Local governments have indicated that more and more people are building on their blocks of land, as subdivisions or granny flats. These granny flats are not only a substantial source of housing supply, but also a fantastic income generator or money saver as residents seek to make use of wealth tied up in their land.
With the population of Melbourne already booming by over 400 000 per year, many residents are looking at cost effective ways to secure housing for themselves or their loved ones. Granny Flats are still a popular option for family, either for young adults saving to get in to the property market, or for retired parents looking to downsize.
In fact, the term granny flats is a bit of a misnomer. There are essentially three groups of people investing in granny flats: parents building for their children, children building for their parents and those looking at it as a pure investment.
Granny flats and garden studios are ideal if you’re looking to create more space, build an extension or provide comfortable accommodation for any dependents.
But are granny flats a good investment?
When a property increases in value over time, it is known as ‘capital growth’. Capital growth, also known as capital appreciation, has been strong in recent times. But it can be unpredictable. With the construction of granny flats, you’re not only unlocking the wealth on your current piece of land, but you’re also investing in the future value of your property.
Home-owners can actually accumulate tax depreciation deductions on granny flats with extra deductions for extra fittings such a BBQ entertainment areas or a pool? If you are looking for a passive income, or home extension with heaps of benefits, then a granny flat would be a fantastic option.
At Garden Studios, we have a great variety of Melbourne granny flats to choose from. We are located in south-east Melbourne, Victoria and we use only locally produced products and materials for all of our granny flat designs. Garden Studios Melbourne is also committed to a sustainable future, and all of the bungalows and granny flats that we can provide will also include eco-friendly building practices.
Our structures are built to comply with the Victorian building code and all the materials we use conform to the Australian Building standard.
If you need help creating your own granny flat or garden studio, get in touch with us at Garden Studios.