Capitalise on your property in these challenging economic times…

There are few better ways to improve flexibility, add value and generate income from your home than a garden flat addition says our own Property Investment Educator and Advisor Richard Sheppard.

Sydney’s Northern Beaches have long been a fantastic location to invest in property and to incorporate additions such as a garden flat, but with the recent streamlining of the council approval process of secondary dwelling additions by the NSW Government and the improved affordability of such building options, its now an even more attractive option.

Secondary dwellings are generally considered to be detached buildings (such as garden flats) but also include attached separate living spaces under the same roof as the main building or an extension. There are some general conditions that need to be met, such as a maximum internal floor space of 60 square meters and others that are outlined in the information brochure at www.planning.nsw.gov.au. We strongly recommend speaking with an expert in the field who can guide you through these conditions.

If you have adequate spare room in your existing home to renovate and create a separate living space (and you are happy to sacrifice that space), then it’s well worth considering as it’s likely to be more affordable and in fact could cost as little as $20,000. If you have sufficient space to build in your back yard, good to very high quality 1 to 2 bedroom garden flats can be built for between $50,000 and $150,000 inclusive of all design, certification and landscaping costs.

It’s possible to achieve rents of up to $500 per week for a well designed garden flat in a good location, so it’s well worth considering as it could help you pay off your home loan in around half the time.  Alternatively, the extra income could help start or support other investments such as an investment property portfolio.  In turn, this could also help you pay off your home loan sooner or see you on your way to an early retirement.

Some other tips to further increase returns include:

1. Consider offering off-street parking for higher rent;
2. Consider furnishing the property;
3. Use efficient design to increase from 1 to 2 bedrooms plus deck or courtyard;
4. Consider renting a spare room to students or others.

Property investing can be a very rewarding experience if executed well and with good advice, so if you’d like any assistance with these concepts or any other property investment needs, we’d be glad to show how we can help.

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