Below is a small selection of some of our recent blogs (written by our Design & Approvals Manager – Wally Gebreal) which provides some valuable advice in relation to everything you need to know about Granny Flats.
NSW is currently experiencing a shortage of affordable housing. While it is impossible to create more land, there will always be back yards available for developing secondary homes, therefore increasing the densities of many suburbs.
With the cost of housing and general cost of living being so high, many have looked at a granny flat as being a more affordable option to help them get into the housing market or generate some income.
The legislation which allows granny flats to be constructed on most residential lots, (Affordable Rental Housing SEPP) was introduced in 2009, so it’s a little early to say whether there is an over or under supply of granny flats.
Given however that there is a hugely growing trend in the number of granny flats being constructed, there is a possibility that there may one day be an oversupply in NSW.
If that does happen, then here are some likely outcomes:
- People will have more choices on which building to rent, hence will be more fussy when choosing
- The more traditional solid built buildings are more likely to attract renters, rather than the cheap looking sheds or garage conversions
- The nicer the building, then the more rent it is likely to attract
One should always consider their current and future needs and objectives when considering building their granny flat. It is important to have the building designed to suit their block, and not choose an ‘off-the-shelf’ design, because when you are building to suit the environment and context of your block, there is no such thing as a standard design to fit all blocks.
Try to build something that will complement the existing house and neighbourhood, and which uses materials that will not date, but will stand the test of time.
By following the above guidelines, then one should not be concerned about whether their building will one day become a statistic. There will always be a demand for affordable rental housing in NSW, so as long as some thought is put into the planning and construction of the project so that it is a quality building, then their building will always be in demand.
The team at Granny Flat Solutions consists of designers, builders, project managers, sales and marketing staff, all of which are trained and experienced in every aspect of design and construction.
We don’t try to sell you a pre-finished design, but rather spend the time with every client to come up with a suitable design that will suit their needs, block and most importantly, budget.
The truth is, there is still a rigorous process of calculations, consultants and documentation required before approval can be granted for a granny flat.
In 2009, the NSW Government introduced the Affordable Rental Housing SEPP to encourage granny flats as a form of affordable housing.
Below is a summary of some of the approval criteria to consider, to determine if a granny flat can be built on your block.
|Lot Size||Min. Frontage||Total Floor Area (incl. ex. house)||Front Setback (non classified road)||Side Setback + formula||Rear Setback + formula||Landscaped Area|
Other things you need to consider include:
- How close are you to any large trees, either on the site or adjacent to the site?
- Does your property slope towards the rear? If so how will the stormwater be connected?
- Are you building over or near a Main Sewer Line?
- Is your property Flood, Bushfire or Heritage affected?
When the site does not comply with even one of the criteria of the SEPP, all is not lost. There is still an opportunity to lodge a Development Application with your local council.
If you are unsure if your block is suitable for a granny flat, don’t take any chances. Make sure to seek the advice of an expert in this area.
However, house prices in Sydney are again increasing to a level where its housing market is one of the most expensive in the world. (1). This places a strain on many people wanting to own their own home, and makes affordable housing options more difficult for low income earners, families, the elderly and students to find accommodation they can afford.
In 2006 census data showed that more than 50% of all households in NSW were experiencing housing stress. Exacerbating this situation, households in NSW are growing faster than Australia’s projected population growth and will increase from 7.4 million in 2001 to between 10.2 and 10.8 million in 2026.
It is predicted that households in private rental housing will increase by 80% to 3.3 million by 2045.
People aged over 65 or low-income rental households will increase from 195,000 in 2001 to 419,000 by 2016.
Over half will be sole person households and two thirds women. The proportion of lower-income private renters experiencing housing stress is predicted to increase by 120%.
Escalating rent and house prices in NSW are placing very low to moderate income earning households into housing stress, and in many cases housing crisis, affecting a diverse range of households in our community in all sectors and industries.
So welcome the idea of Granny Flats- If you have enough equity in your property or some savings, an investment of around $100,000 will create a two-tier impact on the economy:
- Firstly it will provide affordable rental housing in areas which may have in the past been too expensive to live in; and
- With a shortage of rental accommodation, it would add extra money in your own pocket each week./li>
That small investment of $100,000 @ say 6%pa, and with a rental return of approx. $350 in Blacktown, $400 in Parramatta, $480 around Hornsby, or $600 in the Northern Beaches, means a healthy return on your investment! (5)
Property Investors take note: the above figures are real and proven. You can earn extra income each week, while providing housing which is affordable for couples, executives, singles, in-laws and immediate or extended family.
The lack of affordable rental housing, and high Sydney house pricing crisis, IS real.
Granny Flats are a fast, easy and real solution to provide affordable housing.
Call Granny Flat Solutions today on (02) 9481 7443 or go to www.grannyflatsolutions.com.au for more information.