How to boost your property value by 30 per cent in retirement

Font Size:

More than half a million homeowners across Australia’s eastern seaboard have enough space on their property to build a granny flat, which could boost home values by 30 per cent and add around 27 per cent to rental income.

Combined analysis by CoreLogic and Archistar identified 583,440 properties in Sydney, Melbourne and Brisbane that meet the criteria for an additional self-contained unit of at least 60 square metres.

Constructing a two-bedroom granny flat would require an initial investment of around $200,000, while the outlay for a one-bedroom dwelling would be approximately $120,000.

CoreLogic Head of Research, Tim Lawless said: “Building a granny flat is becoming an increasingly compelling proposition for homeowners in a relatively lacklustre market.

“Not only can it help to manufacture new capital gains, but it has the potential to generate rental income while meeting demand for more affordable housing.”

A granny flat typically rents out for less than the price of a standard apartment, making it an attractive and affordable option for renters on a budget.

“Many properties identified as suitable for a granny flat are in densely populated and traditionally expensive areas, such as Sydney’s northern beaches or Hornsby,” Mr Lawless said.

Co-founder of Archistar, Robert Coorey said: “Many home-owners are sitting on a pot of gold in the form of excess land that could be developed to generate a new income stream.

“The family benefits of a secondary residency can’t be overlooked, whether that’s giving adult children more privacy while they save for a mortgage, keeping loved ones close as they become more reliant on care or having additional accommodation for overseas visitors,” he continued.

The building of a second residence on your property or on a family member’s property also opens up the option of entering into a ‘granny flat agreement’.

A ‘granny flat agreement’ is an informal arrangement between a parent and their adult child or children.

The parent (often elderly) contributes the funds to create granny flat accommodation either by modifying a home or by buying a suitable property in the name of the children. In return, they agree to provide the parent with a lifetime right to live in the granny flat, or at least until the parent needs residential care.

Many of these arrangements work out well. The older person can enjoy the love and support of having their family close by as they age.

Do you have room to build a granny flat on your property? Is this something you would consider to open up a new income stream in retirement?

If you enjoy our content, don’t keep it to yourself. Share our free eNews with your friends and encourage them to sign up.

Join YourLifeChoices today
and get this free eBook!

Join
By joining YourLifeChoices you consent that you have read and agree to our Terms & Conditions and Privacy Policy

RELATED LINKS

Home is where the heart is

The majority of older Australians own their homes and have no intention of leaving.

Is maintaining a home really costing you more?

Has owning a home really become more expensive? Matt Grudnoff investigates.

More people are retiring with high mortgage debts. The implications are huge

Implications for physical and mental health ‘huge', say experts.

Written by Ben

6 Comments

Total Comments: 6
  1. 0
    0

    Fix the deeming rates will greatly assist pensioners and part pensioners!

  2. 0
    0

    There is a better way to cut the cost of a granny flat. Buy a transportable home much cheaper and all that has to be done is foundations, plumbing and electricity connection. When the need for the granny flat has passed, the transportable home can be sold to recoup part of the outlay.

  3. 0
    0

    Part of the property here is what I think was the first residence – the garage with room (half demolished) toilet and shower etc. I’ll resurrect it and use it for spare room etc….

    Only gave passing thought to using it for a granny flat etc..

  4. 0
    0

    Dont know how im going to build that granny flat or have a mobile home in my 4th floor flat.

  5. 0
    0

    Tiny houses are cheaper and can be moved if necessary, which also means less problems with council permits.

  6. 0
    0

    If we built a granny flat in our back yard the embicile Barr would take most of the money with his increase in rates on both structures and then add his land tax and other charges there would be nothing left.


FACEBOOK COMMENTS



SPONSORED LINKS

continue reading

Australia

Enthralling, dystopian, sublime: NGV Triennial has a huge 'wow' factor

Refik Anadol: Quantum memories 2020 (render) custom software, quantum computing, generative algorithm with artificial intelligence (AI), real time digital animation...

Australia

Where to eat, drink and play on Kangaroo Island

Australia's third largest island is an oasis of pristine wilderness, premium produce and hidden secrets ripe for discovery. Easily accessible...

COVID-19

Will you need a vaccination to visit Australian venues?

State premiers have suggested that once vaccinations begin in Australia, those without vaccinations may be banned from visiting some venues...

Australia

Enjoy these islands while you can

Remarkable Rocks, Kangaroo Island, South Australia. Greg Brave/Shutterstock Freya Higgins-Desbiolles, University of South Australia I fell for Kangaroo Island from...

New South Wales

Four fabulous events announced for Mardi Gras 2021

Mardi Gras is famous for its world-class comedy, performances, vibrant colours and characters. And this year will be no exception....

Entertainment

Why the royal family retreats to Scotland every year

"To aim for the highest point is not the only way to climb a mountain," wrote Nan Shepherd in her...

Accommodation

The five stages of losing your Airbnb virginity

Airbnb was set up more than a decade ago - first called Air Bed & Breakfast - and now boasts...

COVID-19

Overseas travel remains unlikely this year

As the vaccine rollout in Australia gets closer, many thoughts may be turning to exactly how long we have to...

LOADING MORE ARTICLE...