What Are the Site Requirements for Houses with Granny Flats?
In this day and age, our success can be highlighted by the property we live in. Are you a highly skilled individual who has succeeded in building a career in a respected field? Then, probably, your home reflects your achievements. However, sometimes, what was once enough may no longer be sufficient for your ambitions. Have you advanced professionally, has your family grown, and do you need more space for your activities? Do you want to invest in your property and build an ADU? If so, you'll need to be aware of the site requirements for NSW houses with granny flats.
In Sydney, accessory dwelling units can be built on a plot of land that is at least 450 square metres in size. Moreover, the maximum internal floorplan of the granny flat cannot be more than 60 square metres. Granny flats are small buildings that cannot exceed the average size of an Australian apartment. Furthermore, ADUs must always be built adjacent to a primary property and must be the only such construction on the lot.
Not least, one or 2-bedroom granny flats cannot have a maximum height of more than 8.5 metres, must benefit from a minimum yard space of 24 square metres, and must maintain a minimum distance of three metres from trees taller than six metres. The property must be located on a lot of land allocated for residential purposes, and construction can begin as soon as you obtain a CDC. Dwellings with granny flats have financial advantages, are more affordable than their non-ADU counterparts, and have, in recent years, become a hot trend in the real estate market of major Australian cities.
Granny Flats Versus Home Extensions: What Are Better?
Accessory dwelling units, known to the general public as granny flats, are, by definition, self-contained living spaces that must be built adjacent to a primary dwelling and, if rented out, benefit from the necessary appliances for independent living. Home extensions, however, are adjoining structures built directly onto dwellings that are usually intended to increase the square footage of the building. ADUs are versatile constructions that can be used both as storage and as rental units for passive income. For this reason, houses with granny flats are trending in the real estate market and can increase the market value of your property by up to 30%.
Home extensions, on the other hand, usually consist of renovations intended for family use and may involve the construction of extra living rooms or bedrooms. Moreover, since home extensions are generally less complex than the construction of ADUs, their costs are often less than $100,000. A significant advantage of granny flats is the lack of extensive paperwork. Do you want to extend your living space and build an ADU that you rent out? If so, according to the SEPP (https://legislation.nsw.gov.au/view/html/inforce/2021-02-01/epi-2009-0364) , council approval is not required. However, if you plan to extend your home, and the costs of the work are above $5000, you will probably require council endorsement and a renovation permit.
One or Two-bedroom Granny Flats? What to Choose?
Houses with granny flats sell for a premium on Sydney's real estate market, and although their construction is not necessarily affordable, the ROI for most homeowners is more than acceptable. Should you go for 2-bedroom granny flats? That's up to you and the amount you are willing to spend. The median price of a modern one-bedroom granny flat is around $120,000 +/- a couple of grand, depending on your interior design preferences.
However, 2-bedroom granny flats are a more considerable financial investment and may require a payment of more than $160,000. Do you only need extra storage for your personal belongings? If so, a one-bedroom unit is probably enough. The costs of a one-bedroom ADU will be lower, as will the complexity of the work. In fact, the majority of Australian houses with granny flats come with one-bedroom units. However, two-bedroom ADUs have started to gain popularity in recent years.
Are you looking to maximise your financial gains? If so, 2-bedroom granny flats are a better deal.(https://brickwoodhomes.com.au/2-bedroom-granny-flat-designs/) Although they require more money, two-bedroom ADUs can be rented at a more advantageous price and accommodate not just couples but also families with two or even three children. The weekly rent of a one-bedroom granny flat revolves around $500 per week, which at an occupancy rate of 90% would mean a rental income of about $23,000 per year. However, two-bedroom ADUs, depending on location, can have a rental price of $650-700 per week, which will translate into a total yearly rental income of about $32,000. That will be a $9,000 difference, which is not something to scoff at.
What Documents Are Necessary for a Granny Flat?
In accordance with the Affordable Housing State Environment Planning Policy of 2009, homeowners wishing to build an ADU on their existing plot of land do not need council approval but only need to meet the conditions necessary to receive a CDC (https://www.service.nsw.gov.au/transaction/apply-online-for-a-complying-development-certificate-cdc) . Does your lot meet the minimum requirements for building a granny flat? Then, you can submit a development application to your local council accompanied by a site plan.
If everything is approved, then all you need is an Occupation Certificate stating that tenants or relatives can inhabit the structure. Furthermore, the construction must comply with Australia's building code. Not least, you must have clear ownership of the plot of land where the dwelling is located, and the applicant for the ADU must be the current legal owner of the property. The process of building an ADU is more straightforward than that of other types of construction, and the timescale for completion is shorter.
While the building period of a two-story home can be longer than twelve months, the majority of one-bedroom granny flats can be completed in less than four. Houses with granny flats are in demand, and construction of the ADU can usually begin in less than ten days from the submission of the paperwork. Plus, the costs of building granny flats are much more reasonable than developing a whole new dwelling.
A Boost to the Local Economy
Dwellings with granny flats may be a solution to the growing problem of housing shortages affecting major Australian cities. Two-bedroom granny flats are affordable compared to building whole new properties, and their application process is much more straightforward.
The world needs cheap, long-lasting housing. However, building new homes costs money and requires land. This is especially tough in Australian suburbs, where people don't want big construction projects.
Granny flats are a way for homeowners to take advantage of already-parcelled land and earn an extra income, which will ultimately flow back into the local economy. The tenants of ADUs will contribute positively to the stable development of suburban communities. Moreover, they will be a positive aid for small and medium-sized businesses that need business growth to be relevant in their fight against national chains.
Granny flats increase the supply of rental units available in the suburbs, boost the market value of nearby properties, allow for the diversification of the rental stock, and are welcomed projects for local construction companies that can only survive through small—to medium-scale developments. Are ADUs the perfect solution to the growing real-estate issues faced by most Australian cities? No, but they help and can represent a fantastic investment for the financial stability of your loved ones.
