There has been lots of news surrounding granny flats as an investment. I’m not so sure as to the investment benefit if you are seeking a capital gain from your hard earned money. But if you’re looking to get increased space, such as a home office or an additional rental income from adding a modular home / granny flat, there may be a reason.
I've found company’s advertising modular homes, dont talk about capital growth you should expect from such a capital investment. And, who would want to see their capital reduced by making such an investment. i.e. For every $1 invested you would get less than a dollar back.
Would the astute property investor do this when there are so many rental investment opportunities available around the country. So where does this leave the focussed property investment owner.
Well, with their investment property management skills they may see matters a little differently. The consequence of falling house prices, lower interest rates and generally rising rentals makes for an interesting business investing proposition, with possibility of buying an investment rental property that is cash flow positive from day one.
I'm not one for a granny flat expecting capital growth.
Cheers
Antony
myprop.com.au
