Who has not, at some time or other, longed for a granny flat or studio at the bottom of the backyard? But does the prospect of a ready refuge make sound financial sense?
“It can do – but only as long as it’s legal! Often it’ll add a premium of 20 to 30% of what it cost.” says Ron Gedeon, principal of RPG Valuers.
Depending on the location, a decent SDU can be rented out for between $200 and $600 a week, which can be an attractive return of investment. According to Jacque Parker, in some areas, their popularity has really taken off, and they can add value to a property as people like the idea of a second income.
“People are becoming a lot more confident now about adding them on to their properties, particularly when they see them popping up in the neighbourhood,” says company director Robert Daoud.
Selling agents Raine & Horne have found properties can sell for a significant premium with a granny flat attached. A four-bedroom house on Dorothy Street, Cromer, for instance, sold in September for $1.25 million, when the median price for the area was $995,000. Similarly, a five-bedroom house on Darley Street, Sans Souci, sold in August for $2.2 million, against the median of $1.08 million.