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Granny flats and man-caves are ...

Granny flats and man-caves are booster for Australian property

It seems that there has been a recent surge in Australia in the amount of properties that are adding granny flat extensions, which has been helpful both for relatives and homeowners.

Those who own their houses and have sizeable back gardens are building extra flats on their land, not only for elderly relatives but also for their adult children, reports news.com.au.

Often known as man-caves or she-sheds, these serve another function by being rented out to travellers to generate extra income for the house.

Gateway Credit Union has provided research that says one-third of homeowners in Australia are now considering building a granny flat. Similarly, the data shows that 22 per cent are open to the idea in general as a good way to earn more money.

When these aren't being used for Airbnb-style purposes, these flats provide extra space to families or an office that is away from distractions in the house.

Paul Thomas, chief executive officer of Gateway Credit Union, says that the average cost of adding one of these flats can be around $100,000. However, this is much less than it would be to buy an apartment.

He comments: "There are plenty of granny flat builders and, as with any construction, you need to research the options well."

A couple who built a granny flat for their daughters spoke to news.co.au, saying "it was to keep the family together. We knew the girls wanted a little independence and we do have a nice large block of land".

Family benefits are obviously a big draw for people when it comes to considering adding one of these flats to their property. However, it's safe to say that having this extra space would add a great deal of value to a homeowner's land, making it an excellent prospect when it comes to reselling.

All information provided is of a general nature only and does not take into account your personal financial circumstances or objectives. Before making a decision on the basis of this material, you need to consider, with or without the assistance of a financial adviser, whether the material is appropriate in light of your individual needs and circumstances. This information does not constitute a recommendation to invest in or take out any of the products or services provided by SMATS Services (Australia) Pty Ltd or Australasian Taxation Services Pty Ltd.

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