Are you in search of an option to generate income from a property or provide accommodation to elderly or adult children in the family? Hopefully, you aren’t thinking of building a new house or renting one when rents and housing construction costs are on the rise. Building a granny flat is an attractive alternative. We at 5 Star Granny Flats are experts in this field and provide start-to-end granny flat design and build solutions. Here are some things you should consider before starting on the construction.
Detached Or Attached Granny Flat?
You can think of a freestanding granny flat or even add it as an extension to your existing house. Your preference is dependent on the extra space available in the present lot as well as the structure of your current home.
When you have a freestanding granny flat, it is a separate structure with a separate entrance and disconnected from the main house. Its main advantages are privacy, and an opportunity to rent it out as separate premises. However, it does not allow extension of the indoor areas of your house.
An attached granny flat is an annex to the existing house with a linked door. When you open the door, you add space to your house with an additional bedroom/en suite, etc. Alternatively, you can use it to serve various purposes like a guest, children’s play/hobby or study room. If you want to rent it out, close the linking door, and it becomes a separate living space.
Check Your local Council’s Rules and Regulations
Always keep the requirements of authorities in view. Find out dos and don’ts with the local Council. It is necessary to understand all the rules and regulations, changes, and modifications. These mainly revolve around health and safety or taxable income derived from the property.
For example, if your property is under a single title, you are entitled to only one meter. If you decide to rent out the granny flat, you will receive all utility bills like electricity, water, internet, etc. in your name and would have to pay them.
Get Expert Financial Advice
Any property matter and financial aspect related to it go hand-in-hand. Try to know the estimate of the present value of your property. For example, if your budget for the addition of a granny flat is $100000, your property value will increase to that extent. Do you think such addition is worth the money and effort? In the short run, it may not, but if you start renting it out, you are adding to your regular income flow. It may suddenly look like a profitable earning proposition.
In the longer run, the value of the entire property may become multi-fold. A regular addition to your income is liable to be taxed. You need to understand and get clarification about these financial and taxation matters from your accountant and keep the local Council in the loop to ensure that your dealings are correct. For more information on our granny flat builder services, you can get in touch with us at 5 Star Granny Flats today! Just give us a call on 1300 843 921 or fill in this contact us form. You can also use this form to get a quick online quote.