New rules allow rentable Perth granny-flats
Changes to the rules covering granny-flats in WA now allow home owners to rent them out to tenants other than family members.
The move was designed to ease the crush on rental housing in the resource-rich state making it easier for home owners to earn money from tenants.
The new regulations mean granny-flats can be built in all residential zones as long as there is no more than one main home and one granny-flat on the same block.
The size of the granny-flat can be no more than 70 square metres - or the maximum allowed by the council, if it is different.
It’s reported many Perth residents have been anticipating the rules change, cleaning up granny-flats already on their properties that have either lain dormant or used as storage sheds.
Planning Minister John Day said the allowable floor space for granny-flats would increase to provide flexibility for families to invest in and rent out a granny-flat to students and seniors as a safe and affordable option.
“At the moment, granny-flats must be used by family members or the home owner themselves. By scrapping this old restriction, so called empty nesters and seniors can unlock equity in their homes and receive a regular income, or provide space for a carer to live close by in their aging years,” Day says.
“There is also potential for students and young people looking for affordable accommodation to rent granny-flats.
“Normal planning requirements around setbacks and density will continue to apply, but this change will introduce more flexibility and introduce more rental accommodation to the real estate market.”
It’s easy to see the benefits of building a granny-flat: A decent size one-bedroom, one bathroom flat with a parking space would cost about $100,000-$120,000 to build -- and rent for around $250 or more a week in most Perth suburbs.
granny-flats are also cheap to build – some for as little as $70,000 – but the cost rises depending on the size of the flat and how many rooms are in it. An $80,000 granny-flat rented out for $250 per week is a 16% yield.
Momentum Wealth’s Damian Collins maintains with a potential blended yield combining the original dwelling with the granny-flat yields of around 8% are available.
A local company that specialises in granny-flats reports that their sales have increased by 1000% in five years of being in business, from building one each month in 2008 to building as many as 10 every month during 2013.
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The state government will redevelop big blocks owned by the Department of Housing to build 500 ‘’affordable homes’’ within three years.
Planning Minister John Day says the department has more than 200 blocks of more than 1000 square metres currently vacant or with just one dwelling.
“We will redevelop these large blocks to provide two to three new homes per block, all for sale to Western Australian families,” he says.
Half of these new properties would be available for individuals, couples or families to buy under a state government shared equity program, making property ownership possible for buyers who might not qualify for normal housing loans.
Other changes to the residential design codes include lowering the minimum average lot size for single residential R20 developments from 500 sq metres to 450 square metres in line with previous regulations before a change in 2002.
Day said this would give more homeowners opportunities to sub-divide their blocks.
He said the minimum lot size which required planning approval for most single homes would also decrease from 350 square metres to 260 square metres in a bid to reduce ‘’red tape’’.
However, building licences would still be required regardless of the lot size.
20 Aquila Place,
Rockinham
Rent $380 weekly
This three bedroom one bathroom home (pictured above) has a self contained granny-flat. It has a single carport, lounge, kitchen, meals and would suit a family with teenagers. Sorry no pets.
3 Lillian Street
Cottesloe
Rent $600 weekly
This delightful character home in leafy Cottesloe (pictured above) has a granny-flat at the rear. Beautiful wooden floors and many more character features from an historic era including french doors, wood fireplace and cute balcony.
The house is close to the beach and cafe strip and Mosman Park train station. Freo is just a hop and a skip away as is Harvey Field, Cottesloe Oval and the Seaview Golf Club.
21 Cadd Street
Beaconsfield
Rent $480 weekly
Perfectly located, this two bedroom, one bathroom home (picturred above) has spacious bedrooms, high ceilings, security to doors and windows plus an attached granny-flat.
Step inside this home to find a separate lounge with ceiling fan and gas heater, combined kitchen / dining room and bedrooms with stand alone robes.
The granny-flat has robes, kitchen bench, fridge and dining table perfect for a teenage retreat!
2 Glenview Place
Helena Valley
Rent $750 weekly
Space and secondary accommodation in the heart of Helena Valley. In a quiet pocket at the end of a cul de sac this three bedroom, two bath brick and tile family home comes with a spacious granny-flat/teenage retreat with large bedroom, living area and kitchen. It has a reverse cycle air conditioner.