Why Build A Granny Flat or Private Villa?
Granny Flat = High Rental Returns
Some people want to use granny flats or private villas for older family or to give the kids a helping hand to get started.
But granny flats are also ideal for homeowners who want an amazing return on their investment, why have an investment property in another city when you can get a better return in your own backyard?
With the current housing shortage in Darwin and recent changes to the NT Planning Scheme, Now is the best time to get your own moneymaker – a new granny flat in your backyard or even under your house.
If you own your own home or any rental investment properties, why not build a Private Villa and collect additional rent for a second income stream!
Currently in the Darwin Region, a 2 bedroom, one bathroom granny flat can obtain rent of between $300 – $450 per week. How’s that for additional cash?
If you live in your own home, you can install a Granny Flat in your backyard, and collect a stream of rent from your Private Villa, or you may be in a situation where you want to live in the Granny Flat and rent out the main dwelling and get even more rent???
Using a Granny Flat as a Rental Investment
|Building A Granny Flat – Interest Only Loan|
|Weekly Rental Return||$350||$400||$450|
|Annual Rent Return PA (Total Benefit)||$18,200||$20,800||$23,400|
|Weekly Loan Repayments||$159||$159||$159|
|Bank Loan Repayment per Annum (cost)**||$8250||$8250||$8250|
|ROI (Return On Investment – Loan Payment)||12.13%||13.87%||15.6%|
|* This investment outlay is for indicative purposes only. Costs will vary based on site details location, access and design.|
|**Loan repayments based on a 25 year interest only loan at the interest rate of 5.5% PA|
As you can see, building a Granny Flats or Private Villa and using it as an investment to earn rental income is a fantastic option for investors or for other home owners who want to live on the same property and rent out their private villa for a high income stream. There are very few (if any) other low-risk and high return investments which have such a high Return on investment. A great option for any investor or Homeowner.