4 Reasons for Investing in a Granny Flat

Building a humble granny flat is often seen as a strategy to add additional space to a home. There are endless uses to a granny flat; you can adapt to your lifestyle. You may start off using the space to run your business or eventually use it as a place where your teenage children can hang out. It can be used as a nursing home for your elderly parents when your kids move out. A granny flat is a worthwhile and profitable investment.

Granny flats are easy to build and maintain and eventually provide a stable source of income. You can get amazing deals with construction firms such as Smart Choice Granny Flats.

With a granny flat in your property, you can make up over $400 per week in rental incomes. 

Earn hundreds of dollars from rent

You can rent out a granny flat in your property. You can earn hundreds of dollars per week, especially if your property is in a busy urban area. Granny flats can earn you a return on investment of up to 11%, which is high according to market experts. Whether the granny flat is in a property you own or you are renting, this additional income can help ease your financial burdens and speed up your quest towards financial freedom. Construct a granny flat in your home efficiently and affordably with construction firms such as Smart Choice Granny Flats.

A great strategy to spread income risk

A majority of people depend on a single income to cover their expenses. In most cases, this income source comes from a job which requires active involvement. But, once you have constructed a granny flat, you can have a second income source which enables you to spread income risk. If you have a property you are renting out, constructing a granny flat can help you earn an additional income. You will have a steady cash flow per week. If your main property remains unrented, you won’t have income, but with a granny flat, it becomes unlikely that your properties will remain unoccupied at the same time.

Helps you pay mortgages

Interest rates on bank borrowings are becoming steeper. Banks are enforcing stricter lending policies. Many people who applied for home loans are put in a risky financial position. An additional income stream helps alleviate mortgage payments. Constructing a granny flat is only a fraction of the cost of your entire property. When you opt for a modern design, it will be more appealing to potential renters. As long as you have a reliable tenant, your granny flat will produce a steady income source. It will ease financial pressures that come from mortgage repayments and can even add value to your property. 

Tax benefits

When you are renting out a granny flat, you have access to claims on your depreciation schedule. You can apply for benefits on land tax because of the extra tax depreciation. A newly constructed granny flat helps you claim a considerable amount of cash losses which will help you offset taxes paid per annum.

Conclusion

Granny flats are a great investment strategy that can help you earn a stable income passively. It also helps ease other financial responsibilities, such as paying off mortgages. Build an auxiliary property in your home to help kick up its value and aesthetics.