Granny Flat Gold: Investment Hotspots In Sydney, Melbourne & Brisbane
Granny Flats, those versatile secondary dwellings that have gained immense popularity over the years, are not just for grandma anymore. From offering extra rental income to accommodating adult children and easing the housing shortage, putting a second house on your block offers numerous benefits. Right across the country, homeowners are seeing the development potential in their own backyards.
This article explores the rising trend of building granny flats and their economic benefits in Australia’s largest cities: Sydney, Melbourne, and Brisbane. With CoreLogic data and insights from Granny Flat Solutions, you can discover the top suburbs to consider for these valuable property additions.
Sydney’s Top 5 Granny Flat Hotspots
Sydney offers a plethora of opportunities for homeowners with its diverse property landscape. According to a recent report by CoreLogic, Archistar, and Blackfort, the following Sydney suburbs stand out for potential granny flat development and could help ease the housing supply shortfall.
1. Baulkham Hills
Nestled in the heart of Sydney, Baulkham Hills is an appealing location for Granny Flat investments. Its proximity to major working hubs, excellent transportation options, and a thriving community make it an ideal choice for savvy property investors. Baulkham Hills offers the perfect blend of urban convenience and suburban charm, providing a strong foundation for the growth of Granny Flat investments in the area.
2. Castle Hill
With a robust demand for housing and a steadily growing population, Castle Hill’s property market is a goldmine of opportunities for those interested in Granny Flat investments. This vibrant suburb in Sydney’s northwest boasts a range of amenities and a strong community spirit. As the real estate landscape in Castle Hill continues to flourish, investors have a chance to maximise their property portfolios through strategic Granny Flat developments.
Nestled in Sydney’s northwest, Cherrybrook offers a tranquil and family-friendly environment, making it an attractive option for those considering multi-generational living with the help of granny flats. The suburb’s peaceful ambience, excellent schools, and proximity to natural attractions contribute to its desirability. By capitalising on the growth of granny flat investments in Cherrybrook, homeowners can enhance their property values and accommodate family members comfortably.
Carlingford, with its strategic location and growing demand for housing, provides a promising landscape for Granny Flat investments. This suburb in Sydney’s northwest offers an excellent blend of convenience and community. Investors can harness the potential of Carlingford’s property market by exploring Granny Flat opportunities that cater to the rising demand for supplementary rental income and housing options.
5. West Pennant Hills
West Pennant Hills is an idyllic location for Granny Flat investments, characterised by its leafy streets and community-oriented atmosphere. The suburb, situated in Sydney’s northwest, offers a compelling mix of tranquillity and accessibility. As the property market in West Pennant Hills continues to evolve, investors can seize the opportunity to boost their investment portfolios by developing Granny Flats that cater to the growing need for additional housing and rental income.
An Affordable Accommodation Option for Sydney Residents
Each of these Sydney suburbs presents unique prospects for granny flat investments, driven by factors such as location, demand for housing, and the desire for multi-generational living arrangements. By understanding the individual strengths and features of these areas, investors can make informed decisions to unlock the hidden property potential within Sydney’s diverse real estate landscape.
Top tip: A second dwelling with multiple bedrooms is an attractive rental housing investment due to comparatively low upfront costs. See our article Maximising Your Real Estate Investment: A Comparison of Investment Property vs Granny Flat for more information.
Melbourne’s Top 5 Granny Flat Hotspots
Melbourne, known for its diverse culture and lifestyle, offers promising opportunities for granny flat construction. Some top suburbs include:
1. Glen Waverley
Glen Waverley, located in Melbourne’s southeast, is a thriving suburb that offers an ideal setting for Granny Flats. Its proximity to major employment hubs, efficient transportation options, and a vibrant community make it a prime location for those interested in granny flat investments. The allure of Glen Waverley is further enhanced by its diverse range of amenities, making it a hotspot for property investors looking to tap into the potential of Granny Flat development.
With a strong demand for housing and a steadily growing population, Rowville’s property market is brimming with opportunities for Granny Flat investments. This dynamic suburb in Melbourne’s southeast boasts many amenities and a strong sense of community. As Rowville’s real estate landscape continues to flourish, investors can bolster their property portfolios through strategic Granny Flat developments.
Nestled in Melbourne’s southeast, Berwick offers a serene and family-friendly environment, making it an attractive choice for those considering multi-generational living with Granny Flats. The peaceful ambience of Berwick, coupled with excellent schools and proximity to natural attractions, adds to its desirability. By harnessing the growth of Granny Flat investments in Berwick, homeowners can elevate their property values and provide comfortable accommodations for family members.
Rye, with its strategic location and surging housing demand, presents a promising landscape for Granny Flat investments. Situated in Melbourne’s southeast, this coastal suburb offers a desirable blend of convenience and community. Investors can leverage the potential of Rye’s property market by exploring Granny Flat opportunities that cater to the rising demand for supplementary rental income and housing options.
5. Doncaster East
Doncaster East is an idyllic location for Granny Flat investments, characterised by its green spaces and close-knit community. This suburb, situated in Melbourne’s northeast, offers a compelling mix of tranquillity and accessibility. As the property market in Doncaster East evolves, investors can seize the opportunity to enhance their investment portfolios by developing Granny Flats that cater to the growing need for additional housing and rental income.
