29 Jun Calculate Your Expected Granny Flat Rental Return
What Will Your Granny Flats Rental Return Be?
If you are building a granny flat for either your investment property, or in your homes backyard with the goal of renting it out, it is important to work out how much rental return you can expect. Obviously your rental return is dictated by your location and the size and configuration of your granny flat.
A quick and reasonably accurate way of working out your weekly rental return is using this tool – Click Here To Open – The Real Estate Neighbourhood Tool. If you type in your suburb to the search box here
From there you need to navigate to the median property prices for the suburb and the rental return for units in the suburb.
In this example the expected rental return on an average 2 bed apartment is $630 per week.
With current interest rates if you are borrowing the money to build your granny flat, the weekly financing cost is about $100-$120 per week, Leaving you with just over $500 a week net positive return in this example.
If you would like to chat about what rental return you could expect on a granny flat in your home or investment property, please give the Lounging Lizards team a call on 1300 657 107.