The global economic situation makes it necessary to target additional sources of income, and one of the most effective ways to increase your family’s financial comfort may involve investing in your own home. Utilising the services of a house and granny flat builder in Sydney could prove pivotal in enabling a passive income, which will translate into a positive ROI in time. A granny flat can primarily be an extension to your existing property, which you can use to store your belongings or to house the essential people in your life. But at the same time, an ADU can be an additional source of income, bringing you tax breaks and increasing both the market value of your home and the profitability of local businesses.
A granny flat is one of the best and most cost-effective investments you can make in Australia. Given the affordable housing crisis in major Australian cities like Sydney or Perth, an ADU, when built by a professional house and granny flat builder, will always attract tenants, and the additional income from these renters could cover in a short time all the necessary expenses for the construction of the secondary dwelling. But what if you are not interested in an addition to your existing home and want to invest in a duplex instead? In this case, the experience of local duplex home builders could be crucial. But what are the differences between this type of construction and an ADU, and what are the fiscal and practical advantages of using the offerings of professionals? We propose to discuss these questions together in the next few minutes.
Gain a Financial Advantage
After a period of price stagnation, homes listed on Sydney’s marketplace have started to show steady growth again, and this is terrible news for people looking for a good deal. With house prices sometimes jumping over $1 million, many families are forced to switch their focus to their existing dwellings if they want the extra space. A professional house and granny flat builder could help you create an outbuilding to your current dwelling or a separate granny flat that can be used as extra storage space or as a rental house, which in the long run, can generate a steady income.
ADUs are cheaper to build than traditional homes and don’t need to follow the exact strict building codes requirements as your main property. In New South Wales, building an ADU does not require council planning, nor does it necessitate extensive planning on your part. When rented in a popular residential neighbourhood, a granny flat could generate a substantial profit from rental income, for which you must pay tax. But the Australian government not only taxes ADUs but can also help them.
Any expenses required for the maintenance and management of your property may be tax deductible, as are the utilities not paid by your tenants. Moreover, the Australian government can help you, through the Australian Taxation Office, to claim the natural depreciation of the newly built dwelling as tax deductible. However, these matters would be best discussed with an accredited house and granny flat builder in Sydney.
What If I’m Interested in a Duplex?
Are you someone who wants to benefit from considerable rental income? Then you will most likely be interested in the services offered by duplex home builders. A duplex is a residential building divided in the middle by a wall. According to the LHDC code, released in 2020, duplex homes must be located on the same lot of land, arranged side-by-side to each other, and feature an access point to a public street. The maximum height of these types of buildings cannot exceed 8.5 meters, and their width must be greater than five. Such a construction, designed by professional duplex home builders, can be registered on a single title or subdivided and sold separately depending on the preferences of the potential owners. What are the advantages of a duplex?
To begin with, duplex buildings are ideal for renting. Since we are practically talking about two separate buildings on the same lot, a duplex could be specifically designed to be rented out to two different families, which from the point of view of a landlord, can be more profitable than renting the whole building to a single household. Structures designed by duplex home builders are also feasible if you are interested in living next to the house you are offering for rent, thus making it easier for you to maintain it. Duplex complexes are generally more expensive than ADUs or home extensions but can provide greater flexibility and serve as great multi-generational dwellings for your loved ones.
What Type of Construction Should I Choose?
Generally, granny flats are easier to build, cheaper, and don’t require as much planning as a duplex. To construct a duplex, you will need council approval, and the block where the complex will be erected will need to be at least four hundred square metres in size, of which fifteen metres will represent only the width. If you benefit from a higher budget and want to earn a more substantial rental income, then a complex built with the help of duplex home builders could be the right choice for you. Duplexes require a higher upfront cost but are larger in size, can offer greater privacy for your family and yield a higher ROI.
On the other hand, granny flats are suitable for people on a smaller budget who are interested in quicker completion times. Granny flats can be constructed for less than $80,000, and the income earned from renting them can exceed $500 a week, which could cover the entire investment in just a few short years. Granny flats can be designed as separate external offices, they can be playrooms and bedrooms, or they can be attached to your existing home.
Analyse Your Choices Carefully
When it comes to property investments in the Australian market, the sky is the limit. Want to generate a stable and predictable income without spending a fortune? Then a granny flat could be ideal for you. Are you instead interested in building a duplex that, in the long run, will be more financially advantageous than an ADU? Then calling on the professional services of duplex home builders could be vital. But most of all, you probably want to invest in your family’s future, and from this point of view, you cannot go wrong with whatever type of construction you choose.
Both duplexes and ADUs are practical and versatile buildings that could be tailored to your family’s needs and requirements. Consultation with a professional team could be crucial in choosing the right type of dwelling for you, and by turning to the specialised offerings of experts, you can be sure that your initial investment will be maximised. A dollar invested today in a duplex or ADU could translate into significant sums saved in the future. And these sums could later be used to improve your family’s financial well-being.