Adding a Granny flat is a popular choice for extra accommodation for extended family or as a way to generate some extra income by renting out the space.
Some of the more popular available options for Granny Flats are:
- Fully self-Contained for extended Family
- Home Office space
- Self-Contained Rental Unit for extra income
THINGS TO CONSIDER:
- You will need council approval – This is essential if you are looking to sell your home down the track.
- If you are planning on selling your house in the future will the addition of a Granny Flat add value to you home or limit your potential market. The extra income you can generate from renting it out will appeal to a lot of buyers.
- If it’s self-contained, you need to consider access to and from the Granny Flat and parking options. All of this will need to be factored in to the plans.
Once you have established your needs we can assist you through the process to get your Granny Flat passed through council and build.
The addition of a granny flat is a smart way to increase the value of your property – by boosting the amount of liveable space. Whether it is to be a granny flat to accommodate downsizing older family members, or guest house for family and friends, a separate teenager retreat, the perfect home office, studio or an additional source of income as a rental property, Backyard Grannys is the industry leader in the design and construction of contemporary granny flats.
However, there’s a few things you need to consider before your granny flat plans become a reality.
One of the first questions to consider will a designer granny flat fit in my yard? First, your property must be zoned residential and be a minimum of 450m² in total area. Additionally, there are a few other areas you need to consider, you can find out how to build your granny flat with no council approval. The granny flat itself can be a maximum of 60m² to be considered a complying development.
- Site requirements
Your property needs to be at least 12m width at the building line of the existing dwelling. A setback of a minimum 3m has to be maintained from the rear of the property and 0.9m from the side boundaries. Your granny flat also needs to maintain a distance of 3m from any existing trees that are over 4m in height. Site access is also a consideration. Ideally, 1.2m to 1.5m clear access will keep your costs down and while it’s not impossible to work with smaller spaces it will add to the costs due to the manual labour required.
- Your Budget
Obviously your budget and finance are a big consideration when building a granny flat and we highly recommend speaking with your bank or financial adviser ahead of committing to a build. At an average cost of between $120,000 and $130,000, making granny flats much more affordable than a large-scale home.
A key question is what approvals are required and from where. Established in conjunction with another dwelling (the principal dwelling),
- On the same lot of land as the principal dwelling (and not an individual lot in a strata plan or community title scheme), and
- May be within, attached to, or separate from the principal dwelling.
You will need to apply for a Complying Development Certificate (CDC) through your council or an accredited certifier.
Construction time for your new granny flat is generally between 12 and 14 weeks. It may seem like only a few months, but you really need to think about the implications the build might have. If you’re building in your own backyard it will impact your access.
As it’s a secondary dwelling, a granny flat has to produce an income before you can claim depreciation. Assuming that’s the case, you can claim depreciation for capital works. These includes the wear and tear the structure undergoes during its lifetime. You need to speak to your accountant or a taxation expert about the potential for depreciation because your granny flat can add to your depreciation schedule even if the main dwelling is owner/occupied.
- Tax implications
If the granny flat is being built to provide a rented space to a relative such as your parents or children, you are not eligible for any tax deductions. That said, income received from renting the dwelling to a third party is taxable and deductions can be claimed for the costs of financing the build, maintenance and ongoing running cost