Ultimate Guide to the Granny Flat
A few years ago, a granny flat was a small room reserved for elderly parents by their family members. This is no longer the case as they have turned into luxurious self-contained dwellings. For most people, a home can become overcrowded as the number of family members keeps growing. But a granny flat offers a win-win scenario where elderly parents have their own quiet space while dad and mum also enjoy their peace of mind in a nearby place. This is where financial planner Gold Coast comes in.
In this blog, we take time to reflect on why a modern granny flat has become such a popular investment option and what people need to know before they venture into this type of investment.
Its popularity is increasingly rising! At Oracle, we always get inquiries from the public regarding granny flats. Many families are becoming concerned about their elderly parents and the need to offer them better accommodation away from the overcrowding and noise of other family members. Additionally, the prices of houses are on the rise and many young adults are unable to pay for mortgages and own homes. Financial planner Gold Coast can help you make the right choice. Below are other reasons why granny flats are becoming popular as an investment option:
1. Increased demand The demand for granny flats has recently increased thanks to young couples, students and singles. Besides, granny flats have also proven to be an affordable and viable housing option for retirees who would like to downsize and are not part of the sea change phenomenon.
2. Lower Costs Another major reason why granny flats are becoming popular is the cost of developing them. It is a lot cheaper to
construct a granny flat compared to purchasing a standalone investment property.
3. It can increase the resale value Adding a granny flat to an existing property has the potential of increasing its value significantly. This can help you attain your return on investment (ROI) much faster than expected. With proper guidance from financial planner Gold Coast, the value of your property can increase within a short time.
4. Depreciation Renting out a granny flat gives you additional claimable on the depreciation schedule.
5. It can help investors build their portfolio Increasing value using a granny flat can significantly raise your capital value as well as rental income. You can use the extra rental income to boost or sustain your ability to service loans. This can also give you a stronger financial muscle to acquire more investment property. As an investor, you should understand Centrelink treatment of granny flat arrangements considering the implications for home ownership, deprivation and estate planning. A granny flat plan can be viewed by some as a more viable option compared to relocation into an Aged Care Facility or retirement village. You should however note that avoiding an Aged Carew Facility entirely may not be possible. Talk to
financial planner Gold Coast and increase the value of your property.