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There are many reasons why a homeowner might want to add a granny flat to their property. These are secondary housing units built on the same lot as the homeowner’s primary residence.
In recent years, granny flats such as mini homes and converted garages have become very popular.
These days granny flat Penrith is not only used as housing for in-laws and aging parents. Granny Flat Solutions consider them as a solution to the inventory shortage in housing markets across the country. They add value to a property.
The way you use the granny flat could have an impact on homeowner’s insurance costs and tax rates.
Granny Flats and Homeowners Insurance
A recent study showed that 66.5 million Americans live in a multi-generational home with two or more adult generations under the same roof.
This means 20% are living with grandchildren or grandparents, up from 12 % in 1980. Having a granny flat that an elderly relative can live in, maybe more important now than it was ever in the past.
If other people are living in your home even if it is a family, there are risks that can drive up the cost of your insurance premiums.
Putting a Granny Flat to Good Use
Some homeowners build granny flats for their aging parents. Others want another source of income. Below are given ways to make the most of an extra unit attached to your home.
Long Term Rental Unit
A great way to turn on the granny flat into a source of income is to ask tenants to sign a lease. If you live in a largely populated area or a place tourist visit, it could become a passive income stream.
And if you are in want of cash, you could move into your granny flat and rent out the rest of your house.
Short Term Rental Unit
If you are not interested in handing the keys to your home over to a tenant for a full year, rent out your granny flat temporarily
There are many online resources to list your unit. Keep in mind that you need to pay lodging taxes.
And if your flat is rented out at normal commercial rates, all the money you earn will be taxable. You may be able to direct expenses like insurance premiums and utilities.
As parents and grandparents grow old, allowing them to live in a granny flat connected to your home can be a cost-effective way to look after a family member.
Housing for Adult Children
Finding affordable housing may be difficult for young adults. That’s why professionals who are young and want to save money may want to consider living in separate units attached to their parent’s homes.
Granny flat can be a good option for an adult child with developmental or mental health issues who want to remain connected to the family while living an independent life.
Home Office or Studio
If you work from home, a granny flat could be a great place to escape when you need to focus and avoid distractions.
If you are an artist, you can easily turn a granny flat into your own personal sanctuary.
If there are too many family members and friends staying over your house then it can be overwhelming.
Giving guests access to a private unit would make everyone feel more comfortable and make your home less crowded.
The cost of constructing a granny flat varies depending on its size, amenities, and location where you are building it. Once the unit is built, you will have to pay to put in plumbing and electrical wiring.
When it is all done, you end up spending hundreds of thousands of dollars. Taking construction costs into consideration is important when you are thinking about adding a granny flat.
Watch out for hidden fees and also make sure you have all the permits you need for the project.