This week, Ipswich and Logan granny flats, the expert granny flat builders in SE Qld, bring to you an exciting reminder on why dual-income investment properties are such a huge trend.
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Whether it’s to pay off your mortgage faster, or simply giving you some extra cash to pocket, read on to discover why dual-income investment is a great opportunity for you:

Earning two incomes from the one property sounds like every investors’ dream come true, but is there more dual-income investments than meets the eye?

A dual-income investment is effectively what is says on the tin – a property that provides two incomes to an investor, by way of two separate rental agreements. It may be a granny flat, a duplex, dual occupancy, or a dual-key property.

All property types have provision for two incomes, but each differs slightly in its presentation, cost, and buyer/renter appeal.

A granny flat is an additional dwelling, typically the same size or smaller than a studio apartment, usually situated in the backyard of an existing property. Some granny flats don’t require council approval for construction, and in recent years, particularly in markets such as Sydney, they have become an increasingly popular addition to many suburban homes.

A duplex is two adjoining properties on the same title (in a majority of cases) – or a residential building divided into two apartments/townhouses. Although duplexes can be sold individually, investors can choose to construct them as a way of gaining a larger number of properties from the one plot of land. Each side of a duplex is typically identical to the other, as this maximises building and material efficiencies.

Dual-occupancy properties are similar to duplexes in that they refer to two properties on the one plot of land, but they do not necessarily have to be adjoining. For example, on a larger plot of land, say in a rural residential area, two properties may exist on the one plot of land. Dual-occupancy properties will typically share infrastructure such as entrances and driveways.

Dual-key properties refer to properties with floorplans which allow for an area of the residence to be locked off for separate use. Each resident may share common facilities such as the front door, but have access to separate areas of the property for their living quarters and kitchen facilities.

Advantages of dual-income investments include:

• Maximising the potential of one block of land: instead of having a single property on a large block of land, you can utilise more of the space available to you 
• Improved cash flow, which can contribute to your loan servicing capacity 
• Reduced maintenance costs 
• Increased portfolio size without the cost of outlay associated with buying two properties

Disadvantages of dual income investments 

• Reduced property desirability: many owner-occupier buyers may not be attracted to a dual-income investment. The design may not suit their requirements, or they may simply not be attracted to the idea of having another property attached, or in close proximity, to their residence
• The risk of over capitalising: it’s very easy to spend money on developing a dual-income investment that may not be reflected in the value of the overall property. For example, while granny flats can be a cheap entry point into property investment, it is very easy to develop them to a higher level which may not be reflected in the asking price come sale time
• Minimal contribution to equity: following on from the previous point, the lack of market value attached to some dual-income properties means that they may not be the best vehicle for enhancing equity, and therefore increasing your borrowing capacity
• Being stuck with multiple vacant properties in the one area: diversification is the key to avoiding the risks associated with property investment, and dual-income investments run the risk of being stuck with two losses of income, not one, if the market takes a turn for the worse in that area
• When it comes to sales time, it may be impossible to sell the properties separately (with the exception of some duplexes). This has the potential to present significant challenges
• If you want to pass on the cost of some utilities, such as water expenses, to each of the properties in your dual-income setup, you will need to spend the extra funds required to establish separate meters for each property

What you need to know before you buy a dual-income investment
Unless the investment is simply establishing a basic granny flat in your backyard, the lack of equity sometimes generated by a dual-income investment may mean that it’s not the best investment option for those just starting out. You could potentially spend a lot of capital establishing a dual-income property that, while providing a high yield, may not allow you to establish your investment portfolio as fast as you would like.

For investors with a well-established portfolio, who can afford the significant outlay of establishing a dual-income investment and are at the stage where they want a high-yielding asset to improve their cash-flow situation, a dual-income investment may be a worthy consideration.

It’s important to remember that design considerations are key to a successful dual-income investment, particularly if it’s a duplex or dual-key investment. If you’re buying a property off-the-plan from a builder, or choosing a standard floorplan, be sure to understand the room configurations and flow, the bedroom and living room sizes, the available storage and general finishes, the orientation and whether this is in line with the expectations of the renter demographic in the area.

This week, Ipswich and Logan Granny Flats, the expert granny flat builders, bring to you an interesting snippet about this awesome granny flat and what makes it so unique. Also, it highlights exactly why granny flats are a fantastic investment…

Read and enjoy:

It’s a granny flat, but there’s nothing old-fashioned about this backyard abode. Yet a no-frills building process produced the sleek and stylish finish.

