Granny flats are self-contained living areas located on the property of another house. It’s called a granny flat because it is a popular option for families looking to house ageing parents, without crowding an existing house.
Most common arrangements involving granny flats:
Granny flats can be fantastic ways to house family members or receive additional rental income, whilst maintaining a sense of privacy and independence in everyone’s lives. There are, however, some factors to take into consideration before establishing a granny flat on your property.
Even if the arrangement you are making between yourself and a loved one seems straightforward, there can be issues that arise in the future if adequate steps are not taken before beginning the arrangements.
You will need to consult with a third party and/or council before you begin any plans for establishing a granny flat on your property. There are differing state laws within Australia involving granny flats – in NSW, you will need to lodge an application for a granny flat as a complying development. To do this, you will need to complete and submit your nominated accredited certifier or Complying Development Certificate (CDC) application form, approved by your council.
You’ll also need to think about ongoing considerations. ‘Granny flat interests’ or ‘granny flat rights’ are agreements in which one party pays for the right to live in a specific home for life – one that does not belong to them. Common granny flat interest includes arrangements involving a parent moving into a child’s home or the child moving into the parent’s home. These arrangements may not necessarily involve the transfer of money between parties.
Issues that can arise:
There are companies you can go through to establish approval for the granny flat plans for your property. Some basic requirements that must be met include:
A granny flat can be an economical and suitable way of finalising living arrangements within your family, as well as adding value to your home and creating rental return. You must ensure that all planning requirements must be met before any construction starts.
It can be difficult to know how to begin the process of establishing a granny flat on your existing property.
East Coast Conveyancing can conduct inspections and liaise with vendors on your behalf to take the stress out of establishing new property conditions and make sure you're fairly represented.
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