Does a Granny Flat add value ?

[Katz]

Hi everyone,

We need more room in our current 3 bed , 1 bathroom house, We have decided against moving so options are an extension or adding a detached granny flat.

Due to the nature of our current house (e.g. Cathedral ceiling,) extending outwards will be difficult and more to the point costly. As such a granny flat would be a much cheaper option.

However, I was wondering about the resale value. Now I assume that a properly done renovation would of course add significant value to the resale value of a property. However, I was wondering if a granny flat adds much value. Does anyone have any experience in this area ?

 

[lizzie]

can't comment on the resale as i don't know, but i do know where you're coming from with the "extra" room.

when we were looking for our current ppor we looked at a lot of properties in great locations but to small (we needed 5 bedrooms!). one option we looked at for several of the properties was to build a new large double garage with a two bedroom flat on top for the older teens (20 and 18) to live in ... but then we found this house.

i still think the flat on top of the garage is a great idea, especially if you've got older kids at home. they have their own space to hang out in and are responsible for their cleanliness etc, they can cook if they want and entertain without imposing or feeling imposed on - and then when they leave (10 years later) you can always rent it out to a couple of uni students ...

 

[WinstonWolfe]

In my view, the granny flat won't add that much to your property as far as a valuer is concerned, unless it appears to be an integrated part of the original design and is done to a high standard. So just sticking a box down along the back fence won't do much.


However, when it comes time to sell, you may find buyers who will buy it for a higher price than it is professionally valued at.

The problem is, most potential buyers don't have kids they want to stick out in a granny flat, nor a granny, nor do they want to rent a piece of their back yard to a stranger.


Anyways, I'd encourage you to check with council about the building requirements for detached dwellings. There are limits on total GFA of the lot, %GFA of the granny flat relative to the main house, character of the granny flat, and offsets. Then you will have significant cost rearranging the plumbing and wiring. I'd be surprised if you get a 40m2 dwelling completed for less than $65k these days.

 

[wish-ga]

There is a lot of variation in the term 'granny flat'

Some have plumbing in but no cooking facilities. If you are doing a freestanding dwelling that has power/plumbing etc that is basically an income stream that a buyer will recognise. A room with somewhere to sleep and boil a kettle is another kettle o' fish

 

[Katz]

By Granny Flat I was meaning a self contained 1 or 2 bed dwelling. So complete with Kitchen, bathroom and small living area. Really just like another small house.

 

[BV]

By Granny Flat I was meaning a self contained 1 or 2 bed dwelling. So complete with Kitchen, bathroom and small living area. Really just like another small house.

Such a property will have better yields
and if the granny flat is legal IMO it would also sell for more.

Sometimes people are looking for places like this
for to house themselves plus the inlaws, or an aged parent, or 1 older kid etc...
Cheers

 

[lizzie]

i think a granny flat would be a good idea, and a value plus ... but only if it can be accessed without having to trapse thru your yard/private space. if you can fence off access, or have a path and gate down the blind side of the garage, then it's a good idea.