Sydney home owners who have built granny flats under the Government’s Affordable Rental Housing policy are reaping the rewards. A recent survey by Flatmates.com.au, showed that the weekly asking rent for granny flats has jumped by 5.95 per cent over the 2014/5 financial year – a significantly higher rental growth rate than for houses (3.9%) or apartment (1.0%) over the same period. Classed as “affordable housing,” granny flats in Sydney are achieving average rentals of $292.46 per week - the highest in the country - followed by Perth at $251.25 per week. Sydney’s Upper North Shore and Northern Beaches are top performing suburbs for granny flats, with some attracting rentals of thousands of dollars per month (a brand new 3-bedroom granny flat in Pymble is on the market for $650 per week).
While the rental market remains tight, with vacancy rates continuing to remain stable or even drop slightly, granny flats offer an attractive option for tenants and owners alike. Granny flats are separate, or attached, homes on the same title as the main house, that can be rented separately but not sold separately. Owners of houses on large blocks (minimum 450sqm), looking to add value to their properties might consider adding a granny flat to their homes for their children, relatives or income. For more information on whether you can add a granny flat to your property under the State Environmental Planning Policy (Affordable Rental Housing 2009), and if you qualify for fast track approval (within 20 days), check out the NSW Department of Planning website here.