Investing in property can be a great way of generating additional income. But what do you do if you can’t buy a separate property? If you’ve got the space, building a granny flat in your backyard to rent out could be the answer to your problems. And while good granny flats don’t come cheap, they can increase the value of your property.
But, as always – it pays to do your research first to find out whether it’s a viable investment. You’ll have to consider your local council’s building regulations, any tax implications, as well as the demand for rental properties in your area. You also have to check whether your state allows you to rent out granny flats or if you can only use it for yourself.