There's no doubt that adding a granny flat to an IP will significantly increase the rental return (small decrease in house rental but well and truly offset by additional rental from granny flat).
However, what about the overall value of the property - does it increase by the cost of the granny flat ?
I have a NSW IP which appears to have the potential for a granny flat (stand alone garage in backyard which has access to street at rear) but am wondering if it's really worth the effort and cost as I may need to sell in 5 years time. It's all very well getting a good rent increase - but if I don't regain at least the cost of building the granny flat when selling the IP then overall I may end up with a significant loss.
Anyone had any experience with this sort of dilemma ?
However, what about the overall value of the property - does it increase by the cost of the granny flat ?
I have a NSW IP which appears to have the potential for a granny flat (stand alone garage in backyard which has access to street at rear) but am wondering if it's really worth the effort and cost as I may need to sell in 5 years time. It's all very well getting a good rent increase - but if I don't regain at least the cost of building the granny flat when selling the IP then overall I may end up with a significant loss.
Anyone had any experience with this sort of dilemma ?