PEOPLE wanting to build a granny flat on their property face a hike of more than 25% in council infrastructure costs.
The rise in council costs is set to take place from March.
Real estate experts argue higher costs will have negative effects on the already fragile rental market in Logan.
A spokesperson for Logan City Council said the increase will mean that council will no longer absorb the development costs of secondary dwellings (granny flats).
“Changes to Logan City Council’s infrastructure charges are a response to the Queensland Government’s decision to allow all self-contained secondary dwellings to be separately rented,” the spokesperson said.
“Council calculates what it thinks is the appropriate charge based on the network usage for a development. Council had previously been discounting this figure – only asking for 75% – but now is levying the cost in full.
“The increase is so the cost of the development does not have to be absorbed by council and potentially passed on to ratepayers.”
Under these changes, there will be no real difference between a secondary dwelling (granny flat) and an auxiliary unit (dual occupancy), with all charges being the same.
Real Estate Institute of Queensland (REIQ) COO Dean Milton said the new fees will act as a deterrent for Logan property owners to bring secondary dwellings to the rental market.
“Logan’s vacancy rate is 0.7% which is still a far cry from what we consider healthy at 2.6%-3.5%,” he said.
“Our view is that introducing new fees acts as a deterrent for property owners to bring secondary dwellings to the rental market and is contrary to the intention of the amended regulations for granny flats.”
New charges won’t impact anybody who already has a granny flat.
“For people already with these developments on the ground, it makes no difference,” the council spokesperson said.
“It means property owners who want to establish a self-contained secondary dwelling after March 6 will incur extra charges.
“For people who want to build an extension with an ensuite to accommodate extra family members, there is no additional charge. The charge only applies if the extension is a self-contained dwelling.”
Mr Milton said local government needs to do better.
“Private investors are playing a really vital role, housing a significant proportion of the community, and there’s opportunity for government to do more to encourage and incentivise that,” he said.
