Skip to main content

call OUR team today to discuss your unique requirements

Essential Things You Need to Know If You Are Building a Granny Flat

Granny flats are rising in popularity as a charming little home added on properties not only in Sydney but also across Australia. People view it as a rewarding investment. We at 5 Star Granny Flats suggest that you know some essential aspects of granny flats before you decide to build one.

What Is A Granny Flat?

You can build a granny flat on your property as an addition to your existing house or primary residence, and own both structures. You can use this small self-contained flat as a dwelling for elderly family members, an additional place for kids, or other members of the family. It can be a source of extra income if you rent it out.

Things To Know About Granny Flat Construction

  • You can construct a granny flat only on a residential property, and the size of the block must be at least 450sqm to build it.
  • No commercial, community titled, or divided property, or unoccupied land, can be used to construct a granny flat.
  • The maximum size of a granny flat can be 60 sqm.
  • It is a self-contained structure. It means that it has a separate entrance, living space, kitchen, bathroom as an also outdoor area.
  • Sharing of patios, outdoors, pools and barbeques is permitted.
  • You can build a granny flat as an attached or detached structure of the main house or even convert a garage depending on the State Council permits.

Granny Flat Cost

Look at the reasons why granny flats are gaining popularity as a secondary dwelling in the backyard for many Australians:

  • While it is an affordable accommodation, it offers depreciation benefits as well.
  • It is quick to build in a short period of 8-12 weeks in a manageable budget of about $100,000.
  • There are a lot of companies around that offer customised granny flat building services at competitive prices. You can strike a good deal by comparing estimates from a few licensed and reputed construction companies. 
  • By using modern designs that skilfully use light colours, mirrors, and natural light, you can give a spacious look to your granny flat.

Granny Flat Financing

Various options to finance a granny flat are available in the market. You can take a construction loan, refinance your existing home loan, or use the equity in your home. It is better to consult a financial expert to guide you in the matter to get a beneficial financing deal for your granny flat.

Renting Out The Granny Flat

Remember that your future tenants will share some common areas with you because your granny flat is a part of the same residential block. So carefully opt for a design that minimises the privacy issues for you as well as others. You can earn a rental income of over $300 a week or a rental yield of over 7% from a granny flat, depending upon the location of your property. 

For more information on our granny flat builder services, you can get in touch with us at 5 Star Granny Flats today! Just give us a call on 1300 843 921 or fill in this contact us form. You can also use this form to get a quick online quote.




This error message is only visible to WordPress admins

Error: API requests are being delayed. New posts will not be retrieved.

There may be an issue with the Instagram access token that you are using. Your server might also be unable to connect to Instagram at this time.

Error: API requests are being delayed for this account. New posts will not be retrieved.

There may be an issue with the Instagram Access Token that you are using. Your server might also be unable to connect to Instagram at this time.

Error: No posts found.

Make sure this account has posts available on