The property opportunity in your back garden

There is space for more than half a million granny flats across the suburbs, so is the back garden the secret to solving the housing crisis?

There are enough ‘spots’ in the backyards of Australia to represent around 20 per cent of the housing stock in major cities. Picture: Susan Murchie

With a rental shortage across the major cities, new research has revealed there are more than 600,000 spots across urban Australia where owners could install a residential unit such as a ‘granny flat’.

At a stroke, such a change would change the dynamics of the market – not to mention the household income of many Australians struggling to come to terms with the reality of the current market.

A report from the Archistar group in conjunction with CoreLogic, suggests there are enough ‘spots’ in the backyards of Australia to represent around 20 per cent of the housing stock in major cities.

Better still, such sites are often in the best located streets in the major cities.

With a forecast undersupply of more than 100,000 dwellings over the next five years, it’s time to reconsider what we used to call the ‘granny flat’ – perhaps the more neutral tag of ‘Independent Living Unit’ might spark a wider conversation?

In Victoria – the most tightly regulated state for investment property – there is, believe it or not, an incentive where back garden units do not need to seek planning permission.

Who is the guest?

Tim Lawless of CoreLogic

Why him?

CoreLogic has co-produced a report on the opportunity presented by vacant space across Australian neighbourhoods

What are the topics?

• The powerful potential of the ‘granny flat’

• Rules and regulations around Independent Living Units

• Why property owners are quitting Victoria

• Capital gains tax and the family home

Question of the week

Regular listener Luke asks: A couple owns a family home. The couple purchase a new family home to live in for 12-18 months and then after this time, they sell this home. The original family home was left vacant during the 12-18 month time and then moved

back into by the family and then sold five years later.

The question is – where would capital gains tax be paid?

Questions always welcome to the podcast, via [e-mail]