To keep their feet on the ground and prepare for future chaos, a lot of people in their 20s and 30s are making practical financial moves. One of the smartest is investing in a granny flat. Let’s look at why buying a granny flat is a savvy move for millennials.
If you purchase a home in a location with a decent demand for rentals, such as Sydney, Wollongong, or Central Coast, you can expect a healthy rental return. For a one or two-bedroom unit, you can earn around $600 a week, if not more. Use this extra income to pay down your mortgage and you’ll quickly build up equity in your home. Creating an income stream through renting out your granny flat also means less stress – if you need to change jobs or become redundant temporarily, you still have income coming in from the rental.
Depending on how financially savvy you are, you may be able to use the equity you build up to purchase another property. This can then provide another source of income that you can use to meet other financial goals like saving for retirement.
Building a granny flat on your property is in itself an investment – but it’s one that can pay you back in the long run. With a smart design and high-quality materials, your granny flat will look and feel like a small luxury home for years into the future. When you sell your existing home, the small home will make your entire property more valuable, making it likely you’ll recoup most or all of your investment. Depending on the market at the time of sale, you may even be able to sell for more than you originally paid for your home and granny flat.
Renting to a long-term tenant isn’t the only way you can generate income from your investment. You can also use your granny flat as a short-term rental. List it on a popular site such as Airbnb and style it to appeal to people who are on holiday or visiting the area. You can use short-term renting if demand for long-term rentals goes down, helping you to weather market changes.
There are a few financially-savvy things you can do to mitigate risks and ensure your granny flat investment serves your long-term goals.
First, talk to a financial advisor to help you set a realistic budget and to make sure you fully understand the costs of renting out a property. Second, be smart about saving. Always have enough set aside to cover your expenses for at least three to six months. Third, choose an experienced builder for your granny flat. Innovative designs, quality finishes, and a high level of craftsmanship will help you achieve stunning results.
If you’re thinking of investing in a granny flat, come walk through our display home to get an idea for what’s possible. We build high-quality small homes for affordable prices. Schedule your appointment today.
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.
