With rising rents, greater demand for available homes, and expanding families, granny flats have become the fastest-growing trend in the building and housing industries. Because of this, granny flats are becoming increasingly popular among 2023’s residents. However, please define a granny apartment for me. and what makes granny flats so different from conventional homes? Learn all you need to know about granny flats in 2023 with the help of our comprehensive guide that covers everything from the definition of a granny flat to the reasons for its rising popularity.
What is a Granny Flat?
A granny flat, or secondary housing, is a small dwelling attached to or on the same property as the primary residence. The main house and the accessory living unit have the same legal description. These apartment layouts are flexible and functional since they may be used as a secondary dwelling for a growing family or as a rental property.
How Big is a Granny Flat?
Granny flats are often restricted to a maximum floor space of 60m2 by local governments since they are meant to be smaller than the main house on a property. The layout and construction of a granny flat, however, can be tailored to the homeowner’s preferences and the available space on the land. They may be constructed to resemble your current home and come in both one- and two-story layouts.
It is important to research the rules and criteria of your municipality before breaking ground on a granny flat. You may need to maintain a certain distance from your property line, for instance. If you want to be sure you’re following the rules, it’s best to get in touch with the local government.
Granny flats are a great option for homeowners who want to make the most of their property but are limited by its size. A granny flat may be a pleasant and functional place to live if it is designed with care.
How Do Granny Flats Stack Up Against Other Types of Tiny Houses?
Different types of micro-apartments look similar at first glance, but there are important distinctions to make. You should weigh your alternatives carefully to choose the smallest place to live that meets your financial and practical requirements.
Building a granny flat, or accessory housing unit, in the backyard of an existing home is a common solution. A tiny house is an alternative; it’s a compact, movable home that may be set up in various places. A park home, which is similar to a mobile home, is a smaller house that is permanently parked in a specific area, such a park or neighborhood.
Granny flats should be compared to other compact dwellings on a range of criteria including price, size, portability, and flexibility. Granny flats are a great middle ground between tiny houses and park homes in terms of price and square footage. The placement of your granny flat is less of a constraint with compact residences and park homes.
The ideal option for your home is one that serves your unique requirements and vision. You may find the ideal solution for your needs in a tiny dwelling by giving it some thought and doing some study.
Why Design Granny Flats for Rent?
These homes are ideal for providing for aging loved ones without compromising on their autonomy, as we’ve already discussed. But this isn’t the only factor that attracts investors to granny flats.
The value of your home might be raised by installing them. In fact, a granny flat may add as much as 30 percent to the value of a home.
These accessory dwelling units can be added to your primary residence without incurring any additional costs for land. In addition, granny flats might be a fantastic way to earn extra money without doing anything. In the United States, 43.6% of households are rental rather than owner-occupied. There are many potential tenants who would appreciate and enjoy your granny apartment.
Renting out your granny flat might help you cover some of the expenses associated with maintaining your primary residence. If you already have an unused granny flat on your property, this is a fantastic option to consider.
However, you need to plan your granny flat design wisely if you want to get a good return on your investment. Confused about where to begin? Then keep reading to learn the five most important considerations when drawing up plans for a granny flat.
First and foremost, consider your financial situation and the sort of budget you have to deal with. This is useful for budgeting purposes while you plan the design of your granny apartment.
The total price of your project may also be affected by the following:
- The required quantity of power outlets
- What you use for walls, ceilings, and floors is up to you.
- What you’ve done with the kitchen and bathroom (particularly in terms of fixtures)
- Your desired bedroom count
- The people you choose to do your task
You need to make sure your final product is of high quality. Therefore, if you are working with a limited budget, choose efficiency above frills. Trying to achieve too much while not investing enough money will lead to failure.
Granny flat floor layouts might be considered once you have an idea of the maximum size of the granny flat you can afford. We’ve previously gone through the necessities for your apartment:
- A cooking area
- Bathroom
- Combination living/dining area
- Single or double occupancy
Most layouts now have open concept kitchen, dining, and living rooms to better use available space. If allowed by the local zoning office, some floor layouts may even incorporate a loft that may be utilized as extra sleeping or storage space.
Many seasoned ADU firms will provide you with several floor plan examples to choose from. These should, however, be adaptable to your particular circumstances.
Make your apartment accessible for those using wheelchairs, for instance. If you have a clear idea of what you want from the beginning, it will be lot less of a hassle to include into the layout.
Before committing to a strategy, carefully consider your needs and communicate them to the organization you’ll be working with. It’s amazing how much they can cram in there!
You may now begin constructing your granny apartment when you have finalized the necessary architectural plans. The ability to do so is much beyond the scope of most people’s expertise.
Luckily, skilled artisans are available to assist you in giving form to your vision. Maintaining communication with them is crucial.
DIY projects often look like a good idea at the time because of the potential cost savings. Building your own granny flat might save you money in the long run, but it could be a risky and time-consuming endeavor if you don’t have the necessary knowledge.
Always do your homework on a potential partner. Feedback from former customers is a great indicator of whether or not a company lives up to its claims.
