The vacancy rate for rental accommodation in the Sydney region is tight, with supply struggling to keep up with demand.
Steady levels of migration and low first home buyer numbers are mainly behind the upturn in rentals.
2 words for investors to remember are: ‘Granny Flats’. These are making a real comeback as a profitable investment opportunity.
To meet the need for affordable accommodation, Granny Flats are booming, with more than 4,818 built last year in Sydney and NSW alone - nearly double the previous year and three times more than 2010.
Some Sydney landlords are getting thousands of dollars a month for Granny Flats, as rents for this style of accommodation jumps to the highest on record. According to Flatmates.com.au, the weekly asking rent for a granny flat increased 5.95 per cent over 2014/2015. (This is a higher rate of growth than houses: 3.9 % and apartments: 1% - making the Granny Flat an attractive option for real estate investors).
Tenants are showing strong demand for affordable accommodation, with rents varying according to location and size of the Granny Flat, but generally those wanting to rent one should expect to pay an average of $290.00 per week.
Where to find the 3 C’s: Concept, Council approval and Construction.
At Ian Cubitt’s Granny Flats and Studios, we will look after your project from start to finish. We are proudly the largest builder of Granny Flats in NSW and currently constructing over 300 new Granny Flats a year.
The construction of a Granny Flat by Ian Cubitt’s is a steady investment with rock-solid ongoing returns that can give you peace of mind in your retirement. As specialists, we can ensure that you will have the best opportunity to take advantage of an investment that can:
- Pay itself off in 5-7 years
- Provide a projected return on revenue of a healthy 15%-18%.
We would be glad to advise you of your options with a free home consultation.