Thinking ‘renovations’ to add value to your home? A stylish granny flat construction could be the best investment you make in 2021.
When you’re thinking about renovating to add value to your property, most homeowners and ‘mum and dad’ investors go with improving the big-ticket areas such as kitchens or bathrooms. While upgrading these areas is the right move if they are already in poor condition, the rule of thumb is that – best case – they add about $2 for every $1 spent.
In contrast, a granny flat can add 30 percent increase on your existing property value, according to a combined report by property analytics firms CoreLogic and Archistar. “Building a granny flat is becoming an increasingly compelling proposition for homeowners in a relatively lacklustre market. Not only can it help to manufacture new capital gains, but it has the potential to generate rental income while meeting demand for more affordable housing.” CoreLogic Head of Research, Tim Lawless
A granny flat construction is a big decision and won’t suit every property. However, they are becoming increasingly popular with residents of the Central Coast and surrounding coastal areas as a way to turn that unused area of your backyard into a multi-functional space. Whether that’s a spare room, young adult refuge, an extra income via a long-term renter, or vacation rental, the possibilities are endless.
We covered in an earlier post how granny flats make a great investment from the perspective of rental return. And on average, a granny flat does add value to a property in the long term. However, where you choose to build your granny flat, and the quality of its construction will have an enormous bearing on how much equity you will add to your property.
Will a Granny Flat add to the Value of my House?
The amount of value you can expect a granny flat to add to your home depends on your property and the type of granny flat you plan to build. A few things to keep in mind:
Make use of the space you have
While a granny flat will take up a decent amount of outdoor space (our constructions are 60 square meters), be sure not to use every bit of green space you have. Maintaining a sense that there is still a backyard or green area, is important.
Consider the aspect
If you plan to build your granny flat close to your main house, it’s important to consider where the windows will face. If your house looks into your granny flat’s windows, or vice versa, it will decrease privacy and may even have a negative effect on your property’s value.
A quality granny flat construction is paramount
It’s important to choose the right builder. Poorly located or constructed granny flats may not attract a quality tenant or add much to the value of your home when it’s time to sell. A well-designed granny flat should complement the overall look and feel of your main house.
With 35 years of experience in the construction and building industry on the Central Coast, we know what works and can advise you on the best granny flat construction to increase the value of your home. Whatever your plans, we love to help our clients bring their vision to life. Get in touch today for a consultation or to find out more.