Granny Flats in Sydney are the latest home improvement trend in Australia and around the world. Also known as Secondary Dwellings they are small buildings built on a home’s property. They can be attached to the home or they can be a separate unit.
These flats are so-called because they are an ideal place to house a grandma or in-law. They can also be used for nannies, renters, or as additional family space. They considerably increase the value of the home.
If you are thinking of adding a granny flat to your home, it’s likely you are wondering about the granny flat cost. This article will break down the pricing so you are prepared for your investment.
Granny flat cost varies depending on several factors including:
While most full 60sqm granny flat costs will fall in the range of $120,000 – $140,000, the sky’s the limit with options for customisation and adding features so the cost can go high if you want unique features and finishes.
Most granny flats in Sydney have 2 bedrooms, the size being 60 square meters (the maximum allowed size). However, there are granny flats that feature 3 bedrooms or just 1. Here’s an idea of what you can expect to pay considering the number of bedrooms your granny flat will be equipped with:
The fact that they are pre-constructed would make you think you save money. However costs in running large factories to manufacture these kits, complicated logistics onsite trying to get the kits out the back of homes is often impossible, at best very difficult. That is why most granny flats are built onsite where the materials come in smaller sections and can easily be moved into the rear yard and assembled in position.
Also, granny flat kits are limiting and any modifications you want in your design will cost extra. They are also generally installed on piers which are inferior to concrete slab construction which is more durable and requires less maintenance in the long term.
The kits look cheaper however much of the costly works are not included like earthworks and connection of services.
You can potentially save money on a granny flat by converting an existing structure such as a garage, if you do much of the work yourself.
We’ve established that granny flat cost is not exactly cheap. But does it bring in a high return on investment? According to statistics, granny flats can boost home values by 30% and add around 27% to rental income. That is an extremely good return.
Here are some other reasons why granny flats are good investments.
However, granny flats don’t always pay off. They could end up being a bad investment if any of the following situations occur.
You will be in better shape for affording your granny flat cost if you work out a budget in advance. Here are the steps you will want to take.
Figure Out How Much You Want to Spend: Figure out what you can afford and compare it against what you are looking for in a granny flat in terms of size, amenities, etc. You should also think about how much work will go into getting the unit up and running considering earthworks, installation, plumbing, electrical systems, permits, and more. If you are taking out a loan, monthly payments and interest rates will factor in.
Get quotes: Talk to different contractors to get quotes. This will give you a realistic idea of how much you will be spending and what you can afford. Choose a company that offers the best value for the money, cheaper is not always the best, comparing the quality of the inclusions and finishes and reputation is important to ensure you don’t face costly mistakes or delayed build times which can result in large losses in rental income or mortgage repayments.
Build in Some Wiggle Room: Unfortunately, some construction projects can go over budget due to unforeseen site issues. For example, rock, contaminated soils, unstable soils. It’s wise to plan for these overages so you are prepared to continue construction. Speak to a professional before starting so you know what to account for.
Plan Carefully: The more you plan in advance, the fewer unforeseen expenses you will encounter. Talk to your contractors and designers so they have a clear idea of what you have in mind. Find out what’s possible and not possible so you can move forward with minimal difficulty.
Track Your Spending: Keep an eye on your budget during design and material selections, pull back on overspending early before you go over budget.
A granny flat can be a great investment. It is a convenient option if you want employees or relatives close by, and it increases the value of your property. Now that you know the granny flat cost, you can decide if you would like to add one to your residence. What decision will you be making?
Get in touch with Smart Choice Granny Flats today
If you’re wondering, ‘how can I build a granny flat on my property?’ then make sure to speak to the expert granny flat builders at Smart Choice Granny Flats today. We’ve built a solid reputation for ourselves as a trusted, reliable and customer-centric company. If you’re thinking of building a granny flat, get in touch with our friendly, helpful and knowledgeable staff today. No matter where in the planning stages you are, we would be more than happy to assist you.