Again, this may seem like a chance to save money, but you should give it some serious thought before acting on it. You truly do get what you pay for when it comes to skilled craftsmen. Spending a little more money up front for assurance of a job well done may save a lot of trouble in the long run.
If you hire an ADU construction firm before beginning work on your granny flat design, they will be able to assist you find out what kinds of rules and regulations are in place in your area. This is crucial information. You definitely don’t want to waste tens of thousands of dollars on a piece of land that will eventually have to be demolished. Something we’ve seen before, and perhaps too often.
Check your local regulations since these may differ from state to state. The size of the granny flat you may construct, for instance, may be limited. In addition, there are certain states that restrict building permits to properties inside certain zone restrictions.
You may always contact the city hall or planning department to learn more about the specific regulations that apply to construction in your region.
It’s important to think about the finished look of your granny flat when you’re designing it. This might be useful when thinking about the building’s location and layout. The materials you use in construction may be heavily influenced by the desired interior design.
If you’re looking for something ultra-contemporary, for instance, you’ll probably settle on a combination of white wood and metal. Your granny apartment will look more authentic if you choose dark colors and natural materials like stone.
When drawing up granny flat designs, choose on a layout and adhere to it. Making abrupt changes to your design as you move through a structure will cause chaos.
A seasoned real estate developer will be pleased to talk over your design ideas with you if you’re having trouble figuring out how to bring them together. They will make sure your final design incorporates everything you need.
What are the tax implications of a granny flat investment property?
Granny flat rental revenue is subject to taxation, so keep that in mind if you want to use it to supplement your income. Income tax brackets and marginal tax rates determine how much tax must be paid.
Whether your granny flat investment is favorably or negatively geared will determine the tax benefits you can receive. Granny flats can be negatively geared if the rental revenue they generate isn’t enough to cover the cost of maintaining the property (including loan interest payments and other ongoing expenditures). In this case, the loan interest payments and other ongoing expenses are tax deductible. However, owners of non-negatively geared properties can deduct just the cost of routine maintenance from their taxable income.
You can deduct the annual decline in value of your granny flat from your taxable income. Keep in mind that the rental income from your home may subject you to Capital Gains Tax (CGT).
Constructing a Granny Flat: Some Suggestions
Let’s say you’re set on starting the building project. How does one go about constructing a high-yielding granny flat?
Some advice is as follows:
- Get Permissions in Advance. Getting the necessary permits from the city council is a prerequisite before beginning construction. In most cases, you’ll need to submit applications not just to build, but also to cover utility lines. Land constraints may also need to be taken into account. Plan everything out beforehand so you don’t have to stop construction because you forgot anything essential to comply with the law.
- Make a reasonable spending plan. It’s conceivable, as with any construction job, that unforeseen costs will arise and force you to go over budget. Estimate the cost of building the apartment. Then, set aside an additional ten to twenty percent of your total budget for contingencies. As a result, you won’t have to worry about the drawback of over-capitalization.
- Identify Competent Contractors. You might think that any construction company might help you develop a granny apartment. However, it is usually advisable to use professionals that focus on this kind of building. These contractors have a more in-depth knowledge of the rules and regulations that pertain to granny flats. In addition, they are more likely to adjust to your needs. Find a builder who has already completed successful granny flat projects.
- Use astute design decisions. Granny flats are often small in size since that’s how they’re meant to be used. Use circular tables and incorporate bookshelves into walls and dividers to make the most of the available area.
What are the types of granny flats?
The phrase “granny flat” really encompasses a few different types of dwellings. Listed below are the two primary categories of ADUs: freestanding and attached.
- Repurposing a garage. The term “garage conversion” is used to describe the practice of converting a garage into a granny flat. A garage conversion can serve as a home office or an artist’s studio if the relevant local licenses are obtained.
- Over the carport. Instead of renovating the current structure, you will add a granny flat on top of the detached garage. A detached granny apartment is the end product, saving you from having to give up your garage.
- Basement or loft. These accessory dwelling units are built within your main house, rather than beside or behind it. Making space for a granny apartment in your home’s basement or attic. Building an ADU in the attic is typically more expensive than in the basement. The construction procedure may be more difficult than that of a separate ADU.
- Separate and distinct. The structure in question is a regular “detached ADU,” or DADU. It’s a standalone home that isn’t connected to anything else on your land. This standalone structure is usually built in the backyard.
The Last Word
You might be able to get into the real estate market with the help of a solid granny apartment. You should know the benefits of constructing a granny flat, but also its potential negatives. There is a smaller pool of potential buyers for a house with a granny apartment. You also can’t approach it with a “get rich quick” mindset.
Keep in mind that even a modest property, such as a granny apartment, is still property. Tenants are looking for a place they can call home. If the building is of low quality and lacks seclusion, you may have a hard time making a profit.
But if you play your cards well, you may reap substantial rewards. Due to the lack of affordable accommodation in Floirda, many renters are turning to granny flats. You may take advantage of that market without having to spend a fortune doing so.