Granny flats in Penrith – a solution for all ages
September 7, 2020
The high prices for property in Sydney and the surrounding suburbs are driving house owners or buyers to think outside the proverbial box and to build one in their backyard. Many people are choosing to build granny flats in Penrith both as a profitable cash cow and to answer the housing demand of young couples, singles and of course, good old grandma.
Are granny flats in Penrith on the rise? Yes. Data from The Daily Telegraph shows that in 2014, there were over 4,800 granny flats built in NSW (double the number of similar properties built in 2013 and three times more than those in 2011). Areas that are experiencing notable booms include Penrith.
In 2009, the NSW government made changes to some of its regulations regarding building granny flats which heralded a new era of smarter and modern liveable spaces. Because of this, many people who previously discounted building a granny flat are now building second dwellings or investigating whether a backyard property is right for them.
How much does it cost to build a granny flat in NSW?
A quick Google search will show you just how many companies are willing and ready to build you kit form granny flat. From a simple, box design to two-storey luxury, the costs can range widely. However, an approximate starting price for 60m2 standard build two-bedroom granny flats in Penrith is around $100,000 upwards. These prices will be considerably higher the closer you get to Sydney.
Do granny flats in Penrith rent out?
With so many granny flats rising from the ground, the question must be: are they are all getting snapped up? The rental market for granny flats in Penrith is strong, particularly with the high number of renters in the region. As a landlord, you can expect to command anything from $200-$450 per week, making the second dwelling a desirable financial proposition for homeowners.
What are the rules surrounding building a backyard property?
If you are considering building or converting a second dwelling the legislation is surprisingly simple, and approval is quick to obtain. It’s made more accessible by complying development rules, a few of which are:
- Only 1 granny flat per lot
- The size of the second dwelling cannot be larger than 60m2
- There needs to be a minimum courtyard space
- The building must be a Complying Development, or if not, it is possible to lodge a Development Application (DA)
- The building must follow regulations regarding fire, flood and heritage restrictions and sensitivity to site and land
What are the pros and cons of building or owning a second dwelling?
1. Granny flats are a great way to start an investment portfolio and one that you can monitor from the comfort of your own house
2. Rental return is healthy if you can find tenants. In Penrith, there is a very high number of renters which makes finding tenants far easier than in other parts of NSW.
3. If the second dwelling follows legislation, it can add significant value to a property
4. The process for building a backyard property in NSW is straightforward and simple. If it complies with development regulation, you do not need to apply for a DA. The approval process will take less than two weeks. Some kit form granny flats estimate building time to be 12 weeks (weather dependent).
5. The world is your oyster when it comes to building your second property. There are lots of kit flats which follow specific plans, but you are free to design your own. Going ‘off plan’ allows you to build something that is in keeping with your property or that meets certain specifications such as wheelchair access, garage, outside blinds etc.
Are there risks involved in building a granny flat?
In short yes. Although you might love the idea of a granny flat in your garden, a future buyer of your property may not. So, effectively the unit could affect the value of your home in a negative way.
You cannot subdivide the plot where you build your flat, which means you lose some of your privacy as well as a fair amount of your outdoor space/garden.
You will become a landlord, and hence, you will have to deal with tenants and any issues that arise.
With the COVID-19 outbreak raging across the world, many sectors need immediate help. One such industry that has been walloped is the housing sector, with tenants needing some attention from the government. Ask Trevor Holmes for more information. We are all expected to stay inside our homes to stay safe. And to ensure that tenants continue to stay put in their leased home, the subject of residential tenancy support during COVID-19 is a pressing one. Tenants could be struggling to pay rent month on month even as they grapple with budgets for essential supplies. With landlords themselves being dependent on the rentals accruing from their properties, any delinquencies on payments can upset their cash flows too.
If we were to sum up Glenmore Park, we’d say ‘family appeal’. Why? As parents, a child’s education plays a significant factor in deciding where to live. The selection of Primary Schools in Glenmore Park, offer a highly satisfying mix of top-achieving government schools and excellent yet affordable private ones. In particular, Bethany Catholic Primary School stands out as the area’s highest ranked primary school. Year after year the school produces excellent ‘above national standard’ NAPLAN results. Importantly, students from this school feed through to the area’s sought-after secondary schools. Residents regularly mention the friendly and safe feeling that is part of life in the Glenmore Park area; making it an ideal place both for couples who are planning to start a family and for those who already have children and want to find the perfect location to watch them grow. Penrith being the hub of activities also make the suburb a lucrative place for singles to live. The suburb also offers plenty of other facilities and attributes that families seek, such as pre-schools and nurseries, sporting fields, nature reserves, outdoor parks and green spaces, plus the convenience of a recently expanded shopping centre including a new supermarket and takeaway restaurants Travel wise there is a reliable and convenient public transport system that serves both Glenmore Park and neighbouring town Penrith. By car, Penrith is a 15-minute drive from Glenmore Park. The newly opened pedestrian and cyclist bridge across the Nepean River called the Yandhai Nepean Crossing links Penrith with Emu Plains. The bridge is a great way for families to explore the area and has become a destination in its own right, since its opening in October 2018. Known as ‘the adventure capital of NSW’ there is a host of adrenalin-packed activities for all the family in Penrith including skydiving, water skiing, wakeboarding, an Aqua Park, canoeing and kayaking to name but a few. If you’re in the mood for more sedate activities, you can walk the pushchair and cycle-friendly path alongside the Nepean River, finding a shady place to picnic under the trees, visit the Fire Museum or the Penrith Regional art gallery. For all your shopping needs, the Westfield Penrith Plaza has an exhausting range of fashion outlets, sports stores, a Hoyts cinema and an Aldi supermarket. Conveniently located near the M4 Western Motorway, commuters can drive to Sydney’s CBD in approximately 45-minutes, making trips into the city possible for work purposes but also for weekend outings. You can reach the airport via train, shuttle and night bus.