7 Ways Granny Flats & Transportable Buildings Are Used For Domestic and Commercial Use
With the cost of building a new home and materials rising, a lack of land, and people living longer, it has become obvious that there is no shortage of strategies people and businesses are using to save money and make money by buying a portable building.
Below are just a few of the strategies people and businesses use to save or make money when they buy a granny flat or onsite office.
#1. If you need more room, buying a granny flat is perfect because it’s a fraction of the cost of moving, renovating or building a new home.
#2. With a portable building on your residential property you’ll be adding an asset which is attractive, user friendly and will add value to the family home. It’s also a great way to break into the investment property market without adding a huge extra mortgage.
#3. You can rent out your granny flat or portable building on your terms, which helps pay the mortgage and other outgoing expenses.
#4. If you’re in business, owning a portable site building gives you the luxury of moving it wherever and whenever you like without the cost of leasing or renting one.
#5. Buying a portable home means you can also use it as a media room, parents’ retreat, or hobby or guest room, while still increasing the value of your family home.
#6. Subject to where the portable is located, there are no body corporate fees and the initial purchase price will deliver return on investment in as little as five years.
#7. You get the flexibility of more room, moving it whenever you want, and you’ll save thousands of dollars compared to borrowing more money from a bank for a traditional home.
To illustrate the type of return on investment you could get from owning a portable home or granny flat, imagine this:
The ROI is a percentage figure and is simply the return over a 12-month period when it is compared to the purchase price or the original amount you invested.
So lets say you invested $10,000 on a granny flat or portable home and after one year your portable created $1,000 in net profit.
This means your potential Return On Investment (ROI) would be 10% PA, or per year, based on the formula below.
|Investment Outlay* – Own Funds||$15,000||$20,000||$25,000|
|Weekly Rental Return||$150||$180||$210|
|Annual Rent Return PA (Total Benefit)||$7,800||$9,360||$10,920|
|ROI (Return on Investment)||52%||46%||43%|
Please note* The figures above are example figures only and shown for educational and informational purposes. The table above includes building, transport & installation of your granny flat. Exact returns may fluctuate and are subject to variables such as where your property is located, your individual circumstance and access to the property, and our estimate is based on the assumption that you are paying for the full purchase price using your own funds.
As you can see, when you compare this to a $300,000 home rented for $400 per week, or $20,800 PA, which delivers a return on investment of just 6.9%, a 43% return on investment on a granny flat makes good financial sense.