If you are reading this, you are most likely a responsible person interested in finding the most cost-effective ways to expand your living space. Calling on a firm specialising in granny flat designs in Sydney may be one of the wisest decisions you can make, as ADUs in recent years have distinguished themselves as some of the most practical and easy-to-build constructions that can be placed next to our residences. A granny flat could be a separate building where you can carry out your activities or a space you rent out for extra income.
Calling a granny flat builder is bundled with the expertise of people who know the local rules and regulations that must be followed to build an AUD without any problems. ADUs can add substantial value to your property and act as an investment that will be recoverable in no time. But you are a person who prefers to be well-informed and therefore needs as many details as possible. So, in the following article, we will analyse the economic advantages of an ADU and present some of the strengths that can come with using the services of a granny flat builder.
Why Use a Professional?
Calling on the professional services of agencies specialising in granny flat designs in Sydney comes with many advantages, the most important of which is the expertise of specialists with experience in their area of activity. Firms specialising in granny flat designs employ professionals with proficiency in manufacturing and designing granny flats according to clients’ specifications. Do you need extra space and want to build a one-bedroom ADU? Then calling a granny flat builder is vital for maximising your investment.
Granny flats construction companies can work with you to bring your vision to the surface. Granny flats can be customised to meet your family’s unique requirements, and the final cost of the construction operation may differ depending on the materials used and the complexity of the work. As a general rule, however, one-bedroom granny flats command an average price of anywhere from $90 to $120 thousand, which is significantly less than what it will cost to build a house on a new lot.
Think About the Economic Benefits
The properties listed on the Australian market appreciate by the day, which is great for homeowners, but it’s less exciting for those looking to change their residence. Are you someone who needs more space? Then most likely, your financial circumstances don’t allow you to buy a new dwelling. Therefore, the remaining alternative for your situation is to seek the professional services of a team specialising in granny flat designs in the great Sydney area. Why are ADUs a favourable financial investment? In short, because they can cover their investment cost in a short time.
The average cost of rent in many Australian cities has exceeded $500 per week, but for convenience, let’s say that for your ADU, you’ll only charge $450. The rent you will collect annually will therefore be $23400, which means that in just four years, you could raise enough to recoup your initial investment. Of course, you must pay rental income tax on the amount you collect in a calendar year. However, the percentages speak for themselves. Investing in an ADU can be one of the most cost-effective financial decisions you can make, and the expertise of a professional granny flat builder can be crucial in keeping the overall cost of the work at an acceptable level.
What Are the ADU Regulations in New South Wales?
Granny flats are fairly straightforward constructions, and under the Affordable Housing State Environmental Planning Policy approved in 2009, NSW homeowners do not need council approval if they wish to build a granny flat on their land. However, some minimum requirements must be followed. Firstly, the ADU cannot be constructed over a utility easement, and your main property must be a minimum of 450 square meters in size. The ADU must not exceed 60 square meters, and it also needs to be constructed adjacent to your primary residence, although they do not need to be attached directly.
The maximum height of an ADU cannot exceed 8.5 meters, and the construction of the unit must comply with the BCA standards. Last but not least, from a legal point of view, an ADU must be registered under the name of the principal homeowner, and the construction of an ADU is limited to one building per lot. Suppose you decide to sell a granny flat property. In that case, you may be able to claim an exemption on capital gain taxes, or you may be able to deduct, in the next tax season, the interest you paid on the loan taken out to finance the construction of the granny flat.
The requirements for building a granny flat are not particularly complicated, and the process has been simplified quite a bit in NSW with the adoption of the SEPP. But you are busy, and you probably don’t have enough time to deal with the paperwork required for construction of this nature. So, turning to ADU builders could help you significantly. And it will all be worth it because houses that benefit from an ADU receive, on average, a 30% boost in market value when they are listed for sale. If your home was valued at $800,000 before the ADU was built, a 30% boost would mean an additional $240,000. Since constructing a granny flat usually costs half that amount, you could double your investment in just a few weeks.
Do not Hesitate
Using the services of a granny flat builder in the greater Sydney region can be one of the best financial decisions you will make. The economic impact of an ADU on your property cannot be ignored, as the numbers speak for themselves. A granny flat can be rented out to bring additional and steady income, it can be used as extra storage space, it can house your close relatives, it can act as an extension of your living quarters, and last but not least, it can be an investment that brings additional market value to your dwelling.
Granny flats are, in many ways, the perfect investment. Cheap compared to other types of construction, quick to finish, and do not require much hassle to get approval for. Furthermore, they are an investment that is almost impossible not to turn a profit. Even if you’re not interested in the practical aspects of an ADU, the financial elements can’t be ignored, and granny flats should be on the list of any responsible homeowner who is interested in increasing the market value of their dwelling.