Granny flats are becoming one of the hottest finds in Australia’s booming housing market.
The demand for tiny dwellings, also known as “mother-in-law apartments” or “in-law suites”, has been rapidly spreading throughout the country.
Jeff Cox, a property owner in Mona Vale, along Sydney’s Northern Beaches recently paid about $130,000 to build a two-bedroom, 60-square-meter granny flat behind his home. His neighbour is also erecting a granny flat beside it.
“The great big patch of grass down the back was really only used by the dogs running down there from time to time and the lawn mower man coming to mow it,” Cox said. “I’m not sure how many investments there are in the world where you put down $130,000 and get a return of $35,000 a year for good.”
Cox gets $680 a week from strangers as rental fee for the tiny flat.
“Demand has basically skyrocketed,” said Mark Moumdjian, operations manager at Ian Cubitt’s Granny Flats and Studios. “We build in excess of 300 a year, whereas, say about five years ago, we were doing more like 30 or 40 a year.”