Granny flats in NSW are proving to be good investment opportunity due to the on-going housing shortages, especially homes suitable for one and two person households. As a result, the NSW Government introduced a streamlined SEPP complying development approval processes to increase the attractiveness of building granny flat solutions to meet housing demand.
With an estimated under-supply of 89 000 dwellings in NSW, more housing stock is desperately needed. Over 50% of households are now 1 or 2 person and this percentage is rising. So demand is outstripping supply making 1 or 2 bedroom granny flats an even more attractive investment.
So the good news for potential granny flat investors… is that there is generally ample choice of quality tenants.
To aid the process of meeting housing demand, the NSW Government is encouraging granny flat construction to address the housing shortfall. The Affordable Rental Housing State Environmental Planning Policy, overrides any local granny flat laws.
The SEPP allows for freestanding granny flat designs, home extensions or the internal conversion of space within the residence to create a granny flat in the vast majority of residential areas as long as it meets certain conditions.
The principal conditions for adding granny flats in NSW include the land size being 450m2 or above and the granny flat floor plans being not more that 60m2. Creative Spaces software now allows you to choose online granny flat plans and assess your plot’s suitability for the design on your computer screen.
Creative Spaces can also handle the complying development certificate for you. You may be eligible for a quick 10-day complying development approval from your local council.
Creating a granny flat within spare space within your home is an option. However a home extension or freestanding granny flat design may prove to be simpler in terms of fire separation between the principal and secondary dwelling.
Generally, it will also offer your tenants greater privacy and better designed spaces. This is important for attracting quality tenants. This type of development is also likely to offer your home greater flexibility and increase the resale value of the property down the track.
Both 1 and 2 bedroom granny flat floor plans are both available within the NSW complying development rules.
Creative Spaces are now offering innovative, architecturally designed granny flats that are generally a cash-flow positive investment from day one.
The best investment you could make might be in your own backyard.