Living Large In Small Spaces: The Smart Investment Of 1 Bedroom Granny Flats
As housing costs continue rising, savvy homeowners are tapping into the potential of accessory dwelling units (ADUs) - also known as granny flats or in-law suites. These small secondary dwellings built on existing properties offer big benefits. Specifically, compact 1 bedroom granny flats pack a profitable punch for owners as smart rental investments as Granny Flat Solutions. Keep reading to learn why adding a 1 bed granny flat can pay off through added rental income, property value, flexible space and more.
Maximizing Limited Land
Constructing fully detached ADUs with multiple bedrooms takes up sizable square footage. But owners with limited land can still capitalize on their lot’s potential by going small. Think cozy 1 bed granny flats ranging 400 - 800 sq ft built above garages, in basements or back corners of the yard. Their small footprint still provides comfortable living space while leaving more room for outdoor areas. Jason and Andrea added a 500 sq ft granny flat with a Murphy bed above their garage. Now they enjoy both yard space and $1500 a month from renting it out.
Cost-Effective to Construct
Large scale home additions require major investments that take years to recoup. However, building a compact 1 bed ADU costs significantly less upfront. Slimmed down builds save on materials, contractor fees and utility connections. Owners start benefitting much sooner. Kara spent only $55,000 constructing her modest 1 bed granny flat. Within two years, rental income paid off the initial investment.
Faster Approval Process
Some towns have eased zoning for smaller contained ADUs. The streamlined approval process skips permitting hoops required for large additions. Mark’s 1 bed granny flat breezed through council approval in just 2 months. He saved nearly a year of waiting compared to a 2 bed addition.
Smart Rental Potential
While tiny, 1 bed ADUs still offer comfortable living spaces in high demand. They best suit singles, couples and small families - an ample rental demographic. Unlike cramped studios, 1 bed ADUs provide living/dining area separation. And the discrete independence appeals to renters. Cheryl captures premium rental rates from young professionals wanting their own space without compromising on amenities like parking and laundry access.
Ideal Flex Housing
Granny flats also provide flexible auxiliary space for owners' evolving needs. Some use them as home offices, art studios or recreation spaces. The separate unit accommodates multigenerational family expansions down the road. And ADUs can be converted to rental income streams in retirement.
Added Property Value
Fact: ADUs boost property valuations. One bed granny flats maximize this benefit. A smaller build cost means faster gains in value. Owners reap rewards not just from rental income but increased home equity. Top real estate agents say that their $70K 1 bed granny flat increased selling prospects by $125K - nearly double.
Conclusion
In hot housing markets, maximizing available square footage pays. Small secondary dwellings built on existing properties offer big benefits. Specifically, compact 1 bedroom granny flats pack a profitable punch for owners as smart rental investments.For budget-friendly builds, smart rentals and flexible equity, compact 1 bed granny flats are an ideal investment.
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