Backyard Granny Flats Are Well Worth the Investment Cost
From proximity to transport options to family-friendly neighbourhoods, each of the above suburbs has plenty to offer renters and investors alike.
Top tip: Design a Granny Flat with a flexible layout to boost the resale value of your home. Potential buyers may prefer to see the space used for a home office or gym, for example.
Brisbane’s Top 5 Granny Flat Hotspots
The Brisbane LGA, with its sunny climate and growing population, is ripe for Granny Flat investment. Some top Brisbane suburbs to consider are:
1. The Gap
Being just a few minutes’ drive from the CBD, the Granny Flat hotspot potential here is obvious. Nestled in the picturesque surroundings of Brisbane, The Gap is a suburban paradise that offers an ideal setting for Granny Flats. Its lush greenery, tranquil ambience, and proximity to the city centre make it a prime location for those interested in Granny Flat investments. The Gap is characterised by its natural beauty, and investors can capitalise on this serenity to create comfortable and appealing Granny Flat accommodations that cater to various needs.
2. Alexandra Hills
With a growing population and a strong demand for housing, Alexandra Hills is an area ripe with opportunities for Granny Flat investments. This suburban gem in Brisbane boasts a sense of community and a range of amenities, making it an appealing destination for those looking to explore the potential of Granny Flat development. Investors in Alexandra Hills can take advantage of the area’s growing property market to enhance their portfolios and provide additional solutions to the housing crisis.
3. Redbank Plains
Redbank Plains is fast becoming a hub for Granny Flat investments. With an increasing population and high housing demand, this suburb within the Ipswich council area offers a promising landscape for property investors. Its strategic location and community amenities make it an attractive destination for those seeking to explore the world of Granny Flats. By tapping into the potential of Redbank Plains, investors can take steps toward improving their financial portfolios and meeting the growing needs of the housing market.
4. Albany Creek
Situated in the northern suburbs of Brisbane, Albany Creek is a serene and family-friendly environment, making it an attractive choice for those considering multi-generational living with the assistance of Granny Flats. The peaceful ambience of Albany Creek, combined with excellent schools and proximity to natural attractions, enhances its desirability. By harnessing the growth of Granny Flat investments in Albany Creek, homeowners can elevate their property values and provide comfortable accommodations for family members.
5. Rochedale South
Rochedale South, with its strategic location and burgeoning housing demand, presents a promising landscape for Granny Flat investments. Located in the southern suburbs of Brisbane, this suburb offers a desirable mix of convenience and community. Investors can leverage the potential of Rochedale South’s property market by exploring Granny Flat opportunities that cater to the rising demand for supplementary rental income and housing options.
Granny Flat Flexibility Makes Them An Ideal Housing Solution
Understanding the strengths of a suburb and why people want to live there will help you determine the investment potential of a second dwelling. Consider whether you’re looking to reduce living costs and ease affordability pressures for family members or address housing shortages and plan your layout accordingly.
Top tip: Consider the ongoing cost of a Granny Flat and how you will manage expenses such as insurance and utilities. For more tips on what to consider when building a Granny Flat, see our article 7 Common Mistakes to Avoid When Building a Granny Flat.
The Economic Benefits of Granny Flats
Investing in a Granny Flat isn’t just about creating extra living space; it’s also a smart financial move.
The CoreLogic research indicates that Granny Flats can significantly impact your property’s value and income potential. Adding a Granny Flat to your property can increase your weekly rental income by up to 22%. Furthermore, it could add as much as 32% to your property’s overall value. This makes Granny Flats an attractive option for homeowners, investors, and those seeking additional income.
When planning a Granny Flat development, consider its proximity to transport options such as railways, bus routes and major road networks. Also, consider current and future infrastructure and the location of essential services such as a hospital. For more on the financial benefits of Granny Flats, read 8 Ways to Earn Additional Income From Your Granny Flat.
Building a Granny Flat: Regulations and Feasibility
While building a Granny Flat is appealing, not all properties are suitable for such an addition. Not only do building regulations and planning requirements vary from state to state, but they also vary in different council areas within each state.
Your initial checks on the viability of building a granny flat should include checking zoning regulations, overlays, and land areas. Not only does the overall size of your block matter, but home position requirements, frontages and setbacks will also determine if you can build a second dwelling on your block. Your final step should be to delve deeper into your local council’s town planning guidelines for any specific requirements they have.
However, choosing the right builder who takes care of the planning and permits for you can make the process much easier. In NSW, if you’re looking to build a Granny Flat in the Sydney Metro, Central Coast, or Illawarra region, Granny Flat Solutions can advise you of the site requirements as a part of our free site assessment and quote.
Unlock the Full Potential of Your Property
In conclusion, Granny Flats are more than just additional living spaces. They’re a strategic investment for property owners, providing rental income, increasing property value, and contributing to the housing needs of multi-generational families.
With the data from CoreLogic and the insights provided in this article, you can identify the best suburbs in Sydney, Melbourne, and Brisbane to unlock a property’s full potential with a Granny Flat development.
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