I caught up with a client who had built her Granny Flat through my previous employer in Burwood, Sydney. Over a cup of coffee, I asked her how everything was going with the granny flat and essentially feedback in general. She responded with positive comments however one particular statement really caught me off guard. We built a 2 bedroom granny flat for the customer with ensuites for both bedrooms & separate laundry. So essentially it was 2 Master Bedrooms with a shared living & kitchen under the same roof line and totalling 60sqm.
As I was about to have a sip of the latte the customer said ‘Rahman I am renting out the Granny Flat for $600/week, $300 a bedroom’ I almost had a mini heartache when I heard that. Take a second to let that sink in just as I did… $600/WEEK FOR A GRANNY FLAT? When I thought about it in retrospect it is a WIN/WIN situation. From a tenant’s perspective anyone wanting a 1 bedroom apartment in Burwood will have to pay $450/week+. Therefore from a tenant perspective the 1 bedroom in the granny flat forms a viable alternative. From the perspective of the owner an investment of approx. $135K is returning 23% ROI. Now I’m not saying every single case will be the same what I am saying is homeowners all over NSW are making money from their backyards, so what’s stopping you?
Rahman Bahin – Director Chivalry Construction