A Complete Granny Flat Guide for Home Owners

Granny Flats – The Meaning

An image of a Granny Flat

Granny flats are regularly defined as "secondary dwellings” because they are secondary to the main property. Such flats are usually used by families to accommodate aging parents. The dwellings must be self-contained. Granny flats have taken off in recent years, and if you decide to use the dwelling as an ideal situation for investment, it will give you a good rental return.

The Benefits of Granny Flats

Granny flats are becoming increasingly popular amongst home owners and the benefits in building a granny flat are many. Here is a list of the most popular benefits for you to consider:

• They are used to accommodate extended family members

• They are used as a home office, or

• They are used to generate income

Factors to consider before constructing a Granny Flat on your Property

If you want to construct a granny flat, you should do some homework first, and before you start your construction project you will need to:

• Contact your local council and find out about the current legislation surrounding granny flats

• Find out if your site complies with the development set out in the State Environment Planning Policy (SEPP), and

• Check for any legal and financial requirements

Common Finance Options for constructing Granny Flat

If you elect to construct a granny flat on your property and you want to get suitable finance, you will find there are a number of financing options available such as:

• You can consider an Home Equity Loan where you can use the current equity available in your existing property and on which your granny flat is to be built (i.e. this can be by a way of having an additional "loan added" to your current home/investment property loan),or

• You can utilise a Granny Flat Loan to construct your new granny flat. In this situation, the loan will be considered for approval based on the value of your existing property and the value of the granny flat that you want to build

If the purpose of your construction is to generate rental income, so that you can make extra repayments towards your normal weekly repayments, you should read the following example to fully understand what your benefits will be in both - Interest Saved and Time in Years Saved. The example assumes:

1. That you need a granny flat loan for construction

2. You will receive $300 rental income from the flat, and

3. You are only willing to contribute an additional amount of $200 towards your weekly repayments

Loan Amount: $530,000

Normal Loan Term: 30 years

Interest Rate: 5.00%

Repayment Frequency: weekly

Normal Weekly Repayment: $656

Additional Weekly Repayment: $200

From the example above, your benefits will be:

Interest saved, by making extra repayments: $217,815

Time in Years Saved, by making the extra repayments: 11 years and ten months

So, this is how you can benefit from a granny flat and save money and time. If you have enough vacant area on your property, check the legal requirements and apply for a granny flat loan. It’s time to make optimum use of your property.

Contact Singh Finance and avail quick approval on granny flat loans. Don’t worry if you have low documents. The firm’s home loan experts will understand your financial situation and suggest you low doc home loans in Australia for building a granny flat. Call on 0424 190 908 and get information about pre-approval on bad credit home loans.

Get the Right Home Loan Package with Singh Finance

Home is the single largest purchase of your life. So, you should not commit any mistake while getting a home loan package. Home financing is complex because each lender/credit provider offers different interest rates and repayment types. When you have to choose a suitable home loan package, it is important that you work out the numerous options, and features available. And, it is advisable that you take help of experienced finance brokers before you sign up, and this is where Singh Finance can help you.

The right home loan package for you should have a particular combination of features, services and interest rate. Singh Finance will provide you with the power of fast home loan solutions, and the firm’s professionally qualified and specialist finance brokers will help you get the best home loan package. Because they will:

• Identify a suitable home loan package that will match your individual needs

• Liaise with the lenders/credit providers on a regular daily basis

• Provide you with a convenient pre-approval so that you will have the peace of mind knowing that your home loan has already been assessed by an accredited finance broker, and

• The pre-approval option is proving to be a boon as it gives you the upper hand when negotiating the sale price with the vendor or real estate agent

"Our mission is to make getting a home loan easy for you the first time and every other time you seek to do business with Singh Finance," said Mr. Singh of Singh Finance.

So, before you shop around for the best home loan deal, you should visit www.singhfinance.com.au or speak to one of the firm’s professionally qualified and specialist finance brokers at 0424 190 908 who will take the time to explain all of the following options and features being offered:

• Variable or Fixed Interest Rate Home loan

• Interest-Only or Principal and Interest (P&I) Repayment Home Loan

• Combination (Split) Interest Rate Home Loan

• Redraw and Access Availability, and

• 100% Offset Account

Singh Finance is a well-established and reputable finance brokerage firm providing a wide range of financial solutions and insurance packages. In addition to providing Home Loans, the firm also specialises in Car Finance, Truck Finance, Commercial Loans, Medico Home Loans, Pharmacy Loans, Personal Loans, Equipment Finance, Development Finance, Comprehensive Car Insurance, Home & Contents Insurance and Loan & Mortgage Protection Insurance. Its team of professionally qualified finance brokers has the experience of 25 years, and they possess an in-depth knowledge of finance.