While there might be marginal changes in vacancy rates from month to month, our current tight rental market is here to stay – barring either a dramatic change to short term accommodation regulations or a new suburb worth of homes being dropped into the market – neither of which is particularly likely.
Whoever comes up with the magic solution is likely to make an awful lot of money, but in the meantime one area that is getting a higher level of attention is that of tiny homes and/or granny flats.
Traditionally designed for granny herself, an older parent that lives with the family or maybe a teenager not quite ready to go out on their own, many homeowners are now looking to this style of accommodation as a way to help make ends meet in a time of ever rising costs of living. With more Councils on board with bringing this style of arrangement into the fold officially, it can even go beyond a mortgage helper to a genuine option for investment.
Typically costing anywhere from $30,000 to $100,000 (or more, depending on your style and budget), I’ve heard of granny flats regularly achieving anywhere from $250 to $400 per week (or more), even on long term leases. In the right location with the right level of amenity or scenery, holiday letting might even net you more.
As far as what this kind of home looks like, we’re at the point it could be any number of things, depending on the location, the purpose and the budget. It could be its own mini house, rendered block and colourbond roof, a-la your traditional granny flat. It could be an Instagram worthy timber dollhouse creation full of neat nooks and flexi-spaces. It could even be a caravan that’s put down roots (and potentially a permanent plumbing set up). Whatever the case, these mini home additions are hot property.
If this is sounding like it might be perfect in your backyard, it bears doing your homework first. Tiny homes generally have the benefit of being quick to build and easy to transport but there can be a wide gulf in quality (and safety) between operators – whether you buy local (and there are some great options here in Cairns) or look to import. Despite advertising to the contrary, these also generally require a level of Council approval, particularly when fixed in place and hooked up to water, power and sewer. So do your homework, talk to an expert, and don’t forget – sometimes some distance between the in-laws can be a good thing…