Cessnock granny flats continue to be popular choice for property investors
We often talk about the great return on investment granny flats can provide and we have found that Cessnock is continuing to be a location of choice for property investors. This is particularly true for those Sydney property investors that are looking to invest somewhere more affordable than Sydney, but still close by.
During the five years we have been building granny flats, the Backyard Grannys team have found that Cessnock has been a popular location within the Hunter region, because savvy investors understand the benefits of the amenities it possesses, including schools and shops, as well as its proximity to the Hunter Valley vineyards. Other popular areas for granny flats are: Kurri Kurri, Weston, Abermain and Bellbird and not surprisingly Hunter Valley granny flats are also popular.
Cessnock has comparable affordable pricing (in relation to other Newcastle and Hunter suburbs), so it is providing to be quite a boom location. Sydney property investors tend to have higher equity in their existing Sydney property portfolio and therefore are able to enjoy great yields from building a granny flat on the land of their Cessnock property investment.
The total return on investment of a property with a primary dwelling and a granny flat tends to be higher, due to the inexpensive prices of the primary dwellings and the steady property growth the region has seen. Figures stated in The Real Estate Conversation found that over the last 15 years, property markets “… within (the) Hunter Valley actually outperformed all of Greater-Sydney’s 43 LGAs and 29 of Greater-Melbourne’s 31 LGA’s. Cessnock … was the Region’s best performed market.”
The article goes on to explore the virtues of the underrated Cessnock saying that “…the rich agricultural land, plentiful water supply, and rolling hills creates the perfect cocktail for wineries, tourism, and agriculture. Cessnock (winery country) has a median house price circa $300,000 and yields of 5% plus.” And we should highlight that those types of yields are without a granny flat on the property, which frequently increases yields to double figures.
The local newspaper, The Cessnock Advertiser, ran a story ‘Granny flats – turning backyards into gold’ stating that “(granny flats) can be great investments, with the rent earned as a proportion of the cost of the flat usually higher than for an investment unit.” This is something we have seen first-hand, time and time again, with our Cessnock granny flat clients.
If you’d like to know more about granny flats as a property investment, please call us on 49472800 or contact us.