Raine & Horne had expressed its support in the development of granny flats in order to address the pressing housing crisis being felt in Australia.
“In a climate where Australia grapples with housing and rental shortages and real estate affordability, these modest dwellings can be a viable and timely solution,” said Angus Raine (pictured), the executive chairman of Raine & Horne.
Recently, several properties across the country were found to be suitable for the development of granny flats, with a report from CoreLogic stating that there were around 655,000 potential granny flats sites throughout Australia.
“There is a narrow window of opportunity to discover enduring answers, particularly when we have a clear solution right before us in the form of granny flats,” said Raine.
Raine said that aside from addressing the housing crisis, these granny flats can also be profitable for homeowners.
“They can also serve as an extra source of income for cash-strapped homeowners who are wrestling with the multiple challenges posed by rising interest rates and the cost-of-living crisis, driven by escalating petrol and electricity prices,” said Raine.
In order to address the financial feasibility of the proposal, Raine suggested that subsidies could be given to homeowners in order to entice them into adding granny flats in their properties. Governments could make it so that income from granny flats can be tax-exempt for five to 10 years.
Raine also stressed that there should be a streamlined bureaucratic processes and regulations about what should constitute a fully contained granny flat.
“In certain regions, there may be restrictions on approving kitchens within granny flats, forcing tenants to seek alternative cooking arrangements, thereby compromising these living spaces,” he sai.
Raine also suggested consulting with financial specialists who have experience with financing granny flats as they can assist with the financing processes in line with a granny flat such as refinancing a home loan, accessing savings, and utilising money in mortgage offset accounts.
The executive chairman emphasized that as the housing crisis needed to be urgently addressed, granny flats not only provided an opportunity for investments but also a practical and timely solution.
“By adopting prefabricated building solutions, it’s possible to significantly expedite the construction process of granny flats, potentially reducing building times significantly,” he said.
What do you think about the development of granny flats as a solution to housing shortages? Let us know your thoughts on the comments down below.
