Granny Flats can add value to your property sale price or provide a great rental yield. Most flats in residential areas will earn a similar rent to a two-bedroom unit.
For instance, if you invest $100,000 at 7% interest into building a granny flat at your house in Western Sydney, you can rent it out for approximately $450 a week.
You would be paying the mortgage off at an estimated $200 per week. That is a gross rental yield of 23%, or an extra $13,000 in your bank account per annum.
The average rental yield is 15-18% depending on where you live and is usually higher in Sydney and surrounding suburbs where Granny Flat Leaders currently builds.