Powered by momentummedia
nestegg logo
Powered by momentummedia
nestegg logo
nestegg logo

Invest

How you could add 30 per cent to the value of your property

By Cameron Micallef · June 24 2019
Reading:
egg
Coreogic

How you could add 30 per cent to the value of your property

author image
By Cameron Micallef · June 24 2019
Reading:
egg
Coreogic

Australian investors are potentially leaving thousands of dollars off the value of their properties by not correctly utilising the space provided, according to fresh data.

More than half a million home owners across Australia’s eastern seaboard have enough space to build a granny flat on their land.

For research house Corelogic, this could push the value of those properties up by approximately 30 per cent.

The rental opportunities are similar, with rental asking prices increasing by 27 per cent with the addition of a granny flat.

CoreLogic’s head of research, Tim Lawless, believes granny flats are an advantage for renters and home owners on a budget.

Advertisement
Advertisement

“Building a granny flat is becoming an increasingly compelling proposition for home owners in a relatively lacklustre market. Not only can it help to manufacture new capital gains, but it has the potential to generate rental income while meeting demand for more affordable housing,” said Mr Lawless.

Cost associated with the build

According to CoreLogic, constructing a two-bedroom granny flat would require an initial investment of around $200,000, while a smaller one-bedroom dwelling would cost roughly $120,000.

Potential opportunity

Co-founder of Archistar Robert Coorey believes home owners are missing out if they don’t use their land to create additional funds.

“Many home owners are sitting on a pot of gold in the form of excess land that could be developed to generate a new income stream. This has wider economic benefits for renters who want to access popular suburbs without paying a premium,” said Mr Coorey.

Mr Lawless believes younger Australians are moving into these homes as a cheaper alternative as they try to stay in a preferred area.

“Many properties identified as suitable for a granny flat are in densely populated and traditionally expensive areas, such as Sydney’s Northern Beaches or Hornsby. More granny flats on the rental market will make it easier for young people to stay in their preferred area, rather than move further afield to find value for money,” said Mr Lawless.

Mr Coorey also believes the economic impact from unlocking this unused land could potentially be worth billions to the Australian economy.

“What is a relatively small outlay for home owners could boost the construction industry to the tune of $87.5 billion and accommodate the growing population in some of the cities’ most popular suburbs,” Mr Coorey said.

This email address is being protected from spambots. You need JavaScript enabled to view it.

How you could add 30 per cent to the value of your property
Coreogic
nestegg logo

Forward this article to a friend. Follow us on Linkedin. Join us on Facebook. Find us on Twitter for the latest updates
Rate the article
author image

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

About the author

Cameron is a journalist for Momentum Media's nestegg. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leveraging their insights to grow your portfolio.

Join The Nest Egg community

We Translate Complicated Financial Jargon Into Easy-To-Understand Information For Australians

Your email address will be shared with nestegg and subject to our Privacy Policy

From the web

Recommended by Spike Native Network

Website Notifications

Get notifications in real-time for staying up to date with content that matters to you.

Copyright © 2019 MOMENTUM MEDIA