Can You Sell a Granny Flat? // [Here is the Only Way to Do It]
Times tend to change, and as they do, this may end up with you no longer wanting or needing your granny flat. So, can you sell your granny flat?
This question is complicated to answer, as it all depends on what type of granny flat it is. If it is a:
Granny flat on your land, both attached or detached, these cannot be sold.
Granny flat that can be uninstalled from your land, such as a portable or modular granny flat, then these can be sold.
Today I will discuss when this is possible, plus where you can advertise them, and whether they are worth selling?!
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The easier your granny flat was to install. The easier it will be to sell and relocate.
Strict Council Rules About Subdivision
Every Council has the same strict rules that surround granny flats and subdivision. That is, to gain approval to build a granny flat on your property, amongst other things, the rules are that your land must be:
On the same title as your main home – not an independent lot in a strata plan, or community title scheme.
But subdivision means the land has been divided into separate lots, with each one registered with its’ own title, to its’ own individual owners. People generally tend to subdivide a block as it is easier to sell.
But a granny flat is a secondary dwelling – a smaller version of a house, that is built on the same block of land, and must be owned by the same person/s whose name is on the title for the land and the main home.
So, the granny flat must be registered with your local Council as a secondary dwelling on a primary property – and not a (separate) subdivided lot.
The Councils’ rules are that the main home and the granny flat must always stay on the same lot, with the same ownership title. Meaning that, once you build a granny flat, the property cannot be subdivided. (unless you have excess land with access). Every council is different, and allow varying land sizes to be subdivided, depending on their rules.
This also means that a granny flat and the main home cannot be sold separately, as this would mean splitting the title.
These types of granny flats are actually designed specifically so that they can be moved multiple times.
After all, some Councils’, such as those in Victoria, have regulations stating that your granny flat must be movable (at the time of this article being published). This means that they can be uninstalled and transported to a new location with little fuss, which makes them easy to sell.
So, if you are looking for a temporary structure, they are definitely budget options worth taking into consideration.
Can You On-Sell a Modular Granny Flat – Is it Possible?
People often mistake modular granny flats as being the same thing as portable granny flats – that is, that they are mobile.
But modular granny flats are massively different – just like a traditional granny flat, they are designed to be permanent, built on a foundation, and connected to services such as water and electricity.
The type of foundation that they have to be built on depends on your property – that is, your area, your soil type, and the engineers specifications. There are also different types of modular granny flats – they can come with either a concrete frame or a steel frame. This can also affect what is needed from your foundation.
But generally, with a modular granny flat, you can have piered concrete footings, rather than having to pour a concrete slab, .
So, in this case, does this mean that you can move your modular granny flat once it has been set-up on your property?
It will need to be deconstructed for transport (this will have to be done, bit by bit, until it is down to its’ original pieces).
It must be transported by a truck to their site, where it can then be reinstalled and will be ready for the new owners to move in.
The cost to relocate the modular varies depending on the granny flat, its’ size, how far the new site is, and what the access to the new site is like. But a rough estimate is somewhere between $10,000 to $20,000.
The time it takes also varies, but a rough guide is:
A few days to deconstruct the modular.
One – two days to transport it to the new location, and
Allow a couple of weeks to install, and connect to the services at the new property.
Where Could You Sell a Used Granny Flat?
A lot of companies are selling used granny flats, as it as becoming quite popular to buy a high-quality used granny flat instead of paying to build one from scratch.
Our list shows you companies nationwide that you can call, to see if they are interested in purchasing yours and on-selling it.
Or, if you would prefer to sell the granny flat yourself, other places you can advertise it are:
This is a debatable answer – from what I can gather, it seems to depend on what type of granny flat it is.
The price of modular granny flat starts at roughly:
$57,000 for a one bedroom, one bathroom.
$69,000 for a two-bedroom, one bathroom.
$87,000 for a two-bedroom, two bathrooms.
$99,000 for a three-bedroom, one bathroom.
But whilst the price of a modular granny flats is still cheaper than that of the traditional granny flat, this price can be very misleading. You must also take into account what you will have to pay for:
Site preparation – (concrete slab, footings, plumbing, electrical work. Etc…)
Transportation and crane costs – ($400 – $700 just for transportation in a metro area, let alone out of the city, or for the cost of the crane).
For example; while writing this post I found a one bedroom, one bathroom modular home currently being advertised at a “Buy it Now” price of $31,990. This means that more than $25,000+ has been lost by selling this granny flat, as this does not include Council Fees or the price for the advertisement.
Those who have purchased their granny flat for temporary use – basically, any type of portable structure, such as a shipping container, seem to have more luck.
So, this is a harder one to judge as to how much money these people have lost, or whether in fact some of them have gained money, especially if they have been paid rent by tenants in the granny flat over the years.
I suggest you consider your motivation – the reason you are selling. Perhaps you will find that it is not the perfect time, as you are not really committed to the sale. Or perhaps the current market is not ideal.
Try comparing the advantages and disadvantages of selling now or keeping the granny flat for a bit longer, by writing a list to decide if you are making the correct move.
Also, speak to trusted professionals and get their opinion.
The Councils’ rules state that a granny flat that is built on your land cannot be put on a separate ownership title. This means that they cannot be sold separately. Portable granny flats, on the other hand, are a great option for temporary accommodation needs, where you are likely to relocate multiple times.
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