Granny Flat Rents in Australia on the Rise: A Look into This Growing Trend Classic Granny Flats 37 Winton Road Joondalup, WA 6027 9301 2122
The interest on the humble one-room granny flat continues to increase in Australia. This, however, has prompted some landlords to charge a higher rent. A number of reports show that property owners in popular suburbs can get a rental yield of up to 15% on granny flats. As the country’s population grows, the supply of affordable housing is running out fast. This is the reason more and more families are getting creative and using their backyards to build a rental home.
The Strong Rental Demand In Sydney, for instance, the weekly asking rent has increased by 5.95%. This figure was higher by 1% than apartments and around 3.9% than houses. Those wanting to rent a granny flat in Perth, on the other hand, should expect to pay an average of $251.25 every week. The rental price for the tiny dwelling in Perth remains flat over the year.
Industry professionals explain that the low number of first-time homebuyers, a steady level of migration and a tight rental market are behind the increase in weekly rent. Some families find it difficult to keep up with the demand for rental accommodation. The Factor Driving the Rise The emergence of granny flats as a solution to have a temporary home was because of the cost of living in the country. In New South Wales alone, recent statistics revealed that around 4,818 granny flats were built a year ago – almost two times higher than the 2,867 built in 2013. According to News.com.au, “The humble granny flat has come a long way from its days as a quick garage or shed conversion. These days, it’s not uncommon to find granny flats so lavishly built they could pass as a standard home. In the last five years, their popularity has skyrocketed as homeowners capitalise on their properties for investment or accommodating a family.” Building a granny flat is a great idea for those wanting to maximise their income. But it is not without its risks and challenges. A granny flat can offer rent-generating options, but one must fully understand how the market works.
Resources:
http://www.news.com.au/finance/real-estate/house-prices-ignite-boominnbspgranny-flats-across-nsw/story-fnd91nhy-1227323305919
http://www.classicgrannyflatswa.com.au/our-range/
http://www.afr.com/personal-finance/granny-flats-a-gold-mine-but-beware-therisks-20150313-143i7c