Start An Investment Portfolio Or Build More Wealth Renting Out Your Granny Flat
Do you own a residential property and you’re thinking of ways you could pay off your mortgage sooner or inject some cash flow?
Maybe you already own an investment property and want to keep building your portfolio?
At Superior Portable Cabins we can help you make your granny flat rental dream come true affordably and more easily than you ever thought possible.
Subject to the amount of land you have, our granny flats are the perfect way for you to:
- Break into the investment property market
- Create wealth
- Reduce tax
- And improve the current value and resale value of your residential property
Not just for residential property owners…
Another segment of people who buy our granny flats are current property investors. They purchase them and in many cases place them on their existing investment properties to increase the rental return and minimise tax.
Here’s a general case study of what type of return on investment you can acquire using a granny flat as a rental property…
The figures shown below are for the return on investment over 1 year (12-months) taking into consideration and comparing it to the original purchase price of your granny flat or portable building.
For this exercise let’s say you purchase a granny flat for $10,000 out of your own money and after 1 year your granny flat brought in $1,000 of NET profit.
This gives you a return on investment of 10% per annum based on the following calculation formula:
Purchase Price = $10,000
Net Profit = $1,000
Total = $11,000 – the purchase price of $10,000 which equates to a 10% return on your investment.
How does this compare with traditional property investing?
Unlike traditional property investments where the purchase price is upwards of $300,000 – $400,000 (subject to where you are purchasing) using the example below you can see that:
- Buying a granny flat and renting it out not only delivers a high return on investment but is nowhere as large an outlay or commitment as a traditional investment property.
- And that it can deliver a 43% return on your investment which is quite high when you compare it to buying a $300,000 investment property rented for say $400 a week, which is $20,800 per annum; just a 6.9% return.
Below is a case study and example of the return on investment on a Superior Portable Cabins granny flat
|Investment Outlay* – Own Funds||$15,000||$20,000||$25,000|
|Weekly Rental Return||$150||$180||$210|
|Annual Rent Return PA (Total Benefit)||$7,800||$9,360||$10,920|
|ROI (Return on Investment)||52%||46%||43%|
Of course, where you live, whether or not you have transport and other facilities close by are all factors that will affect what rent you can ask.
However, do not dismiss this because you think you do not qualify or do not think it is for you. Find out the facts for yourself.