The owners enlisted The Junction-based firm Backspace Living to build the designer dwelling on their William Street, Jesmond, property.

It coincided with the renovation of a two-bedroom cottage at the front of the block, to add an extra bedroom to the house.

Building the granny flat created the potential for additional rental income for the owners, a semi-retired couple from Lake Macquarie.

“We wanted to maximise the return on investment on our property,” the owners say. “We are using this to fund our retirement and we were able to get an additional [to rental income on the main house] $360 per week rent on an investment of $125,000.”

They chose a granny flat, over a larger extension to the main house, because it offered a much better return on their outlay.

“It provides us with a second income on the property,” the owners say.

The couple say finding the right people to build their granny flat was the biggest challenge.

“There are a number of different options out on the market, however Backspace Living took care of everything and met our brief.”

And their feelings about the finished result?

“We love the quality of materials used,” the owners say.

“The granny flat does not feel mass produced or generic.
“It really stands out.”

The couple especially love the custom hardwood timber screening that frames the entertaining area.
“It’s a real feature of the granny flat,” they say.

Backspace Living directors Tim Sullivan and Trent Robinson say their work is about delivering quality architectural design in granny flats.

“Trent and I identified the need for good quality granny flats in an industry that is growing at a rapid rate,” Sullivan says.

“We engaged award-winning local architect Jason Elsley of Derive Architecture & Design to help achieve a stylish granny flat at an affordable price.”

Sullivan says the brief for the Jesmond build was to deliver a stylish granny flat that would maximise the owners’ rental income and deliver a positively geared property.

The new freestanding dwelling uses quality brand-name suppliers and appliances, ranging from Caroma tap ware and Westinghouse appliances to Caesarstone benchtops and James Hardie cladding.

Other highlights include timber flooring and high-raked ceilings (3.2 metres).

Sullivan says he and Robinson are particularly proud of the layout.

“Granny flats are limited [by state government guidelines] to 60 square metres of internal space. However, due to the high-raked ceilings throughout and spacious design, the area feels a lot bigger and brighter,” Sullivan says.

Robinson also utilised his creative talents in the finer details of the fit out. A custom-made vanity unit was made by Robinson on site. It gives the bathroom a modern and unique feel, adding to the sense of custom luxury in the granny flat.

Robinson says while the product is luxurious, the building process was simple and straightforward.

“Backspace Living was able to offer the client one of our many standard designs, so there was no need for the client to engage an engineer, town planner or building certifier,” he says.

“This cut down the time it took to get from concept stage to construction.

“We took care of all design aspects and even offered pre-determined colour pallets to take any stress away from the client.”

The one-stop nature of the contract also meant the project ran smoothly.

“Backspace Living worked with council so there was no need to concern the client with the day to day operation of the build,” Robinson says.

“Regular site meetings were held with the client to answer any questions.”

Sullivan and Robinson aim to make things as simple as possible for clients through the building process, to get to a finished result that looks anything but.

“Our architecturally-designed granny flats are not limited to the old fashioned notion of a ‘little old ladies house out the back’,” Sullivan says.
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“Instead, they offer forward-thinking Australian families a modern lifestyle solution with no sacrifice on style or function.”

This week, Ipswich and Logan Granny Flats, the expert granny flat builders & largest suppliers of granny flats in SE Qld, bring to you an exciting update as property values in South-East Queensland start to increase, with Logan being just one of the star-suburbs…
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This is great news for property investors, so read and enjoy: 

Investors in search of properties that will deliver high capital growth in the years ahead may find southeast Queensland and certain fringe suburbs of Melbourne safe bets.
 
These regions accounted for the bulk of high growth property markets in Hotspotting.com.au’s latest Top 10 Best Buys report, which forecasts the 10 best locations for property investors seeking capital growth.
 
Queensland locations in the report included the Gold Coast, Ipswich and Logan, while the Melbourne regions included the City of Casey and Epping.
 
Just one NSW location was nominated: Wagga Wagga.
 
No property markets in South Australia or Western Australia made the cut, but Tasmania had a surprising addition in Hobart.
 
The report said these locations have “identifiable drivers of demand for real estate, which will place pressure on prices and rents … we expect them to show growth not only in 2016 but well beyond.”
 
