REVEALED: The surprisingly cost effective way to boost the value of your home by 30 per cent – and tap into the Airbnb boom to boot
- Experts are encouraging home owners to build granny flats on their properties
- They have potential to boost home values by 30% and add 27% to rental income
- 583,440 homes in Australia meet the criteria for additional self-contained units
- Sydney had the greatest potential, with 233,218 properties meeting the criteria
Australian home owners can boost the value of their property by 30 per cent and break into the booming Airbnb industry by building a granny flat.
More than half a million homes on the east coast have enough space on their property to build a self-contained unit, which has the potential to add around 27 per cent to rental income and nearly a third to property value.
Over 583,000 properties in Sydney, Melbourne and Brisbane meet the criteria for an additional unit of at least 60 square meters, according to CoreLogic and Archistar analysis.
Building a one-bedroom granny flat would require an initial investment of around $120,000 mark, while the outlay for a two-bedroom would cost about $200,000.
Australian home owners can boost the value of their property by 30 per cent and break into the booming Airbnb industry and by building a granny flat, which also has the potential to add around 27 per cent to rental income
Built on a million dollar home, a self-contained unit would add around $300,000 to the property’s value.
‘Building a granny flat is becoming an increasingly compelling proposition for homeowners in a relatively lacklustre market,’ CoreLogic Head of Research Tim Lawless said.
‘Not only can it help to manufacture new capital gains, but it has the potential to generate rental income while meeting demand for more affordable housing.’
A granny flat usually costs less to rent than a standard apartment, making it a popular and affordable option for renters on a budget.
Over 583,000 properties in Sydney, Melbourne and Brisbane meet the criteria for an additional unit of at least 60 square meters, according to CoreLogic and Archistar analysis
‘Many properties identified as suitable for a granny flat are in densely populated and traditionally expensive areas, such as Sydney’s Northern Beaches or Hornsby,’ Mr Lawless said.
‘More granny flats on the rental market will make it easier for young people to stay in their preferred area, rather than move further afield to find value for money.’
Co-Founder of Archistar Robert Coorey said that many homeowners are sitting on a pot of gold in the form of excess land that could be developed to generate a new stream of income.
‘This has wider economic benefits for renters who want to access popular suburbs without paying a premium,’ he said.
He said that there’s also benefits to the family of creating a granny flat.
Co-Founder of Archistar Robert Coorey said that many homeowners are sitting on a pot of gold in the form of excess land that could be developed to generate a new stream of income
‘(It gives) adult children more privacy while they save for a mortgage, keeps loved ones close as they become more reliant on care or gives additional accommodation for overseas visitors,’ he said.
Capitalising on this untapped potential for half a million additional dwellings could also deliver economic benefits.
‘What is a relatively small outlay for home owners could boost the construction industry to the tune of $87.5 billion, and accommodate the growing population in some of the cities’ most popular suburbs,’ Mr Coorey said.