Investment & Finance

Granny Flats as Investments

The housing shortage has become a crisis in Australia and with record low vacancy rates finding a rental property is difficult and expensive.

Modular granny flats have a very low entry price compared to traditional investment properties with high rental yields and the benefits of tax deductions. No land to buy, no stamp duty and granny flats regularly return in excess of 10% per annum. Rental yields vary across the country but research has shown that wherever they are in the country the rent vs the purchase price is still very strong.

Zoning in some regional areas permit multiple cabins on one block making them perfect for AirBnB or local workers looking for accommodation. MMC Modular has close relationships with real estate agents nationwide that can help you with any property management requirements.

MMC Modular also build to various levels required by the NDIS and a modular unit built to suit NDIS occupants attract a higher rental return.

Ideal for Self Managed Super Funds

Currently yields are excellent and granny flats and cabins offer great tax deductions and the potential for capital growth. With over 30 years of international experience in building investment property our consultants can provide you with a sample cashflow for an indicative return on investment.

If you plan on renting the unit and once your build has started, we will notify your nominated property manager of the delivery date to provide them with enough time to source a tenant that can move in once the installation has been completed providing you with an immediate income.

Granny Flat & Cabin Finance

Our independent finance consultants will explain your options including eligibility. Several options are available to finance your investment including releasing the equity in your home, personal loan, restructuring your current mortgage to include a construction loan or even a reverse mortgage is available for those over 60 for those that don't have a regular income.

Home Equity is the generally the easiest and so the most common way to finance a granny flat. The financier will need to value your existing home and if the total of your current mortgage and the cost of the granny flat are less than 80% of the total value and you have a good credit history and income to service the loan, you are well on the way to an approval.

Your granny flat will also contribute to the repayment of the mortgage.

So what’s the process?

Firstly talk to our friendly team to establish what is the best modular option for you.

Your consultant will discuss your budget, establish the best size and location on your property and answer any questions that you might have about our homes.

You can use our JUMP START OPTION that includes a review of your property, confirmation of any council requirements and a soil test to identify any potential issues before signing your build contract.

Build time is normally 6-8 weeks during which time your site will be prepared with engineer designed footings and preliminary connection of services. Installation normally takes on average 2-3 days.

Council Approvals

The steel structure and chassis is issued with engineer's certificates prior to manufacture and after installation. Plumbing and electrical certification follow and the final building is certified once on site and connected to services. Certification is issued to satisfy each state requirements. In Queensland a Development Application is usually not required if the property meets the following criteria:

Land is zoned residential with a minimum lot size of 450m2
Separate pedestrian access to the granny flat
The same owner for the main house and granny flat.
Up to 80m2 living space is allowed for the granny flat. Decks and verandahs can be extra.

In New South Wales if your land has a minimum area of 450 m2 and the granny flat does not exceed 60 m2 (internal size) you may not need council permission.

Some conditions do apply such as the minimum distance from the lot boundaries and main dwelling and if you plan on renting out the granny flat.

We can assist with these issues on your behalf.

One of the easiest way to determine if your granny flat will meet your council's criteria is to choose our JUMP START OPTION that will be conducted by one of our licenced builders.

We understand that this will be a new experience for you so we adopt a full "hands-on" approach, managing each step from initial design, approved planning to council approvals, freight, onsite works to connection of services and final installation.