Generate Extra Rental Income with a Granny Flat

Are you looking for ways to unlock the full value of your land? Are your development options limited by the size or zoning of your block? A granny flat may be the answer!

A granny flat is a small secondary dwelling. It may be attached or separate from the main dwelling. In either case, the flat remains on the same title as the main dwelling, and may not be subdivided from the main block. In NSW, a secondary dwelling can be rented to generate an additional income stream.

The NSW Government and Coffs Harbour City Council are encouraging the construction of granny flats, in order to boost the supply of affordable housing. As a result, approvals are generally easy to obtain, and many of the normal developer contribution requirements do not apply. However, the Building Code of Australia does still apply, so construction must still be to a high standard.

By definition, a granny flat must be less than 60m2 internally. Note that this measurement does not include garages or patios, so it is possible to create a very comfortable two bedroom home with garage and patio that still fits within the “granny flat” category.

Benefits for investors

A secondary dwelling can offer investors an extra income stream, helping to maximise the possible returns from a property. Investors around the Coffs Harbour area are often generating between $750 and $800 per week in combined rent from a house and attached flat. This is a much higher yield than could be achieved with a single home alone, even when accounting for the extra cost of building the flat.

A granny flat may be constructed on many blocks where the construction of a duplex or townhouses isn’t permitted. Land as small as 600m2 may be suitable. Give us a call to discuss the options for your land.

Attached granny flat

An attached granny flat is an ideal solution for a new build, where the main dwelling and flat are constructed at the same time. The Building Code requires suitable fire-resistant construction between the two dwellings. In most cases, Balance Design and Construction uses a brick party wall system to separate two attached dwellings. This system provides fire resistance, as well as sound and thermal insulation.

An attached flat is often more affordable than a standalone option.

Separate granny flat

In some cases, a separate granny flat may be a more appropriate solution, particularly where an existing house is to be retained. A separate flat is often more expensive compared to an attached option, but may still be viable in the right circumstances. A separate flat does have the advantage of providing extra privacy.

Knock Down, Rebuild

For owners of older homes, a “Knock Down, Rebuild” may be a viable option. Balance Design and Construction is currently working on such a project in Woolgoolga. Our client had an existing two bedroom cottage that was past its useful life. That building has been demolished, and will soon be replaced with a four bedroom house and attached two bedroom flat. Our client will then have a significantly more valuable asset, with strong rental yield. Without the added value and yield of the attached flat, it’s unlikely the project would have been viable.

The wrap up

Balance Design and Construction has House + Granny Flat options available now. We can custom design a solution to suit your block, your budget, and your unique circumstances. Contact us today to start planning your next investment!

Unlock the value of your land with a granny flat

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I’m thinking about building a new home – how can Balance DC help me?

The team at Balance provides expert assistance at every stage of the residential construction process, from initial feasibility analyses to final touch-ups. Our in-house design team has produced a portfolio of exceptional new home designs, and we also offer custom design services using state-of-the-art design software (including 3D renderings you can view on your smartphone or VR glasses!).

We have solutions for steep sites, beachfront lots, and unusually-shaped blocks. We take care of Council paperwork and approvals, and provide professional interior design advice to ensure your home is stylish and practical.

Boutique Developments and Multi-Builds

Seeking a construction partner for your next investment project? Balance are the Coffs Coast experts in townhouse and boutique developments, with multiple successful projects delivered over recent years, producing excellent returns for our clients.

We offer a unique service to investors, with our ability to handle every stage of your development, from early concept plans through to completion. We provide excellent value, and can even put you in touch with quality local real estate agents to help sell or rent your new development.

We also offer turnkey development solutions so investors can start earning a return sooner with less hassle.

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Can I really afford a custom home?

Unfortunately, the big builders have convinced new home buyers that the only way to afford a new home is to settle for one of their standard plans or pre-arranged house and land packages. But why settle for a home designed for someone else?

A home designed to meet your specific needs may be much more affordable than you realise! At Balance, our pricing is transparent and we’ll happily tailor our designs to meet your budget and the family’s needs.

You’ve got nothing to lose – visit our display home, or give us a call today on 1300 056 298 to arrange a free consultation.

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Contact Balance Design and Construction today on 1300 056 298 to start planning your new luxury Coffs Harbour home!

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