As house prices across the country continue to

soar quite high, granny flats in Australia have become more in-demand than ever in recent

years. Known for their versatility, these secondary dwellings serve as an investment

property for some, generating positive cash flow and providing tax benefits, or serve as an

extension of the existing property, offering

more space for growing families and changing lifestyle requirements.

To answer to the growing demand for

granny flats, the Western Australian government has recently approved

changes to Local Planning Schemes regulations to make the process of

building granny flats and other home additions easier.

Building Granny Flats: Reforms on Local Planning Schemes

Regulations

Streamlining the Process

According to local authorities, the revisions in regulations will

take effect on October 19. With the new ruling, residents will be

able to save up to 60 days when building granny flats and

other property extensions, as submission of application

documents to the local government will no longer be

necessary.

At the same time, renovation

projects will not need approval when changing a property from

one permitted use to another. Authorities understand that this

process takes too long and causes inconvenience for

builders; the new regulations take this hassle out, benefiting

builders who usually secure duplicated approvals to build a

compliant property on residential zoned land.

Representatives of the local government explained

that the goal is to provide comprehensive

regulations. Currently, there are more than 150

different local planning schemes in the state; with

the reforms, WA will be able to establish a

consistent approach to

planning.

With these reforms on the way, industry

experts believe that this will further hype interest for granny flats, most likely drawing

investors in. Recent news reports say that the number of Perth homeowners investing

in secondary dwellings has increased, with rental returns from traditional property

investments down $30 from May of last year.

Ever since the government allowed the rental of granny flats, more investors have

considered these dwellings to be a source of profits. According to experts, these

investment properties have a yield of10-11 per cent, proving to be a lucrative business.

Demand for Granny Flats

The demand for granny flats is growing, and as reforms for easier

building process are on the way, a greater number of people will be more interested in these secondary dwellings.

RESOURCES:

http://www.grannyflatswa.com/Our-Granny-Flat-Extension-Range

http://www.perthnow.com.au/realestate/news/granny-flats-perth-homeowners-cash-in-on-backyards/story-fnhlgriw-1227347598044

http://www.watoday.com.au/wa-news/the-rise-and-rise-of-the-granny-flat-20130501-2it7s.html