Ultimate Guide to The Granny Flat

Ultimate Guide to The Granny Flat

A few years ago, not many people paid attention to granny flats. They were just small rooms set aside by family members for their elderly parents. But things have drastically changed as granny flats are turning into luxurious self-contained dwellings.

As a family grows bigger, many people become concerned about how to accommodate everyone, particularly the elderly. But a granny flat offers a perfect solution where the elderly parents can have a quiet space of their own while mum and dad have peace of mind not far away from them.

In this article, we discuss why modern granny flats have become such a popular investment option and what investors need to consider before venturing into granny flats.

Granny flats are becoming increasingly popular!

At Oracle, we work with many clients on matters of investment. As a financial planner Gold Coast, we have been receiving a lot of questions regarding granny flats. Many people are concerned with the increase of their family members and the need to give their elderly parents quiet and comfortable places to live in.

Here are several other reasons why granny flats are becoming attractive for investors: 1. Strong demand The past few years have seen increased demand for granny apartments from young couples, singles and students. Besides, granny flats have also become an affordable option for those retiring and who would like to downsize. Talking to a financial planner Gold Coast can help you determine if the move you are making is the right one.

2. Lower costs It is a fact that constructing a granny flat is much cheaper compared to purchasing a standalone investment property.

3. Increased resale value Putting up a granny flat to your existing investment property has the potential of increasing its value. This will help you achieve your return on investment (ROI) much faster when you opt to sell off your property.

4. Depreciation Renting granny flats offers investors an opportunity to claim more on their depreciation schedules.

5. A chance to build a portfolio Adding value to a property through a granny flat can significantly increase capital value as well as rental income. You can then use the

extra income from rent to acquire more property and maintain your capacity to service loans. A financial planner Gold Coast can offer more guidance on portfolio building through granny flats.

Lastly, you should understand Centrelink treatment of granny flat arrangements considering the implications of estate planning, homeownership and deprivation. Working with a financial planner Gold Coast can also help in making the right decision.

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