Adding a granny flat to your home can be an excellent way to increase its value as well as providing you with an additional income stream in the form of rent. What attracts so many homeowners to the idea of building a self-contained extension or separate dwelling that qualifies as a granny flat is the fact that development approval can normally be obtained within two to three weeks. The proposed building work can be certified by a local council representative as complying with relevant regulations, without the need to submit a formal development application.
Will my project qualify as a Granny Flat?
If you would like to build a granny flat, either for the purpose of increasing the value of your home and generating an extra income or to house an ageing relative, you should be aware that in order to qualify for express approval, it needs to be one of the following:
• An Extension – Whether on the ground or upper floors, an extension that is attached to a residential property could qualify as a granny flat.
• A Conversion – It is possible to convert an existing space in your home into a granny flat, as long as the conversion results in a space that is fit for human habitation.
• A Separate Dwelling – If it is built on the same land as the main property, a separate dwelling could also be considered as meeting the qualifications.
It is important to note that in all cases, the property to which the granny flat is being added must be in a residential zone. Furthermore, you can only build one flat on each property that you own. If you own a number of properties, the potential for rental income could be significant and even if you only own the one in which you live, you still have plenty to gain from adding a granny flat to it.
Putting your plans into action
Once you have obtained approval from the local council, you need to think about financing. You can find out roughly how much you may need to borrow by consulting local building firms or estate agents, after which you can approach your bank or building society with a view to obtaining preliminary approval for the amount in question. With the finance in place, your next task will be to find a building firm that is capable of carrying out the necessary work for a competitive price. There are a number of companies that specialise in granny flats and they are well worth considering if you want to avoid any unnecessary hassles.
Reaping the rewards
Assuming that you are adding a granny flat for the purpose of generating a rental income, the final step you will need to take is to find suitable tenants. A reputable agent can help with this and, depending on exactly where you live, you can look forward to receiving an annual income anywhere from $5,000 to $20,000 or more. The nearer to a city centre you are, the more you can expect to make.