Changes to West Australian property laws are set to alter the way we see the Granny Flat.
As at August 2013 a home owner is no longer required to obtain a formal subdivision in order to lease out a granny flat their property.
Granny flats can now be built in all residential zones, pursuant to some restrictions, such as there cannot be more than one home and one granny flat on the same block of land.
What are the advantages?
The first and most obvious advantage to adding a granny flat to your property is the potential for generating rental income. If your property is too small to subdivide a granny flat may provide an opportunity to generate income from a large backyard. Adding a granny flat may also potentially increase the value of your existing home.
Whare are the disadvantages?
Certain restrictions that apply. The total combined floor area of the main home and the granny flat can not exceed the maximum allowed by your local government.
Something else to keep in mind is that a granny flat is a long term investment. Initial setup costs can be substantial and rental profit gains may take a while to show.
Another disadvantage of course is that you will lose a large part of your backyard. This may be important if you have children, or are planning to have children, or if you need the room for pets, gardens, cubby houses and play equipment.
Before you build
- Research local government restrictions on granny flats – they may be different in each local government area.
- Obtain appropriate financial advice.
- Obtain appropriate legal advice.
This is general information only, and does not constitute specific legal advice. If you would like further information in relation to this matter or other legal matters please contact our office at email@example.com or call us on 1800 609 945.