Granny flats are in high demand, especially in the current real estate environment. They offer homeowners a chance to stay in a home they love without worrying about their children growing up in an area of high crime rates. In addition, they allow you to save for your kids’ education, giving you time to be a mom and work/work at home while your kids are young. Granny flats are ideal for retirees, those with children, and those who own rental properties. Let’s explore the benefits of owning a granny flat.
One benefit of purchasing granny flats is immediate tax depreciation. Currently, granny flats may give a return of as much as $350 a week. With an immediate tax deduction of more than half, it’s genuinely your most significant investment choice out there today. Another advantage of constructing a granny flat is familial closeness.
With two or more family members, the investment value of a granny flat could grow substantially. As rental income increases, the profit from the investment property also grows. You are building a cash flow that will pay off when you eventually sell the house. The two primary benefits of building a granny flat are; the immediate tax deduction and the familial closeness. It makes this type of investment property a wise financial decision.
When you decide to build a granny flat, you will have a lot of flexibility regarding the location of your property. For example, if you live in an area that experiences a lot of rain or sun, you can rent it during the hotter times of the year. However, if you live in a less humid area, you will want to rent the granny flats out during the colder times. The decision is entirely up to you and depends on how much control you want over your living situation.
The second main benefit to owning granny flats South Australia is the immediate rental income. It is tough to invest your money into something that will not provide you with a rental income. Building a rental income from these dwellings allows you to save up for that vacation home or put a little extra money into the family budget. It’s a great way to supplement your retirement savings or create an additional income stream that will continue even as you age.
The third benefit to investing in granny flats is the long-term potential for rental income. Even with an economy that has suffered in recent years, many people are still willing to rent their properties. It means that the price of a granny flat in your area should always be a good value. In many cases, it will be more valuable than your average single-family home. Even if it never moves up in value as much as your own home, renting your property for a reasonable price gives you financial freedom for many years to come.
The fourth benefit to owning a granny flat in your community is the extra space you gain by renting it out. If you have two children, you may only have room for a home office, but there is no need to buy a home office if you don’t. Instead, you can rent it out for extra space. It could potentially allow you to raise your home office rent, which will add to your savings each month. It also allows you to expand your home office by putting in more storage or other valuable additions.
Investing in granny flats for the elderly parents in your life makes good business sense. They need somewhere to live while their children are young, and they need extra space after they have moved out on their own. You will be able to take advantage of the rising housing prices by renting it out to renters, and as it becomes more affordable for families to live in, you can raise the rent and make an even bigger profit. In this economy, a win-win situation is ideal. Your elderly relatives will have somewhere comfortable to live while you save money.