GOLD COAST, QLD
Billions is being spent on infrastructure across the Gold Coast in the lead up to the Commonwealth Games in April 2018, which is expected to bring around 690,000 visitors to the city.
 
Ongoing projects include the $150 million development of the light rail network and a $42 million aquatic centre.
 
These and other developments have helped create 15,000 jobs over the past year, adding to the city’s already strong population growth. The Gold Coast’s population is projected to grow by 133,800 people in the decade — the largest population growth in Queensland.
 
“There will be (property) price growth, especially in the genuine residential suburbs,” the Hotspotting report said. Much of this growth is expected to occur in suburbs along the northern corridor between Helensvale and Brisbane.
 
LOGAN, QLD
Logan City’s combination of affordable property prices, good infrastructure and proximity to job hubs could boost home values.
 
Many of the region’s older suburbs have been revitalised through urban renewal projects and Logan is already one of the fastest growing municipalities in Australia.
 
It is being expanded through a $4 billion masterplanned housing community on Waterford Tamborine Road, which will result in 17,000 new dwellings.
 
There is also a $600 million project to redevelop Jeta Gardens Retirement Village, approved by local council in 2014.  The village currently injects $10 million into the local economy annually, but this is set to rise to $100 million.
 
HOBART, TAS ………………..
EPPING, VIC …………………..
CITY OF CASEY, VIC ……………
 
THE REST OF THE TOP 10:
Moreton Bay, Qld:  The region offers affordable housing as well as good rail and road links to Brisbane and the Sunshine Coast, making it a strategically placed property market.
 
Sunshine Coast, Qld:  Billions of dollars in service upgrades, including the development of a $5 billion medical hub, are driving an influx of new jobs to the area, in the process, boosting demand for housing.
 
Sunshine precinct, Vic:     ……………….
Wagga Wagga, NSW:    …………..…….
 
Ipswich, Qld:  A report by the Department of Infrastructure and Transport forecast 56,000 jobs will be created in Ipswich’s central suburbs by 2026. The jobs growth, coupled with affordable prices, will fuel demand for  housing, Hotspotting said.

Logan Granny Flats Sonia Woolley was recently featured in the Australian Property Investing magazine. Read the full article below...

"Granny flats can be lucrative for investors, particularly by improving rental returns, but you can't rent them out everywhere in Australia. Before getting caught up in the hype, make sure you carefully weigh up the numbers."
                                                                                                                                                        VANESSA DE GROOT

Once upon a time a granny flat lived up to its namesake - that is, it was reserved strictly for granny to live in through old age. But that's no longer the case. Over time, the concept of the traditional granny flat has transformed.

While they're sometimes still used for granny or other family members to reside in, they now have other uses including as a home office or more importantly to generate rental income by being rented out to paying tenants.

If you weren't already aware of the growing granny flat trend, as an investor the allure of additional rental income has surely piqued your interest. Let's face it, who wouldn't be keen on deriving a greater income from a property?

But it's not all as simple as it might seem - while there are some benefits to granny flats, and profits to be made, there's a range of factors for investors to consider before they jump in, and as always thorough research must be undertaken to determine if it's right for you.

Before we examine whether granny flats are a growing trend, we need to define what a granny flat actually is.

Basically they're secondary dwellings on a property, either attached or separate to the primary dwelling on the block, but are self-contained, with a separate entrance, bathroom, kitchen, bedroom, laundry and living area.

In contrast to a duplex, for example, a granny flat is on the same title as the property's primary dwelling.

Granny flats are generally allowed in most areas around Australia but the key thing to be aware of is that you can't rent them out to tenants everywhere. In some areas, including Victoria, South Australia and parts of Queensland, you can only have relatives, or dependants, living in them.

Each state and territory - and in fact council - has its own rules and regulations surrounding granny flats, so if you're thinking about building one on a property you own or buying a property with a granny flat, you'll need to research your particular council area to find out if they're permitted, what the rules and regulations are, and whether you can rent it out for income.

Some of the general rules for granny flats include that they can only be built on residential zoned property, the block must be at least 450 square metres and only one secondary dwelling can be built on each residential property.

The average granny flat has 60 square metres of space, though things such as verandahs and carports can be included in addition to this.

While they're not allowed to be tenanted everywhere, it's clear that the laws surrounding granny flats are starting to be relaxed in many areas around Australia, and experts believe this may continue as time goes on.

