Free standing Granny Flats
Granny flat. If the term conjures a vision of anything but stylish, comfortable and thoroughly modern independent living, it’s likely you haven’t been keeping up with the Joneses. Thanks to Clarendon Homes, today’s granny flat is about as far from the afterthought of days gone by as it’s possible to be.
The modern granny flat is also much more than just an extra dwelling for accommodating family members. Adding a freestanding one or two-bedroom granny flat to your Clarendon build can bring financial benefits, including raising your property’s value and generating extra income.
Whether it’s for family, additional income or simply extra space, a growing number of Australian families are opting for the flexibility a granny flat offers. Let’s explore the benefits and the options available with Clarendon Homes.
The Granny Flat trend
“We are definitely seeing more and more customers considering a granny flat for their new Clarendon home,” says Michael Chadwick, General Manager of Home Finance at Clarendon’s partner Loan Market.
“Many of the reasons for that are financial,” he explains. “The cost to buy land, finance and build a home has increased over time, and customers are now seeing the opportunity to offset some of those costs by including a granny flat into their home build.
“For many, a major immediate benefit is being able to get some rental income to help pay the mortgage. Customers are looking for anything they can take advantage of to help them get into a new home.”
Property value
Your little piece of Australia is precious. And as blocks become more expensive and harder to secure, it makes sense to maximise the value of your investment. Chadwick says that adding a granny flat is a great way to do this – and the benefits stack up well compared with building a duplex, for example.
“With duplexes you typically need a larger size block, so that's extra cost to purchase the land,” he says. “Building costs for duplexes will also be pretty much double the price of building a single home.”
Adding a granny flat, on the other hand, can significantly increase the value of your property for less outlay. And when you sell, it will attract potential buyers seeking versatile housing options – a need that is only likely to grow in time.
So how big does your block need to be to accommodate a granny flat?
Ryan Barnett, Design Manager of Campbell Property Group, explains that current Clarendon granny flat designs range from 45 to 65 square metres. “They can be accommodated on smaller blocks of 450 square metres or less, but the house size must be reduced to suit,” he says. “Larger blocks are preferred to allow for both a good-sized house and a granny flat.”
What about the space in between – the garden?
“Families often prioritise amenities like lawns and pools when planning their block,” says Barnett, “while investors are more concerned with maximising returns.”
Rental return
As your family grows and changes, so too can your financial circumstances. What if you had a potential source of income right there in the backyard, for those times when it’s not needed to house senior, young adult or “between addresses” members of the family? That’s where leasing one or even both of the dwellings comes in.
“From an investment perspective,” says Michael Chadwick, “a lot of people are looking to build granny flats because it's cost effective. While the customer only has to pay to build on a block they already own, the rental income is similar to, let's say, the rent from a one or two-bedroom unit. The outlay for a unit would be two to three times higher.
“In the long term,” he adds, “it's very appealing from a property value perspective. We've seen a lot of investors who are interested in the fact that there's potentially two properties they can rent out.”
A Clarendon granny flat comes with everything you’d expect of a self-contained apartment, with full kitchen, bathroom, laundry, living/dining zone and bedrooms with built-in robes. Unlike an attached granny flat – inside your home but with its own entrance – a freestanding flat affords extra space and privacy, and that’s very attractive to renters and investors, says Chadwick.
“A well-designed granny flat is typically a separate dwelling that respects the privacy of both properties on the block,” he says. “They have separate access points, so people can live independently from each other.”
Granny Flats and Tax considerations
If you charge rent for the use of your granny flat, this will be considered taxable income. However, you’ll also be entitled to claim the normal deductions for depreciation against income from an investment property, such as the interest on your mortgage, and expenses including council and water rates, repairs and maintenance, gardening and cleaning.
“There are definite tax benefits to be had, among other considerations,” says Chadwick. “We do recommend that all customers seek the advice of their accountant so they can appropriately manage the benefits of investing in a granny flat.”
The Clarendon Granny Flat Solution
If you’re considering a granny flat for your new home, our experts recommend that you speak with a Sales Consultant early in the process. By designing and building your home and granny flat at the same time, Clarendon can maximise the efficiency and cost-effectiveness of your build – and make the process seamless for you, the customer.
Settling on the design and aesthetic of your granny flat is easy. Once you’ve chosen one of the four designs currently available – the one-bedroom Annandale or Parklea, or two-bedroom Eastwood or Sylvania – there's the facade to consider, with facade options available for granny flats in the Luxe range. Clarendon’s experienced consultants will help you make the best choice to harmonise the two dwellings.
“Customers can choose granny flat options and upgrades with the help of a consultant during the main house planning,” says Barnett. “The consultant will help select fixtures, fittings and finishes such as paint to perfectly complement the main house.”
Next steps - Visit our Granny Flats
Why not pay us a visit to check out the real thing? You can walk through Clarendon granny flats on display in four accessible locations across Sydney, the Newcastle and Hunter regions.
- At Parklea Super Centre, view the 1-bedroom Parklea 60 Granny Flat.
- At our display centres in Sylvania, Yagoona and Lochinvar, visit the 2-bedroom Sylvania 65 Granny Flat.
Not quite ready to visit in person? For inspiration, go online to check out our range of stylish, contemporary and comfortable granny flat designs. While there, take a virtual tour of our Display Homes, browse through our video gallery or create an instant price estimate on our website. For more information, call us on 13 63 93.
Granny flats: need to know
- It’s never too early to consider a granny flat. We’ll plan and build it at the same time as your Clarendon Home, but not later or on an existing home. This ensures an efficient, cost-effective build and a seamless process.
- Is your block suitable for a home and granny flat? Perhaps it’s small, oddly shaped or has a slope? We’ll provide expert advice and if your block checks out, we’ll help you find a home design and flat, using computer modelling to show how it fits on the site.
- Your granny flat comes with an impressive range of inclusions determined by whether it’s from our Luxe or Aspire collection. During the planning of your house, your consultant will help you choose options and upgrades for the flat, including complementary fittings and finishes.
- Concerned about accessibility? Talk with an experienced Sales Consultant about options for your granny flat, and check out our display flats to see what’s possible.
- Granny flats come with tax benefits and other financial implications. Talk with your accountant to ensure you have the full picture and can maximise those benefits.
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