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NT granny flats now available for rent

NT granny flats now available for rent

by Stefanie Garber 0 comments

Changes to planning regulations in the Northern Territory will allow investors to lease out granny flats to non-related tenants.

Under the new legislation, owners of granny flats will be permitted to rent out their unit on the open market.

Previously, only dependents or family members were able to live in such properties.

Local buyer’s agent Tod Peterson from Peterson's Property Search said the changes were a golden opportunity, particularly given Darwin’s robust rental market.

“What we're going to see is people doing conversions to granny flats knowing they can get an income out of it,” he said.

As an example, he said a granny flat may only cost $100,000 to $120,000 to install, but bring in an additional rental income of $350 a week.

Darwin already has the highest rental yield of any city in the nation and these changes would boost these possible returns, Mr Peterson said.

According to RP Data, yields in the city are as high as 5.8 per cent for houses.

Mr Peterson said the changes were brought in to respond to a housing shortage in the territory.

“What we're seeing is a loosening up of all the rules and regulations to help with accommodation, which we've always had a huge problem with,” he said.

“It's a balancing act because rather than going down the road of creating new suburbs, which is incredibly expensive, it's a lot easier to focus on in-fill areas where you can do things like granny flats.”

NT granny flats now available for rent
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