Australian property: Grandma’s flat push may make unsuspecting homeowners vulnerable


Grandma’s apartment, backyard studio or independent apartment-whatever their name, real estate experts warn that these new features are not a plan to get rich quickly.

The tight rental market has prompted some homeowners and investors to look for ways to increase real estate profits by turning one family into two.

According to data from SQM Research, the vacancy rate in Melbourne fell to 3.5% in June, while the vacancy rates in Sydney and Brisbane fell to 2.8% and 1.3%, respectively.

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Some experts say that the grandmother’s house may actually become an obstacle to potential buyers in the future.Picture: Provided


In Adelaide, Canberra, Darwin and Hobart, the vacancy rate is less than 1%.

Ian Ugarte, an advocate for affordable housing and the co-founder of Small is the New Big, urges homeowners to carefully consider their situation before building a grandmother’s house.

“As the vacancy rate of rental homes hit a record low in June, many homeowners hope to take advantage of the rent shortage and increase their already stretched income. They believe that the only way to accommodate paying tenants is to build a separate unit that can be used by grandmothers. The form appears at the back,” he said.

Grandma Apartment

The grandma’s apartment was built by the owner to earn rental income. Picture: Provided.


“But they soon discovered that this is not only an expensive job, but also that it cannot be rented out legally in all states in Australia.”

Many parliaments across the country strictly supervise the construction and increase of such rents by setting complicated conditions that are difficult to understand and costly.

Propertyology’s buyer’s rights advocate and research director Simon Pressley (Simon Pressley) said that many potential investors may be attracted by the promise of one asset and two incomes.

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“The timing of talking about this is impeccable. Due to the leasing crisis, there will be some well-meaning people who think it is time to maximize their profits, get two assets for one price, and then blindly invest in them, without being thoughtful,” he Say.

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Michelle, her mother Beverly and daughter Chantel are in Heathmont’s grandma’s apartment.Photographed by Wayne Taylor on June 14, 2019


Mr. Presley said that the grandmother’s apartment is ideal for homeowners who have selected multiple generations at one address, or anyone who needs an alternative job in a home-based solution.

“Everyone should do whatever they want, but if they make the decision purely as an investor, then it is wise to never build a grandmother’s house. This does not mean that they will not make money, but in my opinion, what they do immediately is Make sure they make less than what they could have earned.”

“Try to predict the next 10 to 15 years, and what will happen if you want to sell the house for some reason. Before buying a house with a grandmother’s house or building a house, the thing to consider now is the transfer of the property. The sales market will be greatly diluted,” he explained.

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The grandmother at home is behind.


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Mr. Presley said that since about 70% of buyers in most markets are owner-occupiers, assets that primarily attract investors will attract a smaller group of buyers.

“Immediately you created a situation that reduced competition. Now, I’m not saying that there won’t be any owner-occupiers who want a house with grandma lying flat in the back, but they are few and far apart,” he added. .

“Owners will see a traditional three-bedroom or four-bedroom house, and think there is a corner where you can put a vegetable field, or the space on the block can be expanded or put into a swimming pool.” Mr. Presley said.

“Suddenly, the grandmother’s house became an obstacle for all these potential future buyers.”

Mr. Ugarte agreed that for most homeowners, it is often simpler and more cost-effective to partially remodel existing houses to create “micro apartments”.

Grandma Apartment

Although the grandmother’s room may be practical for some buyers, others may like to use the space for other things. Picture: Provided.


“Unlike the prospect of opening up an entire home to a complete stranger, shared life may mean partly remodeling a room (such as a garage) to create a completely independent living area-including one’s own bedroom, bathroom, The living room tenant’s room and kitchenette,” he said, adding that part of the renovation can be completed in a shorter time and at a fraction of the cost.

“As more and more singles and couples are looking for rental options across Australia, and they have fewer affordable options than ever before, it’s time to rethink housing solutions and create rental options that can be implemented immediately Now,” he said.

“It is important to retain relevant national policies and regulations that support such partial renovations to ensure that we can provide affordable housing opportunities anywhere, while reducing the mortgage pressure on homeowners. For all interested parties , This is obviously a’win-win’,” Mr. Ugarte said.



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About the Author: Agnes Zang