The Humble Granny Flat
Does your household resemble Peter Pan, where your adult children simply won’t grow up or leave the nest? Perhaps it’s time to change your living arrangements.
Today, multi-generational Australian households are increasingly becoming the norm. This is due to a range of reasons:
- Longer time spent studying at university;
- An increasingly competitive and pricey property market;
- and Expensive aged care facilities.
This means that parents, adult children, grandparents and possibly even the grandchildren are now all living together under the one roof. It’s a rewarding yet chaotic reality that many baby boomers and their families are now experiencing.
In a household of two or more generations, it’s tricky to keep everyone happy. How can you establish suitable living arrangements that keep the family together while maintaining comfort and peace?
A good solution is to look at your own backyard. If the space permits, you could build a granny flat that can comfortably house one of those generations. The great thing about building a granny flat is that each generation can enjoy the benefits of living as an extended family, whilst having some privacy. Separate living areas create independence and space, which may be important for mature, young adults and for you.
1. Minimise Expenses
If you’re a baby boomer wanting to look after your ageing parents, a custom-built granny flat can alleviate the worry that often comes with an aged care facility. A granny flat purpose built for safety, comfort and accessibility, is often a more affordable alternative to aged care.
2. Create Space
What about those stay-at-home young adults? A short residence in a granny flat could be the helping hand they need to get on to the property ladder. Time out from paying competitive rent will enable them to save a good deposit on a first home. Just be sure to have a conversation upfront about how long they need to stay and agree to a timetable of cohabitation. As the needs of your multi-generational family change over time, a granny flat can be rejigged for new familial requirements. The space can be transformed into a home office, or even a particularly savvy investment to help pay off your mortgage sooner.
3. Rental Income
In some Australian states, homeowners can monetise this secondary dwelling, choosing to lease the granny flat to paying tenants. Alternatively, if you don’t need that much space anymore, you may even wish to consider moving into the flat yourself and renting out the main house for a higher return. If you’re not up to the commitment of a long-term rental, consider short-term rental websites such as Airbnb and transform the space into a clever revenue stream.
And if you choose to put your home on the market, buyers will certainly be taking note of the granny flat in your backyard.
Secondary dwellings can add significant value to a property, with investors seeing the potential of increased rental returns. So, whether you intend to build a granny flat for the extra space or even as a source of income, Gateway can help. View our Granny Flat loan.