Granny flats are one of the popular investments available at present and with the strict rules and regulations that applied to the granny flats have been relaxed recently, increasing the popularity of the granny flat amongst the investors. However, the rules and the regulations of the granny flats differ from one state to another and this is why one should always check the rules and the regulations concerning granny flats in the state, where they are planning to invest in the granny flat. There are various advantages and disadvantages of investing in granny flat and one of the common questions from many investors are: how can one get the best ROI from the granny flat. There are various ways one can get the best ROI from the granny flat. To help you out, this article will take a look at how to get the best ROI from the granny flat.
How To Get The Best ROI From Your Granny Flat?
- First of all, the granny flat must be attached to the main dwelling house and it shouldn’t take up too much space in the garden, if one is looking to get the best return from the granny flats. However, granny flats will obviously increase the rental yield of the investor. There is a very high demand of granny flat, after the relaxation of the strict rules and regulations. However, the rental yield will depend on the place where the person is located. In the major cities, it will generate a high yield return, while on the other hand, in the small towns; it is not likely to offer a high yield.
- One should always consult with the local real estate agent regarding getting the granny flat in the property. This is because they know a lot about the target market and whether granny flats have a chance to flourish in the market or not. They will also help you to know if this will increase the value of the property and getting equity from it.
- Another thing you will definitely need to consider is that whether the bank valuation is going to increase the value of the property with the granny flat. Remember that, every type of evaluation will be different. The real estate agents can help with these valuations and also the local bank can help with this.
- One can also get the ROI calculator online to check the ROI. However, the results generated by the ROI are based on the assumption and the input numbers. This result is only an estimate and you should make sure you consult with the financial consultant about this. To use this calculator, you will first need to input the cost that is required to build the granny flat and the rental income per week. You should also include the current mortgage interest rate as well. Then you will get the ROI from the calculator. However, you shouldn’t depend much on the result.