The combination of a number of factors, such as the ageing population and lack of affordable housing in Western Australia, have ensured that granny flats are becoming more and more popular.
These small but perfectly formed flats are quickly proving to be a preferred solution for buyers of all ages, offering an attractive alternative to flat shares. Many young families are moving back to their parent’s home to live separately in a granny flat while there are an increasing number of teenagers staying at home for longer, hoping to save up enough to invest in property.
Changes to WA’s planning laws to ensure that it’s easier for property investors and home owners to build granny flats on their property is only likely to increase demand. Before March’s election, Planning Minister John Day pledged that regulations would be amended to allow people to rent their granny flats to people who are not relatives, expanding the market significantly.
Not only will carers who are currently allowed to stay in a granny flat be able to provide round the clock care if needed, the market is likely to see a surge in the number of people renting granny flats to strangers. This could offer significant opportunities for property investors to renovate and build on their existing portfolio to maximise their profits.
Understanding the way that changes to regulations can affect house prices is crucial for anyone hoping to enter the property investment market. If you are considering making your first investment or you are looking for help in growing your property investment portfolio, be sure to get in touch with the expert team at Sydney based Rass Global Investments.