Is the ACT housing crisis solution in your own backyard?
Granny flats in the nation’s capital are offering a better return than any ASX-listed company, according to one local operator.
Frank Walmsley, a co-director of Canberra Granny Flat Builders, believes the solution to the Canberran housing crisis can be found in home owners’ own backyards.
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He argues that “world-class secondary homes have the potential to overhaul Canberra’s private market”.
“We’ve got 0.5 per cent vacancy rates across Canberra, 5,000 people on the ACT government waiting list, a median rent of just under $800 per week, and we’ve got a lack of government capital to be able to fix the shocking housing crisis,” he laid out.
“And yet we’ve got people with private capital that want to invest.”
He believes “secondary dwellings are the perfect solution to dig out of the housing crisis that we’re in, and the only way to do it effectively without adding to the urban sprawl is to infill within our urban community”.
Especially since “secondary residences offer approximately a 10 per cent return plus depreciation, which is a better return than any ASX listed 100 company,” Mr Walmsley stated.
He pointed out that the average cost of a double-glazed, two-bedroom, one-bathroom secondary dwelling is $250,000.
With an average rental return of $500 per week on offer, Mr Walmsley said, “it’s a more affordable option for tenants and a sound, long-term investment for home owners”.
According to SQM Research, Canberra is the most expensive Australian capital city to rent in. Median weekly rents are currently sitting at $785 for houses and $555 for units.
“Private landlords are the primary solution to our housing crisis — the people prepared to invest in building housing for their fellow Australians,” Mr Walmsley expressed.
He also pointed out that granny flats will be required to meet the Nationwide House Energy Rating Scheme, which requires a minimum seven-star energy efficiency rating from 23 October 2023.
