Building a granny flat in your backyard can be a great way to provide a home for your elderly family members, or a starting point for your kids who want to become a bit more independent and, thus, need a bit more privacy. Moreover, it can also be a way for you to increase the value of your home, which can definitely come in handy if you’re planning on selling it in the future. With that in mind, here’s how you can increase the overall value of your property by adding a granny flat.
If you’re not using your granny flat to provide a home for any of your family members, you can earn some money by renting it out. Plus, even if your property is not entirely paid off, by renting it out, you could still make a profit. And if it is paid off, you could use the rent money for anything you need, whether it is a school tuition for your kids or your next summer vacation. Finally, depending on the size and the features you introduce into the flat, you might even be able to rent it out to more than one person, which means that you’d earn more as well.
The resale value
Nowadays, in the world of real estate, it’s important that your property has everything a potential buyer might need or want. So, by adding a granny flat, you’re not only increasing the amount of room on your property but also the amount of potential. Your property will become more interesting to potential buyers because they will see many different ways of fitting that extra space into what they are looking for; they might need it for their family members, or they might want to rent it themselves. Or, they might just want to turn it into a room for their business or hobbies.
Regardless of how big or small your granny flat is if it is poorly constructed, it is less likely to bring you a good ROI. Your goal should be to build something that can bring you both profit and value, which is why you need to think about the quality of the building material, furniture, paint job, and all the other little details. In other words, don’t be afraid of investing a bit extra in order to build a good granny flat. With that in mind, there are many professional granny flat builders that will make sure your granny flat is well built, durable, and big enough for all the potential needs of your future tenants.
Don’t make it mobile
You might be tempted to put your granny flat on piers or stilts just because it’s sometimes presented as a cheaper option. The thing is, by being easily transportable and removed, it cannot actually count on your overall property value. In other words, you’d be adding rental value, but not capital value. Therefore, do your research in advance and unless you actually need it to be transportable, don’t build it that way just because somebody suggested it.
If you’d like to increase the value of your property, adding a granny flat is a good way to do that. It would allow you to not just increase the overall value, but also make a profit by renting it in case your family does not need to use it. So, keep in mind the size and the quality of your granny flat, don’t make it mobile unless you actually need it that way, make sure it is well equipped with everything the potential tenants might need, and your property value is guaranteed to increase.
by Derek Lotts