Your property is a treasure – a crowning achievement of your efforts and proof that you are a responsible person interested in financial independence. For many Australians, their home is the most significant investment they will ever have to make. But this also means our possibilities are limited if we need more space. Are your children grown up and now need a separate playroom? Does your family often visit, and you have nowhere to accommodate them? In this case, a good idea might be to call on the professional services of granny flat builders in Sydney.
Granny flat builders could work with you to create an accessory dwelling unit that meets the needs of the essential people in your life. In addition, an ADU could be one of the most cost-effective ways to add extra space to your property. Do you want to change your lifestyle and benefit from a home gym? Then building one adjacent to your property could be a worthwhile investment. Are you interested in boosting your home’s value and earning additional rental income? If so, granny flats for rent could be the key phrase to your success.
More and more people are interested in discovering affordable granny flats for rent in Sydney. And the reasons are multifaceted. New South Wales is undoubtedly the most developed state in Australia, which makes the majority of work and education opportunities localized in this part of our country. Demand outstrips supply. Therefore, many young people are constantly looking for long-term accommodation at a reasonable price. What can this mean for you? Permanent tenants that, in a short while, might transform the ADU into a profitable investment.
They Can Be a Fantastic Asset
Granny flats can add over 30% to the market value of your home. And since their construction costs are affordable, ADUs almost always result in a positive ROI. Let’s say you own a home in Perth, and the market value of your dwelling is $580,000. Investing in a high-quality two-bedroom ADU built by specialized granny flat builders could cost you $120,000, and that’s for an industry average. A 30% boost to your property would add up to over $170,000. And that means you’ll be left with a $50,000 profit at the end of the construction.
In other words, the building costs of the ADU will be amortized by the surplus brought to the market value of your property. Not just that, but you will record a significant profit. And on top of this, you must consider the practical advantages that can be offered to your property. A granny flat will increase the usable floor space of your estate, act as extra bedrooms to accommodate your friends and family, and be used as a storage room to store your belongings. Not least, you could offer your granny flats for rent, which will benefit both you and potential tenants.
It’s All About Being Profitable
The median rent in Australia has exceeded $600 per week. And things are even worse in Sydney. But you may not want to encounter difficulties finding tenants, so you will ask for a monthly rent of only $500 per week for your ADU. What does this mean? A substantial profit. Let’s say, for example, that your total household income is $80,000, to which we can add the $26,000 you can expect to receive from rental revenue. And for the sake of simplicity, let’s say you don’t have any deductibles, which will most definitely not be the case.
Your combined annual income would be $106,000, resulting in you paying a 32.5% tax at the end of the year. You will be left with $71,550, of which $17,500 will represent your ADU rental income. Let’s say, above all common sense, that you also want to help out your tenant by paying out monthly utilities, which amounts to $4800 per year. Your overall profit on the ADU for a taxable year will be $12,700. This means that your entire construction investment could be repaid in less than ten years. It’s a good deal, and that’s why the supply of granny flats for rent in Sydney is growing substantially.
Perfect for Your Aging Relatives
As the name suggests, granny flats were initially used to house close relatives and supervise them once they could no longer care for themselves. However, ADUs have evolved, and today they are used for a suite of different activities, many unrelated to hosting people. An ADU could act as your next studio, workspace, or gym. Or, it could just as quickly be a playing room for your children. The granny flat builders in Sydney you call could create for you a versatile building that can either be rented to meet your family’s economic needs or used to fulfill your space requirements.
ADUs are perfect for getting closer to your parents or grandparents, can be a solution for multigenerational families who want to live in one place, are a good idea for people who want to downsize and move into a more manageable space, and can also boost your financial stability. Do you wish to raise a significant amount of money quickly? Then you could move into your ADU while renting out your main property. Depending on the number of rooms and the neighborhood, you could earn upwards of $1000 a week. And that means your investment could pay for itself in less than two or three years. An action that, in the real estate world, is almost instantaneous.
It Makes Perfect Sense
Are you a Sydney resident? Then calling on the professional services of ADUs builders could be one of the most inspiring decisions you can make to maintain your family’s financial security. ADUs come with practical advantages that, in the long run, can significantly increase your standard of living. And at the same time, they can be a financial instrument that will massively increase your household’s annual income. A $100,000 investment in an ADU could be covered immediately by the extra value added to your primary residence.
Moreover, your return on investment from rental income will turn positive in less than six or seven years. ADUs can be transformed into the perfect workspace for your needs; they can be extra bedrooms to host your relatives, act as playing rooms for your children, or be fully-fledged home extensions that you can use to increase your standard of living. Granny flats are a staple of Australian homes, have soared in popularity recently, and are among the best property investments Aussie families can undertake.