With the boom in the Sydney property market sending housing affordability skyrocketing over the last 12 months, granny flats also known as secondary dwellings have become increasingly popular investments. The great Australian dream of homeownership for Gen-Yers is becoming a major feat which has seen some parents generously invest in a granny flat.
Catching wind of the increasing demand for secondary dwellings with the interest rates at a historically-low 2.0%, we can thank the NSW state government for simplifying the approval process. Offering investors a bypass of council approval through ‘complying developments’, the Department of Planning and Environment can now offer approval with a proposed 10-day turnaround. How exciting! no more council applications….
There are a few condition though which can be found here, so make sure to get all the facts before drawing out boundaries on Mum & Dad's back lawn.
We have increasingly seen the impacts of the Affordable Rental Housing- State Environmental Planning Policy (SEPP) in the local Macarthur property market, with traditionally larger size blocks being snapped up. Director Graeme Paddock confirms that “more than 50% of local properties sold within the past few months have boasted granny flat potential”.Encouraged by the record-low interest rates and attractive rent potential, buyers are getting more bang for their buck than ever before- investment yield that cannot be surpassed. Graeme’s advice to buyers in increasing the value of their investment is to preferably “invest in either a corner block or a block with vehicle side access, this will offer you the opportunity to construct a carport and the convenience of a separate frontage, improving the property’s market value in the long run."