A Complete Granny Flat Guide for Home Owners

SYDNEY - Sept. 4, 2014 - PRLog -- Granny Flats – The Meaning

Granny flats are regularly defined as "secondary dwellings” because they are secondary to the main property. Such flats are usually used by families to accommodate aging parents. The dwellings must be self-contained. Granny flats have taken off in recent years, and if you decide to use the dwelling as an ideal situation for investment, it will give you a good rental return.

The Benefits of Granny Flats

Granny flats are becoming increasingly popular amongst home owners and the benefits in building a granny flat are many. Here is a list of the most popular benefits for you to consider:

>> They are used to accommodate extended family members

>> They are used as a home office, or

>> They are used to generate income

Factors to consider before constructing a Granny Flat on your Property

If you want to construct a granny flat, you should do some homework first, and before you start your construction project you will need to:

>> Contact your local council and find out about the current legislation surrounding granny flats

>> Find out if your site complies with the development set out in the State Environment Planning Policy (SEPP), and

>> Check for any legal and financial requirements

Common Finance Options for constructing Granny Flat

If you elect to construct a granny flat on your property and you want to get suitable finance, you will find there are a number of financing options available such as:

>> You can consider an Home Equity Loan where you can use the current equity available in your existing property and on which your granny flat is to be built (i.e. this can be by a way of having an additional "loan added" to your current home/investment property loan), or

>> You can utilise a Granny Flat Loan ( http://www.singhfinance.com.au/residential-finance/granny... ) to construct your new granny flat. In this situation,  the loan will be considered for approval based on the value of your existing property and the value of the granny flat that you want to build

If the purpose of your construction is to generate rental income, so that you can make extra repayments towards your normal weekly repayments, you should read the following example to fully understand what your benefits will be in both - Interest Saved and Time in Years Saved. The example assumes:

1. That you need a granny flat loan for construction

2. You will receive $300  rental income from the flat, and

3. You are only willing to contribute an additional amount of $200 towards your weekly repayments

Loan Amount: $530,000
Normal Loan Term: 30 years
Interest Rate: 5.00%
Repayment Frequency: weekly

Normal Weekly Repayment:$656
Additional Weekly Repayment: $200

From the example above, your benefits will be:

Interest saved, by making extra repayments: $217,815

Time in Years Saved, by making the extra repayments: 11 years and ten months

So, this is how you can benefit from a granny flat and save money and time. If you have enough vacant area on your property, check the legal requirements and apply for a granny flat loan. It’s time to make optimum use of your property.

Contact Singh Finance and avail quick approval on granny flat loans. The firm’s home loan experts will understand your financial situation and suggest you the best financial solution. Call on 0424 190 908 and get information about protecting your property with home insurance ( http://www.singhfinance.com.au/insurance/building-insurance ) as well.