The argument for allowing more granny flats is largely based on affordability, with many touting this property type as being the solution to the affordable housing issue plaguing some cities. But can we say there's a "granny flat revolution" under way, as some have claimed? Well, there's no doubt that around Australia there's been an increase in homeowners building granny flats in recent years, with Sydney being one of the most popular areas due to the affordability factor and a change in rules.

But Adrian Graham, WBP Property Group's valuations manager, says that while granny flats appear to be on the rise, it comes amid an increasing number of granny flat providers spruiking the benefits of the accommodation type, and the movement has been met with contention.

"Not only are granny flats subject to strict council approval, but they're relatively costly to purchase considering their basic construction and don't attribute value to the property,” he elaborates.

The experts agree that the major benefit of granny flats for investors is rental returns, rather than capital growth, so investors considering this property type should be focusing on potential profits from the additional income.

There will be different results depending on whether you're buying a property with an existing granny flat, buying a property with the potential of housing a granny flat, or simply building one on your existing property, so make sure you do the calculations properly.

While there does seem to be a move towards home builds that come complete with an attached secondary dwelling, to date freestanding granny flats seem to be the most common and one of the reasons is that they're cheaper to build. This is especially true if you have an existing house, as you're not interfering with the structure of that house.

If you're looking at constructing a granny flat, one of the main considerations for determining the yield will be the cost of getting the granny flat approved and delivered.

Rick Stapleton, managing director of Positive Renovations, says a few years ago the cost of standalone granny flats, including approvals, was around $80,000 to $90,000. But he says there were issues with delivering them at that cost as they were "underpriced" and now the average price is around $110,000 for a 60-square-metre granny flat.

Sonia Woolley, Vision Property Group director, who builds granny flats in Queensland, adds that the minimum build would be $99,000 but they can range up to $140,000 for a two-bedroom granny flat with all the trimmings, including landscaping, a deck and a carport, plus another $7,000 or $8,000 for costs such as approvals and fees.

Don't just buy into the hype surrounding granny flats. If you're thinking about adding one to a property you own for extra income, it's important to do thorough research first to ensure it's suitable for your property and the area, and that it will be a solid investment for you. Some of the things to consider include:

• Council rules — Are granny flats allowed to be rented out in the area where your property is located and does your block meet the applicable rules and regulations?
• Rental demand — Is there demand from tenants in the area for this type of property?
• The yield — Do the sums to determine the costs and rental return involved to determine whether it will be beneficial to you
• Your block — Does it meet the minimum lot requirements and is it big enough to accommodate a granny flat comfortably so that the properties aren't on top of each other and setback requirements are met?
• Finance — There can be difficulty in obtaining finance for granny flats from lenders, so make sure you can fund it before putting plans into place

If you've determined a granny flat is for you, you can obtain council approval yourself and then go to a builder to find the right design to fit on your block, or if you want an easier alternative you can go straight to a building company that offers a "one-stop shop", taking care of the whole process for you.

Granny flat laws aren't uniform across Australia, with many states and territories — and even council areas — having different rules.

In general, granny flats are allowed but they can't always be rented out.

In recent years several states and territories have relaxed laws to enable granny flats to be used for investment purposes rather than just for relatives or dependants. But there are areas where you still can't do this and, in fact, in some you must decommission the granny flat if it's not being used for relatives or dependants.

You'll need to do your own research as to a) whether you can rent out a granny flat in your council area and b) what the regulations are in terms of size and setbacks, etc.

Be aware that the rules can change at any time, but here are the general guidelines for your consumption:

While there's a perception that you can build granny flats really cheaply because they're small, Stapleton says the reality is that they're actually expensive per square metre, costing up to $2,000 per square metre or more, largely due to the percentage of space that wet areas - the most costly part of building - occupy in the dwelling.

He advises investors not to underspend, however, as you'll get what you pay for.

Granny flats used to be more basic, with standard finishes, but nowadays a better, often more lavish, product is being supplied.

Stapleton adds that prefabricated models built in factories are becoming increasingly popular because they can be installed quickly. Sixty square metres seems to be about the norm for a granny flat, at least in New South Wales, but they do come bigger or smaller, and most have two bedrooms, a kitchen, a bathroom and one living area.

The potential yields for a granny flat will depend on the area and the rents you can ask, but according to the experts, if you add one to an existing property you own the return on your outlay will be in the vicinity of 10 to 20 per cent, including depreciation benefits.

