flat can turn a negatively geared property into a property that is positively geared.
A lot of tenants would rather live in a granny flat than an apartment because they allow tenants to have their own buildings but at the cost of a unit. Also, a granny flat provides a source of income for the landlord during times that the main building is vacant.
Why a Granny Flat Might Not Work for You
Due to privacy concerns, a granny flat can affect the way the main house is perceived. That can sometimes result in lower rent for the main house and longer vacancy times.
But the most important factor: a granny flat has to be done right or it can devalue your home. If you are going to build a granny flat, it has to be done by a professional. It has to have the quality and appearance of a house if it is going to provide all of the positive attributes we mentioned above. A DIY granny flat or an inferior granny flat can become a detriment to your property.
Call the Professionals
Call the professionals at Next Level Extensions to make sure your granny flat adds to the value of your home. For a free consult, call us today: 1300 948 094.
