$2m property hiding housing crisis solution

The six-bedroom property on Mill Street in Carlton, which sold last month for $2.13 million, is actually a typical three-bedroom cottage dating back to the 1930s.

Behind the main residence are not one but two separate, self-contained dwellings – a two-bedroom Jeddah apartment and a one-bedroom studio, each with a bathroom and kitchenette.

“I’ve seen homes that are split upstairs and downstairs with a granny flat, but I’ve never seen a home that has a studio and a granny flat,” said sales agent Bill Tsonias of McGrath Sans Souci.

Mr. Tsounias said he expected the trend to become more popular.

“Granny flats are not very common for us but we are seeing them increasingly,” he added, noting that many are not for investors but are “purpose built” by parents to give their children a place to live.

“Our area is suitable for granny flats.”

The Mill Street listing describes the property as a “truly unique offering on a quiet street” that “offers a distinct lifestyle opportunity for multi-generational families and investors,” close to local schools, beaches and St George’s Hospital.

The seller bought the home in 2008 for $592,000, more than tripling his money in 16 years.

The additional $1.54 million over that period is equivalent to $96,000 per year, or 16 percent of the original price per year.

Property records show the owner filed a development application to add an annex in 2018, at an estimated construction cost of $40,000.

“She did a really good job,” Mr. Tsounias said.

“I got the nod. Well done, kudos to her.”

He added that the George River Council had no issues with the application.

“Not at all, which [makes it] “It’s strange that more people don’t do it,” he said.

The property is currently priced at $1,800 per week for the three units.

under the state of new south wales Planning lawsThe maximum living area of ​​a granny flat can be 60 square meters while a studio can be 35 square meters.

“The biggest difference between a granny flat and a studio is that a granny flat is designed to be a permanent secondary residence, while studios should be treated as an extra room in your primary home,” explains Sydney builder Granny Flat Solutions. Her website.

“Generally, as a studio is a non-habitable dwelling, it cannot be rented out. However, some councils may allow you to rent out your studio to someone who works from home, as long as they are not running a business, or to overnight guests in the same way as you might rent out a room in your own home. Regulations will vary depending on your local council, so it is best to ask for permission before doing this.”

The company notes that if you can’t decide between a studio or a granny flat, you can “build both.”

“If the granny flat and studio aren’t connected, you don’t have to choose between an apartment for granny and grandpa and a pool room to host friends and family — you can have both!” she says.

“You can build a separate house for your young children and provide a space to work from home. Or build a small apartment to rent out and create the hobby studio or home gym you’ve always wanted.”

Sydney is named the second largest city in the world. too expensive A study by American academics last month showed that Hong Kong’s property markets are lagging behind other markets.

the Demography International – Housing Affordability Sydney, Melbourne, Adelaide, Brisbane and Perth are all among the lowest 25% of cities in the world for affordability, according to a report by researchers at Chapman University in California.

The median home price in the capital reached a new record in June at $855,000 despite slowing monthly growth, according to PropTrack.

The average value in Sydney was $1.11 million, representing a 37.8 per cent increase since March 2020 and 6.4 per cent higher year-on-year.

It would take one typical high school graduate. 46 years To save a 20 per cent deposit on an average-sized home in Sydney and 18 per cent on a unit, according to analysis from comparison site Finder in May.

“Salaries can no longer afford houses in Sydney,” Freelancer CEO Matt Barry noted on X earlier. this year.

Real estate expert and auctioneer Tom Panos has previously lamented the fact that Sydney is now a city for the very wealthy.

“If you’re 20, it’s going to take you until you’re 60 to get a deposit on a house,” he told Mark Boris on the Yellow Brick Road podcast. “In the old days, the goal was to have your house paid off by then, not to save up to pay the deposit.”

Meanwhile, Australia’s rental crisis, which has seen vacancy rates hover around record lows of around 1 per cent as rents rise, showed signs of improvement in June for the fourth month in a row.

The national vacancy rate rose 0.09 percentage points to 1.42 per cent in June, according to PropTrack, led by Sydney where vacancies rose 0.2 percentage points to 1.68 per cent, the highest level in more than 18 months.

“Increased investor activity has supported high vacancy rates, which has contributed to an increase in the number of properties available for rent,” said Anne Flaherty, senior economist at PropTrack.

“Despite the recent slowdown in vacancy rates, the chronic undersupply of rental properties is likely to persist over the next few years. Development activity is lagging behind population growth, with the worst new housing shortages in Western Australia, Queensland and New South Wales.”

In December, New South Wales Premier Chris Minns announced controversial measures. Planning reforms To force the development of high-density housing along transport routes, angering some councils who said the changes would destroy local heritage.

Minnis government lightened This was a key component of a policy signed into law in May in an attempt to appease local councils demanding the abolition of land ownership in areas they occupy, despite warnings that Sydney has almost no affordable rental properties left.

NSW Productivity Commissioner Peter Achterstraat said last year that Sydney’s wealthiest suburbs You must become “Longer” and “Denseer” to Address Housing Crisis.

Frank Chong@news.com.au