Granny Flat Rental Return

21% Return on Investment

A “Cabin Life” Granny Flat is a great way to increase your rental return as demands for affordable accommodation have never been stronger. Thanks to new legislation passed by the NSW government and the realization that we have a serious affordable housing issue in Australia, it has never been easier to get approval for a “Cabin Life” Granny Flat. So if you own a home or an investment property and you want to increase your ROI (Return on Investment) just have a look at the figures below.

Investment Property Plus

The average rental income you could receive on a ”Cabin Life” 20 m2 fully self-contained granny flat is approx. $180/wk or more and for a larger 45m2 Cabin the rent could be more like $250/wk depending on your locality.

So let’s take for example a Deluxe Cabin which we you can install on your property complete with bathroom and kitchen for around $60,000. If you were to get an increase on your home loan of $60,000, the principal and interest repayment at 6% is $344.00/mth or $80/wk. (Loan term 30 years. Interest rate may vary) If your rental income is $250/week minus your weekly repayment of $80/wk, then you will be left with $170/wk every week. That will help you pay your home loan of a lot sooner. These figures are only for example purposes.

Try this easy to use loan repayment calculator to find out how this can work for you.

In fact that is a percentage return of : $250 x 52 weeks divide your initial investment of $60,000 x 100 = 21% return on investment and a probable increase in your property value. Try getting that kind of return anywhere else….

Figures are for example only and not to be taken in any way as financial advice.