Whether or not there's a big rental pool for your granny flat will again depend on the area it's in and this is something you need to research before going ahead and building one.

Demand for granny flats will continue to be driven by housing affordability, however, as well as the trend towards single occupant households.

Western Sydney is one of the most popular areas and this is largely because housing is so expensive in NSW's capital - people are looking for smaller accommodation that they can afford.

With housing so expensive in Sydney, property lecturer and author Peter Koulizos says the opportunity to live on a relatively small block of land, albeit behind somebody else, and pay a relatively low rent is very enticing to many people.

But he adds that in somewhere like South Australia, which is relatively affordable, there's no great appeal for people to build, buy or rent a granny flat.

Meanwhile, Woolley says in the council areas of Ipswich and Logan in Queensland, where she's building granny flats, there's so much rental demand they have a wait-list of tenants.

"We have people literally knocking on our door wanting to rent them," she says.

In addition to single, older, often divorced persons, the tenant pool for granny flats also includes young people, either singles or couples who, again, can't afford anything larger.

There's some potential to improve a property's value by adding a granny flat, but most of the experts believe it won't add same dollar value as the cost to install it, so investors run the risk of over capitalising.

Whether or not a granny flat adds value to a property is different in each case, according to Graham, but he says compared to an extension of an existing dwelling, they're an ineffective method of adding value.

He adds that the dwellings aren't typically considered when assessing the value of a property because they're not classed as a permanent fixture of the property.

Koulizos believes properties with granny flats will be harder to sell as the potential buyer pool will be substantially less than an ordinary property, and this is one of the key reasons that capital growth will be restricted.

"Most people aren't looking for properties with granny flats, so there's a lot less demand for that sort of property," he says. "You'll get some investors that are keen but the property market in general is dominated by homebuyers, not investors:'

Koulizos adds that the people that are looking for granny flats - even if they're owner-occupiers looking for somewhere to put teenagers or granny - will be willing to pay a little more, but not as much as the granny flat would've cost to build.

"I'm not a big fan of granny flats because they don't add value to the total property," he says.

"Let's say you buy land for $300,000, build a house on it for $250,000 and then build a granny flat on it for $150,000, that granny flat doesn't add another $150,000 in value if it's all on the same title."

Propertyology managing director Simon Pressley agrees that the resale appeal of granny flats is restricted to a very select market, resulting in diminished buyer competition, and hence investors will experience compromised rates of capital growth.

He says the "specialised" nature of granny flats causes rates of growth to be contained below more vanilla properties in the same market.

While permanent tenants are usually preferable for granny flat investors, an alternative is renting your secondary dwelling on Airbnb.

According to PRDnationwide, the average Australian Airbnb host is now earning $7,100 per year from the site, and the potential of earning this extra income is attracting more people to properties with dual living capabilities or potential (which isn't limited to just granny flats).

PRDnationwide national research manager Dr Diaswati Mardiasmo says renting out a secondary dwelling on a property appeals to owner-occupiers because it can help with affordability.

"Home affordability isn't just about whether or not you can pay off your mortgage; it includes all the costs of maintaining a home such as rates, insurance premiums and utility bills," she says.

Mardiasmo stresses, however, that the income from Airbnb is irregular and unstable and people shouldn't rely on it to service their mortgage and pay their bills.

"As hosting on Airbnb becomes more common, the average earning a home can expect from listing on the site is likely to decrease," she adds.

According to the PRDnationwide research, the rise of Airbnb in Australia has pushed up the value of properties with dual living capabilities or potential.

In Brisbane these types of properties are believed to sell for 23.4 per cent more on average than ordinary houses in the area, and in Sydney and Melbourne the average price increase is 21.2 per cent and nine per cent respectively.

Those considering being an Airbnb host need to be aware of the changing rules and regulations, from both a tax and zoning point of view, Mardiasmo warns.

"You hear about people getting fined for renting out rooms on Airbnb, due to zoning restrictions," she says."

However, these regulations are inconsistent between councils and states, and can make it hard for people to determine whether what they are doing is okay or not."

"Think about this scenario logically: who wants to buy a granny flat property?

"It has to be a buyer who doesn't mind someone else living in their backyard and the various annoying behavioural traits of each new tenant. That buyer probably isn't a young family, a baby boomer or a young professional couple.

