Does building a granny flat add value to your home on the Northern Beaches?

Is building a granny flat in the Northern Beaches of Sydney a good investment?

This is a question we are often asked by homeowners with equity, on the Northern beaches. Will building a granny flat in their garden help them pay off their mortgage faster with the high rental returns achievable residing on the beautiful Northern beaches. There are not many affordable rentals and granny flats allow a broader demographic to reside in the exclusive area. Some rents start at $35o per week for a studio, and even go up as high as $850 per week for an architecturally designed 2 bedroom granny flat. 

The Northern beaches of Sydney, are known for great restaurants, fresh food, several markets and the convenient Bline transport to the CBD. Now people can hold a hybrid job after Covid, bringing higher rental demand for the 2 bed granny flat. One room as an office and the other for a the professional couple gaining a great beach lifestyle daily, making the granny flat investment a good choice.

The lifestyle is second to none. There are some of the best surf beaches in Sydney on the Northern Beaches, and Narrabeen Beach even hosted the WSL in 2021. There are also some of the most scenic beach treks in Australia. One of our favourite produce markets are the Farmers to Table Produce Market at the North Narrabeen, Warriewood marketplace every Friday and the Mona Vale - Pittwater Shopping Plaza has a wonderful store called Flannerys Organic Market. 

NSW and Pittwater Council have generous rules for granny flats in Australia, making it easy to build a separate dwelling in the back garden or  a contacted self contained granny flat you can holiday let or permanently rent out. But does a granny flat add value to your property?

Uses of your newly built granny flat to add income

On the Northern Beaches Peninsula the community is made up of established professionals with growing families and downsizers with all their loved younger ones leaving the nest! With local property prices being some of the most expensive in Australia, Pittwater landlords need to be savvy and find affordable ways to stay living in the area they love, especially with the need to pay high council rates constantly increasing as land value rises. Having a granny flat can allow you to add an additional fund without the expense of an investment property with land tax, or high stamp duty for a new investment. It allows the family to stay in the beachside lifestyle they are use to by leveraging off the flexibility of holiday letting income in a great beach holiday destination, or an extra rental income from permanent tenants, The extra space can even be a new home for offspring to start their new family by paying a slightly less rent for helping around the property by gardening etc, given them the advantage of still living in the neighbourhood they are use to but couldn’t afford starting out on their own. This helps build family support, as the need to travel in busy schedules is alleviated when hoping to touch base with family, but still the advantage of their own dwelling.

Tenants love granny flats as they are often quieter, being in a residential area, their is more land around them often allowing them to house their beloved pet, and face it, who doesn’t want to live in the lovely Northern Beaches?

What are the advantages of building a granny flat on the Northern Beaches

Some of the advantages of building a granny flat are an opportunity to also have a home office separate from the house, that later you can convert into additional income at retirement as a holiday let or permanent rental.

The granny flat can also be turned into a guest room on the weekend to host friends or holiday let every weekend when the demand is high. Best of both worlds, office Monday to Friday and guest retreat or holiday let weekender.

Does a granny flat increase your property value?

A granny flat will also increase your sale value when you are ready to downsize, due to their extra income you can show to prospective purchasers.

If you would like us to help you get a quote on your land for a granny flat, please reach out through our find a granny flat builder form here, we only partner with the best in the industry so you are sure of a quality build and not risking your best asset your land and home on the Northern Beaches.