There are many benefits of building a granny flat on your property. It can help create safe and secure lodging for your family members or relative, increase your property’s value, or generate rental income. While it may seem a good decision to construct the building on your property, you should know many things about it.
1. Council Approval
Your location and living situation will affect what the council will require approval. It is recommended to visit your local council to check the eligibility requirements.
- Get a development application
- Check all the limitations and governing policies that need to be complied with
- It can take 10 days to 8 weeks for your application to be approved
2. Size Considerations
There are certain minimum land size requirements for Granny flats. Even if you seem to have a large enough property, you should know what the local regulations say about the minimum required size. The minimum required size of the property in some states and territories is 450 sq.m. In different states, the maximum allowed building floor area ranges from 50 sq.m. to 80 sq.m.
3. Financing Your Granny Flat
If your home is still mortgaged, you will have to apply for a home loan for the addition. Your home’s equity can help in your loan application, it will still be required to demonstrate your eligibility for repayment.
- Your home will have to be re-valued
- Prepare your house and floor plans for appraisal
- Pursue with banks with specialized products for developing accessory dwelling units
It may be required to refinance your existing mortgage.
4. Design Your Flats
Hire the services of a project manager or architect to design your flat. There are companies that specialize in designing and building Granny flats. The design will be created by taking the following factors, requirements, and regulations into account:
- Number of rooms
It is recommended to discuss your rough idea with the architect to simplify the design process.
5. Renting the Flat
It is recommended to consider the purpose of the unit before you begin the design process. Many homeowners will build these units to increase the value of their property and rent it to tenants. This makes these flats excellent investment options. It is also recommended to get a professional opinion about the potential rental income and whether the cash flow can help you cover the cost of construction.
6. Duration of Construction
It will also help you to know how long your granny flat is going to take to build. Many factors will come to play here, including:
- Installation of prefabricated units
- Building from the ground up
- Installing a flat pack
On average, you should expect a flat to take anything from 12 to 15 weeks to complete.
Besides these things, you should also know who can live in the unit. Different states have different rules for who is allowed to live in these buildings. For example, some states and territories allow only dependent persons or immediate family to live there. Once that person leaves or passes away, you may have to remove the building. If you are exploring rental opportunities, make sure to check your state’s laws whether it is allowed or not.