There's a new housing boom in Australia

If you thought ‘granny flats’ were only to be constructed for ‘grannies’, you might want to think again.

More and more home owners in Australia are considering building a granny flat in their backyard, but it’s not just to help you in your old age.

The rise in granny flat construction is for myriad uses including, keeping the kids at home, having a separate Man Cave or She Shed, and as a means of boosting the household income by renting it out to travellers.

According to Gateway Credit Union CEO Paul Thomas there has been an “explosion” in the number of granny flats being constructed, with the average cost of building one around $100,000. You can’t argue that this is much less than the cost of buying a unit or an apartment.

While building a granny flat isn’t a new thing, and there is some value in having family around you for support without compromising independence, there are some things you should consider before you start pouring the foundations.

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“If people are using it as a rental property, it’s the same as any other rental property,” Carolyn Parrella, general manager at landlord insurer Terri Scheer Insurance told news.com.au.

She says that includes looking after it in a professional manner, engaging a property manager, conducting inspections, and ensuring you have the right insurance cover.

Would you consider building a granny flat for financial gain? Have you ever considered living in a granny flat to stay close to family?

Important information: The information provided on this website is of a general nature and for information purposes only. It does not take into account your objectives, financial situation or needs. It is not financial product advice and must not be relied upon as such. Before making any financial decision you should determine whether the information is appropriate in terms of your particular circumstances and seek advice from an independent licensed financial services professional.