The Benefits that Custom Home Builders in Sydney Will Bring to Your Vision
Granny flats are currently the engine behind NSW’s efforts to improve the ongoing housing crisis that transformed the majority of market-listed properties into unattainable dreams for the vast majority of Australians. All major Australian cities face the same broad issue. More people are trying to move there than there are properties available to either rent or buy, which, in turn, makes the prices of already available dwellings reach new heights, every month.
Currently, in Melbourne, the average listing price for houses sits at $952,000, while in Perth, a similar property will go for around $881,000. In NSW, however the situation is even worse, and when looking for a new house, more likely than not you will find it difficult to find something that’s under $1 million. The market, in the end, speaks for itself. Are you facing space constraints, and are you trying to discover a dwelling that’s a bit more spacious and practical for your family’s growing needs? Then, you will need to start thinking outside the box, as simply going for a larger property is probably off limits.
A Wise Financial Effort
The services of granny flat builders might, in this sense, represent one, if not the very best idea you've ever had. And that’s because ADUs, in essence, are the best financial and practical investment you can make, in this current real-estate environment. In Sydney, the average house price per square meter for inner-city properties, sits between $10,000 and $12,500. Are you looking to move into a property that’s 60 square meters larger than your existing one? In that case, you will probably need to pay at least $600,000 for this, which is an enormous financial effort, regardless of the financing options you have at your disposal.
60 square meters is the maximum size permitted by NSW law for the construction of ADUs. However, their price, on average, will be only a third of what you're expected to pay if you’re going for a larger property. On top of that, when developed by locally-renowned custom home builders in Sydney, granny flats can help with tax purposes, are a suitable option for bringing you a secondary income, and will add to your property’s existing market value. How much? By approximately 25%, which in today’s real estate value, could represent a plus of more than $425,000.
Perhaps the Real-Estate Venture with the Highest ROI
Granny flats constructed by custom home builders in Sydney are great because they pretty much pay for themselves in the long run. Let’s say you are quoted $150,000 for the construction of an ADU with one bedroom, and realistically you can expect to rent the property out, for $500 per week, for the whole year. Technically, your annual rentable income will stand at $26,000, for which you will deduct around $1,200 per year in maintenance and $3,620 in management fees, insurance and council rates. You will be left with a taxable income of $21,180.
At a 32.5% marginal tax rate, your net income will be $14,294, which means your net rental yield after taxes will stand at 9.5%. You will pay off your initial investment in the granny flat in around ten to eleven years, and after that, you will only have to think about future profits. When it comes to ROI, ADUs constructed by granny flat builders are by far the best real-estate venture available to the average Australian. You can claim deductions for expenses and depreciation, you will gain a constant rental income, and most importantly, you will raise your dwelling’s real-estate value by more than 25%.
Plus, it’s a safe investment. The only way an ADU built by granny flat builders is not bringing you a permanent, substantial income, is if the real-estate market is going bust. But this is not likely. Currently, in Sydney, demand for affordable housing outpaces supply by a substantial margin. In fact, a recent study conducted by Monash University found that the inner city currently holds approximately 250,000 more people than it can realistically support. Chances are, you will never have issues in finding long-term tenants, and therefore, you shouldn’t worry about ADUs not bringing you a substantial ROI.
How Can ADUs Built by Custom Home Builders Help with Space Constraints?
Well, it’s all about practicality. ADUs are perhaps the most financially advantageous investment you can make if you are trying to maximise your property’s already in-use space. Is the usable square footage of your property surpassing 450 square meters? In that case, per the NSW regulations the custom home builders you call will be permitted to design and construct a granny flat with a maximum floor plan of sixty square meters.
Granny flats designed by custom home builders use the underused space already existing on your property, and the ADU can be utilised for everything, from developing separate accommodation for tenants or family members to being leveraged as new game rooms, studios or office spaces. Unlike home extensions, ADUs constructed by granny flat builders are independent living quarters that can be rented separately from the main property and that will, therefore, bring you a stable cash influx, which will be taxed at an advantageous rate.
But money is not everything. Like the name suggests, the original purpose of ADUs designed by granny flat builders was to host elderly relatives who no longer have the capacity to live fully independent, but who refuse to move to an assisted living facility. Do you want to keep your parents or grandparents close? Are you looking to offer your children a bit more independence? Are you looking for new living quarters that can accommodate your friends during multiple-day visits? In that case, ADUS are the way to go. Affordable, spacious, easy to build, and encouraged by the authorities, these constructions can be the key to solving NSW’s housing crisis, and they represent by far the best solution to increase your property’s usable space and gain financially from it.