"Most often, granny flat properties only appeal to investors, so to invest in a granny flat property is to sink a heap of money into an asset with a very small basket of future buyers."

Pressley says if you have two investors who each spend $500,000 on property, one on a "specialised" property such as a house with a granny flat and the other on a conventional property, the latter will end up with greater capital growth.

"Ten years pass and the conventional property has grown in value in line with the broader Australian market at six per cent a year and will then be worth $895,000. The smaller buyer pool for the specialised property has resulted in an increase in value by four per cent a year for an end value of $740,000.

"It's not rocket science figuring out which property will make a bigger contribution to that retirement nest egg:'

Woolley believes granny flats can add value to a property - she says this has been the case with every one they've built in Queensland. But she acknowledges that in the area she's servicing to date no one has bought an investment property, built a granny flat and onsold it, so there's no tangible evidence of values improving.

"Most investors are interested in buying and holding; these investments are mainly about the cash flow," she says.

Woolley believes properties with granny flats have good potential for capital growth going forward because there's growing demand for them.

In addition to investors, she says there are plenty of retirees who are building granny flats so they can live in them and then either rent out their house or sell it to their children or grandchildren at an affordable price.

For investors buying a property with an existing granny flat, Graham says it's important to cite the permit and relevant council approvals to ensure it's legal.

An illegal granny flat can lead to fines, he says, and it's also costly to remove and relocate in the event council deem it to be operating illegally.

"Furthermore, granny flats are often only permissible under a 'dependent persons' permit in many zoning areas, in which case they can only be used by a dependent person, such as the elderly, children or people with a disability."

"Once this use ceases the flat must be removed or decommissioned, with the removal of the toilet and stove:"

Stapleton adds that if you have an illegal granny flat rented out on your property and something goes wrong, you won't be able to make an insurance claim, which means you'll be out of pocket for the expenses.

In addition to ensuring the granny flat is legal, investors should also make sure they can get finance for the dwelling, and it's not always easy. Pressley adds that banks have a more conservative credit policy for granny flats and when assessing a borrower's affordability they'll often significantly discount the potential rental income.

They'll often also limit the amount they will lend against granny flat properties.

Pressley says investors are drawn to granny flats due to the higher than normal rental return, but there are caveats to the income, with investors often experiencing longer vacancy periods between tenants because people can be turned off by the thought of having a stranger live in their backyard.

Those tenants who are interested will demand a lower rent, he adds, and investors will also need to factor in the double property management and letting fees for each dwelling.

Stapleton notes there's also an increased risk of conflict between tenants on properties that have granny flats. He explains that it's different to units and duplexes, where tenants are also living in close proximity, because those types of properties are designed to be separate residences, whereas granny flats aren't necessarily.

In many instances, he says, granny flats have been squeezed onto properties that aren't ideal for them in terms of size and layout and it's therefore difficult to separate the dwelling.

"You're building in the backyard of houses and often the tenants are virtually living on top of each other.”

Retirement booster

As a retiree, Steven Fraser is using the extra rent generated from his granny flat in Western Sydney to boost his income.

He added the granny flat about two years ago, after the rules were changed to allow them to be rented out, to a 600-square-metre property he bought in Habersham back in 2007.

Since Steven's granny flat was constructed before the property type really started proliferating, he only paid $85,000 all up for it and is getting $230 per week in rent, equating to a circa 15 per cent yield. This return is the big benefit of having a granny flat, he says, especially because he's retired and is using his properties to generate income.

He says, "you wouldn't be able to build one now at that price", adding that he had great difficulty getting the granny flat delivered because he signed the contract when the granny flat "boom" was just starting and prices were low.

He also points out that investors will pay extra council rates for a granny flat, which eats into the profits — he says he pays $1,200 for rates on the Habersham house and then another $800 for the granny flat. Steven's granny flat is fairly basic; at 42 square metres it has two bedrooms, a kitchen, living area and a shower, basin and toilet, but no added extras.

"These days there are many more granny flat designs available than there were then," he says.

"If I did it again I'd look for something with a pitched roof and verandah. In fact, I'm thinking about putting a verandah on my granny flat now."

In addition to the $230 per week rent Steven is getting from his granny flat, his house is rented for $310 a week, a $10 discount from the market rent due to the granny flat.

Steven paid $167,000 for his Habersham property in 2007 and spent $50,000 renovating it and it's now worth $500,000. But has the granny flat added value? He doesn't think the granny flat has made much of a contribution to the increase; he believes the improvement in value has been largely due to growth in prices in the area and Sydney overall.

