It’s time to rethink the ‘granny flat’. Building a small home in your backyard no longer means compromising on quality, technology, or architectural flair – and investors are taking notice. In partnership with a leading Australian owned modular building company, we’ve created a game-changing Nano Home solution that’s appealing to a new kind of property investor – and generation. Nano Homes are high-quality, pre-assembled homes designed to fit in the backyards of existing properties. These seven reasons explain exactly why Nano Homes can make a powerful investment.
1. Massive rental yield potential
Turning your unutilised land into a source of income is a pretty amazing idea – and one which the Nano Home is making a reality for homeowners across Australia. In parts of Sydney, investors are earning as much as $575 per week from their Nano Home, which equates to more than 14% in rental yield. That’s a result that far outweighs most traditional rentals.
2. Minimal fuss, maximum impact
A complete turn key solution, it generally takes no more than 12 weeks from your initial consultation and site assessment to have the keys to your Nano Home in your hands. The modular homes are created off-site, which means minimal disruption to you, and they are installed in as little as five days by the time they arrive at your address. But make no mistake; this is not a no-frills affair. Our Nano Homes feature standard premium design features like ducted air conditioning, double glazed windows, European appliances, lighting control, upmarket finishings and more.
3. Value for money: low cost, high rental yield
If you’ve got a block of at least 550sqm then you could be eligible for a Nano Home. Since you’ve already got the land, all you need to do is pay for the home, which will set you back around $139,920. Many owners and investors find the value of their property immediately goes up by more than this cost.
If the price sounds higher than you may have anticipated, consider this: to invest in a Nano Home means you invest in high quality fixtures and finishes, even en suites. This translates into greater depreciation benefits than a standard granny flat, giving you substantial tax savings. It also means you’ll attract longer lasting tenants and produce higher rents. It’s likely that most comparable sized dwellings in your suburb are worth three, four, maybe even five times as much – making this an attractive low-cost investment.
4. Low risk
Building on the previous point, the relative low cost of Nano Homes also makes them a far less risky investment. What’s more, they have a range of uses – from rentals (pending your location), to creating additional space for your family, grandparent accommodation, an Airbnb space or simply adding value to your existing property. Our Nano Homes are built with quality in mind and are ISO 9001 and ISO 14001 compliant, giving you greater confidence that your investment is sound.
5. No lengthy approvals
In New South Wales your Nano Home can be approved as either a Complying Development Construction (CDC) or with a Development Approval (DA). For your Nano Home to be approved as a CDC there are a few boxes that need to be ticked. For example, the maximum floor area can be no greater than 60 square metres, the land cannot be subdivided, and the Nano Home must meet the planning controls such as building heights and setbacks for the SEPP (other regulations apply). If your Nano Home does not qualify as a CDC, or you live outside of NSW, we can assist you with your DA. In fact, we will manage all the paperwork and can even assist with finance. The aim is to keep it as stress free as possible.
6. Built to last
A solid steel-framed construction built to above Australian standards, quality fittings and appliances and a 25-year warranty combine to give you peace of mind that your Nano Home through Providence will stand the test of time.
7. Adapt to changing market demands
In many ways, small is the new big – with a growing preference amongst younger generations for less space and maintenance, albeit with greater proximity to the city. To invest in a Nano Home, particularly if your property is situated in a sought-after suburb, provides supply to meet the demands of a new generation of dwellers. Plus, being generally closer in proximity to landlords, Nano Homes often attract better-quality tenants.
Want to know more about how to invest in a Nano Home?
When you invest in a Nano Home you can drastically increase the value of your property whilst creating an additional source of income. Explore our website to find out more about these small homes with huge potential.
Written by Lynton Stevenson, Managing Director, Providence Property Group.