Perth faces two property and rental market crises: skyrocketing rental prices and harder-to-find vacancies. As of September 2024, the national median weekly rent sits at $719.80, with cities like Sydney and Melbourne experiencing low vacancy rates. Even worse, experts warn that the current situation is unlikely to subside soon. This has seen a rise in people adding a granny flat to their home.
Why are they so popular? Well for young people in Perth, particularly, it’s difficult to break into the property market so they offer a solution to stay at home while offering independence. It’s a way parents can help their kids get into Perth’s property market. But there are many uses for a granny flat and we discuss all of these and more below!
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Granny flats as a practical solution
One practical solution for families with larger blocks of land is to build a granny flat. Granny flats, also known as secondary dwellings, are self-contained units on the same block of land as a main house. They provide an ideal way to create more space for growing families, especially as young adults stay home for extended periods.
The term ‘granny flat’ originated from the traditional use of these small, self-contained units as living spaces for elderly family members, typically grandmothers, hence ‘granny’ in the name. These flats allowed ageing parents or grandparents to live close to family. While at the same time maintaining a sense of independence.
The concept became famous as a practical solution for providing care and support to older relatives without needing external assisted living. Over time, the term has remained, though granny flats are now used for various purposes beyond just housing elderly family members.
Nowadays, according to Summit Granny Flats in Perth, granny flats are already being used to combat soaring property prices in WA. “We’ve noticed a significant rise in demand for granny flats and multigenerational house designs. It’s no doubt caused by the incredibly tough property market here in Perth,” says Summit.
Why many are building granny flats, rather than extending
Granny flats are becoming more popular than home extensions for a few key reasons. As Summit explains, “Granny flats give families more privacy than a second story or extra room.”
Unlike an extension, a granny flat is a fully self-contained unit with its own kitchen, bathroom, and living area. This separation means family members can live comfortably without constantly sharing communal spaces. For example, most granny flats have a kitchen and bathroom, which would be shared in a traditional extension.
Granny flats also offer a more affordable and efficient option than traditional home extensions. While extensions can be costly and time-consuming, building a granny flat provides a fully self-contained home without the hassle of extensive renovations. This makes them practical for families looking to expand their space without disrupting the main home.
A long-term investment for families
Granny flats also represent a long-term investment, particularly for families considering their children’s futures. As well as provide a solution for helping young adults save on rent while preparing to enter the housing market, it can serve as a valuable asset in future. As property prices in Perth continue to rise, having an additional self-contained living space can add significant value to a home.
Once children have moved out, the dwelling can be repurposed. For example, they are often used as a pool house, an entertainment area, or even rented out for extra income. Additionally, it provides a perfect living space for ageing parents. For example, parents who may need some care but still want a level of independence.
Moreover, renting a granny flat can be highly profitable. For example, a one-bedroom granny flat in East Perth was recently leased for $520 per week, and another property initially rented for $470 per week in September 2022 was listed at $550 per week just a year later. This year, rental prices for granny flats vary widely, ranging from $100 to $1,000 per week.
Flexible living options for multigenerational families
For many families, granny flats offer a flexible living solution that accommodates the changing needs of multigenerational households. With housing prices pushing young adults to stay at home longer and the ageing population increasing, these secondary dwellings provide the perfect blend of independence and family support.
Having a separate space for each generation reduces tension and provides privacy while still allowing family members to stay close. This is particularly important for elderly parents who may no longer be able to live alone but still want their own space. Granny flats allow families to adapt to these changes without sacrificing the comfort of all members.
Granny flats are more than just a practical solution for today’s challenging housing market. They’re also a long-term investment. Benefits include enhanced privacy, added value to your property, and flexibility for your family. With property prices continuing to rise in Perth, now is the perfect time to consider building a granny flat. It’s a way to support your children and secure a valuable asset for the future.
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