Australia’s Property Boom Spurs Interest in ‘Granny Flats’ Classic Granny Flats 37 Winton Road, Joondalup, WA 6027 (08) 9301 2122 Et Sodales Ac Dolorem Amet suspendisse, nulla fusce praesentium venenatis ut iaculis, quis ut nec aliquet, ut ut, eleifend expedita conubia vestibulum in. Vel nonummy corporis dictumst, in phasellus integer neque proin sollicitudin. Egestas ac nulla eu urna in, amet pharetra tristique mattis ultricies, erat eu maecenas. Ac arcu, justo sagittis varius. Et sodales ac dolorem facilisi turpis suspendisse, ornare dolor ut mauris, nostra sed quam, a cras. Adipiscing in, urna sem sit veniam viverra. Justo suspendisse vel
As
Australia
suffers
through
an
affordable
housing
scarcity,
homeowners are turning to the country’s latest mark of a booming housing market: granny flats. In lieu of manicured lawns, trampolines and flowerbeds, tiny detached dwellings — sometimes referred to as in-law suites or mother-in-law apartments — are being built instead.
What the Building Boom Costs With the building boom already at its peak, Australia is looking at an oversupplied market within three years and a mild oversupply by 2018. While it is a good economic forecast, a debate on housing affordability comes into question. Despite capital cities experiencing the current boom in activity, homeownership
is
gradually
becoming
Australians. In fact, rent and house prices have been steadily increasing since June last year. Even cheaper houses start at an upward rate of AUD$800,000 (US$624,000). In fact, according to a recent study, Australia is the third most expensive place in the world to buy a house. Belgium and Canada are the most expensive. On Affordability Still
in
line
affordability,
with new
the
debate
numbers
on
housing
reveal
that
population growth is finally slowing down while construction activity remains strong. This could mean that new supply will soon begin to outpace demand. Toward outpacing demand and coping with the challenges of the absurdly expensive houses is the rise of Australia’s newest interest, the granny flats.
out
of
reach
for
majority
of
Other than the simplicity of being built in the backyard, interest rates for granny flats have been cut to as low as 2.25%. This allows more homeowners to build a second small home in their yard where aging parents can live independently or a backyard apartment to rent out. Due to the low interest rates, granny flat construction prices and finance is also becoming very affordable and readily available.
References: Classic Granny Flats WA - http://classicgrannyflatswa.com.au WSJ - http://www.wsj.com/articles/australias-property-boom-spurs-interest-ingranny-flats-1423593357 The Australian - http://www.theaustralian.com.au/business/property/housingmarket-will-be-oversupplied-now-building-has-peaked/story-fn9656lz1227448171566 The Guardian http://www.theguardian.com/business/grogonomics/2014/jun/12/why-australiathird-most-expensive-houses