Investors in Perth now have the chance to purchase property and build granny flats out the back. Yes granny flats have already been approved in some suburbs for those with relatives. but now the state government has made things much easier for investors. Planning Minister John Day says some changes have occurred in what’s known as the R-code… and that includes allowing anyone to lease a granny flat. Now, some homeowners in Perth might be thinking it doesn’t affect them – but what this means is they could potentially become investors by simply building a granny flat in their back yard and generating some cash flow. Lot sizes for single homes have also been reduced in the R-code, allowing some investors to possibly subdivide.
In other news – Sydney property prices seem to be bouncing back. Australian Property Monitors says properties in Sydney ranging from $500,000 to $1.5 million could rise by as much as 10 per cent in 2013. Dr Andrew Wilson says low interest rates and increasing buyer confidence are the two key drivers. He also expects property prices to rise between five and seven per cent in 2014. Of course, there’s no guarantee this will happen.. but it seems the Sydney market is certainly picking up at the moment and is possibly a good area to buy in.. with vacancy rates really low. Auction clearance rates are now also around 78 per cent, which is a massive increase and a positive sign for the market.
Finally – the Real Estate Institute of New South Wales isn’t happy about a fire levy. They’re saying a proposed fire levy to fund fire and emergency services will be an unnecessary burden for millions of property owners in NSW. President Christian Payne says another tax on property will hurt investment decisions as well as renters and landlords. The levy cost would depend on each individual house.. so for example, a house with land value of about $280,000 would need to pay $300.