With recent council changes across New South Wales, the humble granny flat may no longer be so humble. Are you a home owner with space on your property to build a granny flat? If so, you are in the perfect position to increase your cash-flow by renting out a granny flat.
In 2009, the New South Wales Government introduced the Affordable Rental Housing, State Environment Planning Policy (SEPP), known as the ‘granny flat initiative’. This policy was put in place as a solution for improving inexpensive rental accommodation within the state residential zones.This policy allows home owners and developers to build a granny flat on a property and rent it out separately. The benefits of this opportunity not only result in an increase in income, but also create great depreciation benefits.
Basically, with the introduction of the SEPP, those interested in building a granny flat no longer have to jump through hoops to get approval; there are now given a clear set of standards to follow, and those found to be complying are approved within 10 days.
In an article featured last year on Property Observer, a property investment news website, discusses the SEPP and the advantages of building a granny flat for use as a rental property. The article by Jo Chivers, a property development manager, argues that with Northern NSW generally considered an expensive property market it usually results in investors negatively gearing their property. Whereas the option of a granny flat, a smaller project, will create a cash-flow positive situation.
Given the cash-flow positive situation, coupled with the government’s projection of single-person households being the fastest growing area over the next 20 years; a granny flat really is a save investment, and why wouldn’t you want to jump on this opportunity?
The NSW Government have described the policy as not only boosting the supply of affordable rental accommodation, but helping mums and dads with the space for accommodating their family, and also providing the opportunity of an additional source of income.
With the introduction of the SEPP, it allows more families to be in a position to support each other. It has also enabled everyday families, and not just developers the chance of owning an investment property, and one that will reap the benefits of a cash-flow positive situation.
The wonderful incentives within this policy offer great encouragement for home owners and developers to invest in a granny flat, which in effect is helping to create the supply of affordable rental options.
If the idea of a safe property investment interests you, then give Lifestyle Granny Flats a call on 1300 762 250 to jump on this great opportunity.