Improve The Value Of Your Residential Property With A Quality Granny Flat, And Combat The High Costs Of Moving Or Renovating.
What is Return on Investment or ROI?
When you compare one investment to another in investment circles, it is referred to as Return on Investment or ROI.
The ROI is a percentage figure and is simply the return over a 12-month period when it is compared to the purchase price or the original amount you invested.
Imagine for a minute you invested $10,000 out of your own pocket to erect a Granny Flat, and after 12 months your $10,000 original investment generated $1,000 NET profit.
This would mean your ROI would be 10% PA. This simple formula is shown below:
|
Total Benefit – Cost |
$11,000 – $10,000 = 0.1 or 10% ROI |
|
Cost |
$10,000 |
You can now see how investing in a Granny Flat to generate a rental income can be a much safer and profitable investment option with very high ROI.
The TOTAL BENEFIT is the total amount of rental income over 12 months. The COST would be total amount of loan repayments paid in that same year.
On the table below is the ROI on one of our Granny Flats:
|
Here’s An Example Of Potential Rentals Return From One Of Our Granny Flats |
|
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% |
| * This investment outlay includes building, transport & installation and may differ in each individual situation depending on where your property is located and access to the property. The above are example figures for education purposes only. It assumes you pay for the full investment amount out of your own funds. |
If at its worst, a return on investment of 43% is pretty good when you consider that the return on investment on a $300,000 home rented for $400 per week ($20,800 PA) is just 6.9%.
Now, what would you rather have, a 6.9% return on investment or a 43% return on investment?
With more and more homeowners deciding to stay put instead of moving house due to the cost of selling, relocating and upsizing, many are installing our Granny Flats and Portable Buildings on their residential and acreage home-sites.
The reason for this is that they deliver an affordable solution to acquire extra living space when you do not have enough room in the main house, or when you need accommodation for guests or for mature and elderly relations who wish to live close to their family.
Erecting a Granny Flat on your property will save you time and money, and will add value to your property in more ways than one so you can acquire a higher sale price when that time comes.
Want to generate $150 – $250 in rental income, start an investment portfolio and increase the value of your property with a Granny Flat rental?
Installing and renting out a portable building or Granny Flat is proving more and more popular with homeowners and property investors, and for good reason!
You get to generate extra rental income for minimal effort, you get to increase the value of your property, you can make use of a larger piece of land if you have a larger property, and there should also be some tax incentives in there for you as well.
They’re a cost-effective living arrangement and solution to a massive rental shortage, and a great strategy to generate extra income and value to your home or another rental property you have.
Furthermore, our Granny Flats and portable accommodation hold their value, which is why they are a low-risk investment strategy that is proven to deliver a High Returns on Investment, or (ROI).