Granny Flats Provide Additional Income AND Increase the Value of Your Property
The NSW Government has made granny flats, easier and faster to build. The aim is to help mums and dads create a place for those who need a space of their own, like elderly parents or those generation Y children who haven’t yet left home. These secondary dwellings also give families the chance to use a Granny Flat as a source of additional income in these challenging economic times.
Keyland Granny Flats – Affordable Housing AND an Investment
Pays itself off in 5-7 years
Provides a projected return on revenue of 15%-18%
Increases the Value of your Existing Property
The Approved Uses of a Granny Flat Include
- Investment Opportunity – Earn an Ongoing Rental Income-Stream and also add Real Value to your Current Property.
- Increase Rental Income – By Adding a Second Dwelling to an Existing Investment Property
- Home Office Opportunity – End the time and headaches involved with traveling to work and create a Modern and Private Home Office right on your own block.
- Teenager Retreat – Teenagers love a private place to relax. Which then becomes a source of rental income once they move out (or before)
- Caring for Elderly Family – If you don’t want your loved ones to put in a home, but they need to be looked after without losing their independence. A granny flat is a great residence for elderly parents.
- More Space for You – Is sewing, art, crafts or woodwork one of your hobbies? A granny flat is a perfect space to carry out these passions without interfering with any house space.
- Increased Equity – Maximize your Property’s Total Value by adding another Quality Dwelling to your Block
- Increased Income – Double your rental return on Investment Properties by building a Granny Flat. In some instances where the original house is dated, our stylish modern Granny Flats can bring you just a many financial returns a the main house.
- More Room to Live – Create awesome extra living space. Whether you need additional accommodation for friends and family, or just more room to move, a Granny Flat is the answer to more space without changing your existing home.
- Financial Advantages – Create great tax advantages as Granny Flats are geared as Investment Properties.
- Look after your Tribe – Create a Space for Extended Family.
How Much can You Earn from a Keyland Granny Flat?
Return on Investment (ROI)
If you live in your own home, you can install a Granny Flat in your backyard, and collect a stream of cash from the granny flat rental.
Or you may be in a situation where you want to live in the Granny Flat and rent out the main dwelling… The choices you have in collecting an incredible additional income is only limited to your imagination. You will be AMAZED at the high net returns.
Example Income from a Keyland Granny Flat
Low-Risk and High Return
Building a Granny Flat on your existing investment property is easy and low-risk. And it provides the highest increase in the value of your property AND in your rental income.
It is very rare to find an Investment option that is both Low-Risk and High Return
Here’s an example to illustrate the benefits
- Greg and Sarah currently own an investment property worth $450,000
- They rent it out for $425 per week, or $22,100 per year
- So they get a yearly rental yield of 4.9% of the property value
- Greg and Sarah build a Granny Flat on their property, for a turn-key cost of $85,000.
- They rent out the Granny Flat for $275 per week, or $14,300 per year
- So for the Granny Flat alone, they get a yearly rental yield of 16.8%
- Furthermore, they now get a combined rental income of $700 per week from their property, or $36,400 per year.
- And because of this, their property would now be expected to be worth at least $600,000 if they were to put it on the market
That is their current situation. Now let’s look at the costs and returns of adding a Granny Flat
That is an incredible growth in the value of their investment property. For $85,000, they have increased the value of their property by $150,000. The increase in value is about 3 times the amount they spent.
Where did they get the $85,000 to build the Granny Flat?
Greg and Sarah may have used their own funds to pay for the building of the Granny Flat. And if so, they have gotten an excellent return on their investment. The growth in their property value speaks for itself.
But an even easier way for them to finance the Granny Flat construction would be to borrow the $85,000, using the investment property or their own home as the security for the loan.
The rental income from the Granny Flat will easily cover the extra loan repayments for this additional borrowing.
And the best part is, the combined rental income from the house AND the Granny Flat will often cover the entire loan repayments, so now the property is paying for itself. Complete the Form to see how much YOU can borrow against your existing property.
Let’s review the investment benefits of building a Granny Flat
- Low cost when compared to purchasing a new property
The extra rental income from the Granny Flat can pay back the loan used to build it
The increase in total property value can be many times the initial cost of building
* All dollar amount are examples or estimates only. Exact amounts will depend on your land size and situation, as well as the property market conditions in your area.