Building an Urban Vs Rural Granny Flat

Homeowners across the country have untapped potential in their backyards. A recent report identified more than 500,000 sites in capital cities where Granny Flats could be built to ease the housing crisis and put more money in homeowners’ pockets. In urban residential areas, it’s easier than ever to build a second dwelling and reap the advantages. However, Granny Flats don’t just offer benefits for city-dwellers. Rural landowners can also benefit from the extra income and social benefits a Granny Flat brings.

Let’s explore how the renewed interest in Granny Flats as an affordable housing solution can benefit both urban and rural communities and look at why location matters, the benefits of both settings and the key design challenges of urban and rural Granny Flats.

What is a Granny Flat?

Granny Flats, also known as accessory or secondary dwellings, are self-contained living spaces on the same lot as a primary home. They can be attached or separate to the main home, but they can’t be subdivided and sold separately.

Although a report into alternative housing models for low-income older Australians found Granny Flats are an ideal solution to improve access to stable, affordable housing, they aren’t just for grandma. They can be used to house teenage children or family members with special needs, rented out to tenants or improve the rental yield of an investment property, used for home office space, or provide the extra living space a family needs.

Why Location Matters for Granny Flats

Granny Flats have seen renewed interest in recent years as homeowners seek to add extra living space to their homes and investment properties. However, their location is an important consideration in fulfilling their income-producing potential. Homeowners and investors in urban areas can gain the most financial benefit from a Granny Flat on a property located close to amenities.

Even on a rural property where off grid living and lifestyle benefits may be the main drawcards, accessibility is an important consideration. Construction costs in a rural location should also factor into design considerations and zoning rules may dictate what’s possible to some extent.

However, as authorities recognise the benefits of secondary dwellings, regulations are changing to allow the best use of space in rural locations.

Granny Flats can ease the pressure on downsizers in rural locations by allowing them to stay on their property and embrace multi-generational living or benefit from a passive source of income. Therefore, nearby amenities and accessibility modifications should also be a consideration for rural Granny Flat builders.

Building a Granny Flat in Urban Areas

From planning to design and location, let’s look at what to think about before building a Granny Flat in an urban area.

Benefits of Urban Granny Flats

Granny Flats located in urban areas close to amenities like transport options, hospitals and schools will always be in demand. A 2-bedroom Granny Flat can add 32% to the value of an existing dwelling.

By offering convenience and providing residents with everything they require, an urban Granny Flat is a worthwhile investment that’s likely to provide a better rental yield, as well as being a valuable housing asset to the community.

Challenges of Urban Granny Flats

Not every block is suitable for a Granny Flat. They need to meet planning regulations, setback requirements, land size restrictions and the footprint of the existing property must allow space for the development of a second dwelling.

A Granny Flat should also complement the architecture of the existing home and community where possible, using similar construction materials to ensure it doesn’t detract from the main home.

Key Design Considerations in Urban Areas

Both homeowners and investors would do well to consider that a Granny Flat can net an additional 22% in rent each week, boosting the gross yield of a property by 1 percentage point.

A flexible design that uses space efficiently offers all necessary facilities and uses durable materials and high-quality finishes ensures your investment will appeal to a wide market and suit a variety of uses.

Building a Granny Flat in Rural Areas

In a rural setting, especially on acreage, a Granny Flat can be a private oasis for its residents, but if not well-considered, opportunities can be missed.

Benefits of Rural Granny Flats

Granny Flats can enhance the value of a property and contribute to increased equity, improve the rental yield of investors, create a passive source of income for homeowners and allow for multi-generational living arrangements.

In a rural setting, Granny Flats used for short-term stays can attract tourists to the community, they can allow property owners to stay on their land and gain help with the upkeep of their property, and they can be used as extra living space that makes the most of the natural surroundings (for example, an art studio). Granny Flats in these settings often provide greater privacy and, depending on local council planning schemes, can often be constructed on a greater scale than in an urban setting.

Challenges of Rural Granny Flats

Some of the challenges that building a Granny Flat in a rural area poses include a higher cost to connect to utilities, distance from amenities such as hospitals, access to transportation, and overcoming zoning challenges.

Rural Granny Flats should aim to make the most of the natural landscape by capturing views, for example, so this should be carefully considered during the design phase. They may require extra design features or be restricted in the materials used if they are positioned in bushfire-prone areas.

Key Design Considerations in Rural Areas

Embracing the local environment and designing accordingly is key when building a Granny Flat in a rural area, as is sustainability.

Off-grid power options, smart water management systems, landscaping that embraces the natural environment and an open-plan layout are all practical moves that will help your investment stand the test of time.

Urban vs Rural Granny Flats: Pros and Cons Summary

Pros of Urban Granny Flats:

• Income-generating prospects are high. Provided the Granny Flat is close to amenities, it will always be in high demand in the rental market.
• Supports multi-generational living. From supporting elderly or high-care family members to teenage children, your family can be close by while remaining independent.
• Reducing urban sprawl. Granny Flats can make the most of the unused space in a backyard and help to reduce housing pressure in high-demand areas.

Cons of Urban Granny Flats:

• Reduced privacy in primary residence. Not everyone will be looking for a home with close neighbours, which can be hard to overcome if you decide to sell your property.
• Not suitable for all blocks. Granny Flats require an adequate land size and must adhere to residential design codes. Check your Granny Flat site here.

Pros of Rural Granny Flats:

• Helping downsizers stay on their rural properties. By taking in family members or tenants who can help with the upkeep of rural properties, family homes can be preserved.
• Reducing the reliance on the ‘bank of mum and dad’. Because they can often provide a more private setting, a rural Granny Flat is a great way to support children in a tight housing market.
• Flexible use. Granny Flats can provide a space to work from home instead of commuting, they can accommodate a home gym or be used for hobbies such as arts and crafts.

Cons of Rural Granny Flats:

• May be limited in income-generating capacity. This often depends on a Granny Flat’s proximity to amenities that renters require.
• May not be suitable for elderly and young family members. Access to amenities, support services and employment may limit the use of a Granny Flat in a rural area.

Your Granny Flat Solution, from Illawarra to the CBD!

Whether you live in the city or a rural area, a Granny Flat is an ideal way to meet growing housing demands. What are you waiting for? Granny Flat Solutions can help you find the right property to build a second dwelling. Or, if you’re currently a homeowner, we can assess your site to check if it’s suitable for a Granny Flat. Visit our website or contact us today on 1300 160 320 to get started building your dream Granny Flat!