Change in Queensland Granny Flat Regulations
It is now easier for Queenslanders to rent out Granny Flats to anyone. On 5th April 2022, the Queensland Government eased its regulations, allowing owners to rent their Granny Flat to people beyond their immediate family. This is known as secondary dwelling; a trend which is predicted to provide housing solutions to the wider community.
Since 2015, the average number of people per household across Queensland has fallen from 2.6 to 2.5, indicating that despite the rapidly growing population, it’s only spreading thinner. This has led to 77,000 extra homes being needed to house the same number of people, and a housing and rental market which is becoming increasingly harder to enter. House rents have risen by 33%, 59% of low-income households are facing unaffordable housing costs, and 15% of households are in severe housing affordability stress (when the rent accounts for more than half their total income).
Secondary dwellings help address a variety of the current housing crisis factors, providing benefits to not only granny flat owners but also the wider community. We’ve got some of the key factors addressed below:
Extra Income and Increasing Property Value
There are several ways you can utilise your return on your investment with a Granny Flat. Some families have opted for downsizing whilst they rent their main house. Others have rented their granny flats for around $200 – $600 a week. Both are great ways to help with mortgage bills and generate extra cash flow, all whilst adding a possible 30% to home value.
Affordability
Granny flats are recognised as a way to ease market pressures, offering more permanent housing options for people in need. Brisbane house rents have increased by 33%, making housing less and less affordable. It’s becoming harder for new homeowners to enter the property market and is pricing out young adults. Granny flats are seen as the cost-effective alternative, filling the housing price gap and providing affordable housing.
Granny Flats are also seen to provide an option over maxed out caravan parks, couch surfing and overcrowded houses, as well as providing people with a chance to live in areas that they previously could not afford.
Downsizing and Living Trends
After Covid, the way in which live drastically changed. There has been an increased interest in downsized living space, not only due to the price but also lifestyle. Minimalistic living is becoming increasingly popular, with more homeowners opting for the van life or tiny homes. Granny Flats accommodates to this lifestyle, offering a downsize, whilst being customisable to needs and design choices.
Working from home is another prominent trend that came out of Covid. Although the comforts of not needing to leave the house were a prominent benefit; as seen through many of the funny Facebook and Tik Tok videos, the work style misses the elements of privacy and workspace that many people have in the office. Granny Flats are now also being utilised for office spaces. This provides not only the comforts of not needing to make long commutes, but also privacy and workspace that is well needed.
Multigenerational Households
The Granny flat gets its name from the dwelling’s original most common use, an accessible housing space for residents’ parents. This is still true. Granny flats provide a customisable design for the elderly which can accommodate to accessibility needs and offer a smaller, private space. However, Granny flats are for more than just grannies. Granny Flats can also be a private space for younger members of the family such as the teenagers and young adults. Building a granny flat allows these members to have the valued privacy, whilst staying connected and involved with the family, all without having to spend a fortune to enter the property market (See our article ‘Why I love living in a granny flat’ for more information on the experience of this type of living).
For those who have the space, of which half a million property owners in Queensland do, building a granny flat is not only a significant long-term investment but also a great way to help the community.
