Unfortunately, your current living space might no longer be enough for the growing demands of your children. Are you reminiscent of the days when you were single and your house was more than enough for your space demands? Well, those days are now long gone, and most likely, like the majority of Australians, you are currently on the market for a new property that will give you the expansion required for the continuation of your long-term plans. There is a problem, however. The real estate market, right now, is in a tough spot, and demand, at least in the Central Coast, far outpaces the available supply.
Are you trying to maximise the space available on your lot, and you don’t have the necessary monetary resources for investing in a new home? In that case, perhaps one of the best things one can do is call on the services of granny flat builders in the Central Coast and construct an ADU that fall in line with your subjective requirements. What are granny flats? In short, they are self-contained secondary dwellings that must be built on the same lot as a main property. ADUs can be utilized as a separate storage space, can act as a living area for your family, or, they can be rented out at a rate that will advantageous both for your as well as for tenants.
What Are the Practical Benefits of ADUs?
Well, there is a reason why they are called granny flats. Back in the day, these types of constructions were primarily utilised to host elderly relatives who didn’t want to go into assisted living, but rather maintain their independence while keeping close to the company of their families. ADUs represent a cost-effective way to keep your elderly relatives around while also giving them the space required for day-to-day activities.
For less than $150,000, ADUs can be equipped with separate bathrooms, kitchens, bedrooms and patios. They pretty much act as mini houses, which can often be constructed without council approval, at a rate that’s more than advantageous for Sydney-based construction projects. Granny flats are easy to maintain, they often only require a Complying Development Certificate for starting the construction, they are cheaper to build than the cost difference associated with larger properties, and they can be utilised for everything, from hosting friends and relatives, to acting as a separate space for your loved ones ongoing demands.
A Central Coast granny flat floor plan can be designed with either long-term living or multi-functional purposes in mind. You don’t want to live there? In that case, you could transform your ADU into a separate gym or playing room for your children. Do you want, however, to rent it out? In that case, the financial benefits will quickly outpace the costs of the construction.
What About Those Monetary Gains?
Sydney is currently going through a veritable housing shortage that doesn’t seem to be stopping anytime soon. Rent is sky high, the median price for centrally located dwellings has surpassed the value of $1.7 million and the housing market is growing by around 5% per year. Most people are looking for more affordable living arrangements, and for this reason, the popularity of ADUs designed by reputable granny flat builders in the Central Coast has expanded significantly in the last couple of years.
Sydney rental prices are the highest in the country, and the affordability forecasts applicable to most Aussie families have suffered tremendously. Granny flats, therefore, are a solution taken into consideration by more and more people, as their rental costs are typically much lower than what’s available for conventional flats or houses. This, in your case, can be advantageous, as the occupancy rate for an ADU constructed by reputable granny flat builders should hover well above 90%.
At a 90% occupancy rate, a rate of $550 per week, and a building cost of $120,000, your ADU should pay for itself in around nine years. Your gross rental income will hover around $26,000, and your total maintenance for a year should not be more than $7,000. Your net rental income will, therefore, be somewhere around $19,000, which at a tax rate of 30% will bring your total profit per year, to $13,300. ADUs, when designed by granny flat builders, are a good rental investment, and they can also increase your main property’s valuation by more than 30%
What Would Be a Flexible Granny Flat Floor Plan?
It really depends on what you are looking for. When deciding on a granny flat floor plan, you first of all should know whether the unit will be utilised for renting purposes, or as a separate storage/activity space for your family. Let’s say you are looking to build on the growing affordable housing demand specific to Sydney, and you are seeking to invest around $120,000 in a one-bedroom ADU that will be ideal for single occupants.
In such a scenario, the granny flat floor plan could probably be limited to around 50m², and be composed of one bedroom, one bathroom and an open dining area that will also feature a small kitchenette. Such a unit could probably be rented for around $450 per week, depending on the area. Therefore, realistically, you could recoup your money in about one decade.
However, things are a bit different for a two-bedroom flat, which will mainly be appealing to small families. In this case, the granny flat floor plan would feature two bedrooms, one bathroom, one larger open-plan kitchen, and perhaps a small deck that would connect the ADU with the backyard. An ADU like this will cost a bit more to construct, and the total floor area will sit at the maximum value allowed in NSW, at 60m². That said, the rental income will also be higher, as you could expect to receive around $700 per week.