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Your current property is more than just the residence of your loving family. It is a testament to your inbound creativity, the culmination of your hard work and, realistically, the most extensive investment you had to consider so far. But there is a problem. Like the vast majority of Australians, you may now face space constraints that cannot be solved by simply browsing the housing market for a new and improved dwelling.
Are you based in NSW? Then, you are probably aware of the current housing crisis affecting the majority of Australian metropolises, and most likely, you do not have the financial resources to purchase a bigger house. So, looking at the best home constructions available right now is probably a wise financial move. Are your children growing up and they now require more privacy?
Are you in need of more space for work-related activities, or perhaps do you want to be closer to your elderly family members and keep them around to look after your kids? In that case, the most financially prudent move you can make is to enlist the professional services of specialists known for the best home constructions in Sydney. Building a new property, in this current market environment, can have a distinct set of advantages compared to selecting an already-built dwelling.
Why Should You Consider It?
In NSW, the construction of a newly-designed property will cost somewhere between $2000 and $3000 per square meter. In central Sydney, however, according to Numbeo, the cost for a city-centre apartment has risen to more than $12,000 per square meter. If we take a suburb like Green Valley, NSW, in which realistically the price per square meter for allocated residential land should not cost more than $2,200, buying an appropriately-sized plot should not cost more than $900,000. The construction of the property, on the other hand, when we consider the added costs of landscaping and architectural fees, plus the permits necessary for the start of the building project, should set you back around $550,000. And that’s if we use a construction range of $2,500 per m².
In total, your new dwelling should not cost more than $1.5 million, which is a relative bargain when we consider how the average price in Sydney, for market available properties, has surged to more than $1.75 million. Sure, as of right now, the average price for market-listed properties in suburbs like Green Valley is under that figure. But with a new dwelling you will get better control over the quality of the finished products, you will obtain more equity at the completion of the construction project, and you might benefit from financial grants offered by the Australian government.
On top of that, new properties increase in real-estate value at a faster pace than older ones, and therefore, more than likely, your current investment will translate into a positive ROI just a few years down the line. But what happens if the guaranteed best home constructions in Sydney are still outside of your financial reach? Well, in such a case, another solution will be to leverage the expertise of granny flat builders.
What Are the Practical Benefits of ADUs?
Granny flats represent perhaps the most financially-affordable solution to increase the square footage of your property, as these constructions are much easier to complete than home extensions or the development of new building projects. In NSW, ADUs do not require council approval, and the State Environmental Planning policy provides a clear framework for obtaining Complying Development Certificates via a fast-tracked approval process. Practically, for ADUs, DAs are rarely a necessity, and for this reason their construction time, when aided by granny flat builders, is substantially shortened.
Granny flats are the preferred solution by most Australians who are looking to expand on the square footage of their dwelling, and some call them the best answer for ending Australia’s problematic housing shortage. How are they advantageous? Well, for one thing, granny flats can be utilised for housing your elderly relatives, maintaining the privacy of your family members, or be transformed into communal spaces that will aid in your personal and professional development. A granny flat can be changed into a new playing room, an office, a gym, or even a meditation room. The only limit will be your imagination and the budget you have at your disposal. Speaking of budget:
What Are the Financial Upsides?
So, you have browsed the offers of the best home constructions available in NSW, and you have decided to utilise the expertise of granny flat builders. You’ve made a fantastic choice, as ADUs can realistically transform into one of your family’s top income sources. The construction of a granny flat can add around 20-30% to the total real-estate value of your property. Plus, building an ADU, when considering a 60 square meter unit, should not cost you more than $200,000.
That means that even in the worst-case scenario, if your house has an estimated value of $1.2 million, your $200k investment should add around $240,000 to its appraisal. So, you’ll be in the green zone. Plus, you need to consider the rent potential of a premium-built granny flat. When constructed with the help of granny flat builders, ADUs can be utilised as separate rental units, which will add a consistent and predictable second income to your family.
How much are we talking about? Well, in some suburbs near the CBD, the rent can, for some units, go as high as $800 per week. Let’s say, however, that you are a couple of miles away from the city’s central district, and you want to attain an occupancy rate of around 95%. At $600 per week, your total rental income should come to around $30,000 per year. So, in other words, your initial $200k investment in the ADU constructed by granny flat builders should be covered in less than seven years. Granny flats are one of the best real estate investments available to the average Australian, and for this reason, their popularity is rising.