Throughout Australia, granny flats have proven to be a real estate investment strategy. With proper execution, significant profits can be reaped from this kind of investment. Yes, the profit will depend on other factors such as the location of the granny flat and the demand for housing facilities in an area, but there are plenty to be gained still. When it comes to the granny flats Melbourne outlook, for example, you can reap somewhere between 8%-11% of profits. With that in mind, this is one great option for families looking forward to an expanded income source. Granny flats also offer a solution to the demand for low-cost and/or temporary housing in the market.
Granny flats can be converted garages or a few rooms that have separate entrances. There are also portable granny flats that can be towed or moved to any appropriate spot. Once you decide to have one, below are important elements that you need to firmly keep in mind.
Know how the game is played
Just like in any other venture, you should not go into any granny flats Melbourne investment blindly. You will need to do your research to assess the validity of a granny flat on your property and in the suburb that you live in. One good way to go about this is to contact your local council. Find out about the zoning restrictions for granny flats in Melbourne, as well as the considerations on frontage and distance requirements, if any.
When supply exceeds demand, there will be wastages. If you are a serious real estate investor or just someone who desires to have that extra income, you will need to do your market assessment properly. If there are numerous options of accommodations that are affordable in the area, there would be no need for you to supply this kind of service. Unless you have something special to offer. So, do research on the kind of rentals that tenants are looking for in your area. This way, yours will stand out among other Melbourne granny flats and you can structure your unit in a way that it truly appeals to potential tenants.
Know the regulations that govern these flats
There are general regulations that govern granny flats Melbourne wide and must be abided by. First, is the fact that they can only be built on a residential zone property. Also, you can only have one granny flat per residential property. They also need to have an independent entrance and be self-contained as well, which means they must have their own bathroom and kitchen. Additionally, you have to be the primary owner of the property before you consider building a granny flat on it. More info at Van Homes.
Before you buy granny flats in Melbourne or construct one, you have to make certain that you have clearly assessed your budget. Consider all technical impacts before moving forward. Your budget has to be realistic so that when you rent the place out, it will be affordable enough to attract many potential tenants, while still earning you a profit. Also, it’s very fundamental that you get a specialist for construction as they have the experience to do a really good job.
Overall, granny flat investing has lots of merits. All you need to do is make sure you do your research in order to make wise decisions.