What is old is new again. People are supplementing their income and enhancing their ability to pay their mortgage by renting out other parts of their property.
The NSW Government is supporting the concept of granny flats throughout the urban sprawl of Sydney. In many areas of Sydney, it is now accepted that a second dwelling can be built on your property. These are commonly referred to as granny flats. The granny flat program is brilliant for landlords and for homeowners. A person can add a granny flat to their property and rent it out for essentially two thirds of what you would receive for the leasing of the residence. I have even seen one person put two granny flats in their back yard and live off their rentals.
In a marketplace where affordable housing has become a problem, it is a solution to the costs of funding a mortgage. A person can live in a house and set up a granny flat in their backyard. This will provide an income, which will assist in the payment of a mortgage in Sydney. Great for homeowners!
It is also a great opportunity for real estate agents. Real estate agents who can acquire contracts to distribute granny flats can sell granny flats to homeowner’s in their area. This will provide an extra form of income for the sales team.
Additionally, real estate agents could offer a service to the homeowner to rent out the granny flat on their behalf. This could assist homeowners not currently on the real estate database or current landlords who could increase their rentals.
With adversity always comes opportunity. Whilst we were complaining about the unaffordability of housing in the Sydney area, if people wish to live there, we can find a way to make that economic. Find a need and then fill it.
This article was written by Bailey Compton, Principal Solicitor & Director at Leverage Group.
To get in touch with Bailey, please email firstname.lastname@example.org or call 1300 438 538