Although Western Sydney has been a cheaper area of the New South Wales capital, Steven believes the area is experiencing growth. As prices and rents continue to rise he says affordability will only become more of an issue, with more demand anticipated for granny flats, which are a cheaper alternative.

So far Steven says he hasn't had any conflict between his tenants and he hasn't had any trouble finding renters for his granny flat, with no long vacancies. He adds, however, that many of his tenants have only been short-term, staying about six months, although his latest has become more long-term.

"That's one of the issues with granny flats; it's a temporary thing for a lot of people, so there's a high turnover."

Steven adds that as more granny flats are built, particularly in Western Sydney, the market may become "saturated" and he says this might make it harder to find tenants.

He's considered putting granny flats on his other investment properties, but is hamstrung at the moment, as they can't be rented out in Melbourne and his Brisbane property is too small.

​This week Ipswich and Logan Granny Flats, the expert granny flat builders, bring to you an exciting new update on changes to regulations now allowing larger granny flats to be built in low and medium density areas with the Northern Beaches in Sydney.
 
This will help the issue of housing affordability tremendously, please read and enjoy…

Daily Telegraph | Sarah Swain
April 6, 2016​

Granny  flat-style ‘family flats’, large enough for parents and kids, are set to be created across the northern beaches to tackle crippling rents.

Warringah Council plans to increase the size of secondary dwellings allowed within existing homes to go up from 60sq m to 75sq m.

That is large enough to squeeze in two bedrooms and will be allowed in most suburbs across Warringah.

The plan, also aimed at retirees, came from a proposal by Warringah Mayor Michael Regan in 2014.
He said he wanted to explore the option of creating affordable housing for families by allowing larger, two-bedroom ‘family flats’. The smaller size was more suitable for singles and couples.

He said: “We can address the issue of providing opportunities for families and those who wish to downsize.”

Agent Brian Fairweather, from Ray White, said granny flats are already popular with both homeowners who want to gain an income for a much smaller outlay than an investment property, as well as with families wanting to move to the area.

They can be created for about $120,000 but rent for about $600 a week.

“It’s private and they have their own space. Some people can’t live in the area unless they find something like a granny flat,” he said. 

However, the larger flats will still need a Development Application, unlike 60sq m flats, and will only be allowed in low and medium density spots. Rural areas with larger blocks, like parts of Terrey Hills, are not allowed the developments.
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The plan will go to the State Government.

This week Ipswich Granny Flats, the expert granny flat builders, bring to you an article on ‘property spruikers’ and their hotspot scam that investors are falling victims too – according to the experts.

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This week, Ipswich and Logan Granny Flats, the expert Granny Flat builders, bring to you an article on the Tiny House movement in Australia. With demand outstripping supply, these tiny houses could be the solution in some circumstances, according to the experts…

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Tiny houses may be the solution to Australia’s housing shortage according to Bawley Point builder, Grant Emans.

After 16 years as a builder he caught wind of the tiny house movement which has taken off in America and decided to start building the homes from the South Coast.

He has recently given up building full sized houses to focus his efforts on his new business, Designer Eco Tiny Homes.

“I put the concept out and had a client in Milton who wanted one,” Grant said.

“He’s using it as an office and library space. It’s a new concept and there are only a handful of these in Australia."

“It could be the future of housing,” he said.

The tiny houses come in several sizes, from nine square metres to 60 square metres for the full granny flat.

Each house can be uniquely designed to suit the home it would be sitting alongside and is made from recyclable materials. 

They are governed by the same rules as a caravan in terms of transport, and they do not require council approval to be installed.

The installation process takes 45 minutes.

They are designed with a hybrid power supply, partially solar but also connected to power from the main home’s supply.

They can also be built with bathrooms.

Grant is in the process of setting up a display home at Burrill Lake for people to view if they are considering building a tiny house.

“People can use them for anything,” Grant said.

Usages included on the website include a quick extension for growing families, granny flats for elderly parents, a backyard office, extra space for university students and a home for those building a bigger home who do not want to pay rent, however the options are endless. 

“The biggest size can sleep up to seven people,” Grant said.
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Grant is currently in America at the Tiny House Conference where he hopes to get a sneak peak of the emerging trends in tiny homes and bring these home to apply to his designs.