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How Much Does It Cost To Build The Cheapest Granny Flat?

granny flat

Many of us think to extend our existing homes or flats. While this extension is out of the budget for many, it invites lots of work too. The addition of a simple granny flat can be helpful for you. A granny flat is a self-contained living area. It is usually located on the grounds of the existing home. It is termed as an additional dwelling unit because you can connect it to your current flat or separate it. What you can find in any modern granny flat is a living area, kitchen, and bathroom. It is ideal for one or two people. Whether you’re looking for a modern yet tiny place or want to extend your flat, granny flat never lets you down. Let us have a look at the best advantages of having a granny flat.

Advantages of having a Granny Flat

Granny flat got its name as these units are mostly used for elderly parents of the home. They get their place with full peace and can enjoy the joy of staying with their kids too. If you’re having such a requirement, granny flats are ideal for ensuring the best privacy with closeness to your family.

Secondly, during pandemic times, many professionals have switched to work from home. Granny flat at your location can be an ideal meeting point for your clients. You can work from your granny flat without disturbing your family or putting them at risk.

Thirdly, granny flats are an ideal replacement for the extension of flats. Extension invites a bundle of expenses while granny flats are built easily and require the least budgets.

Granny Flat- How Much Does It Cost?

After having a look at its advantages, if you’re interested in building a granny flat, let us help you with its cost. To build the cheapest granny flats, it is essential that you must consider the following details:

  • Size of the granny flat: You have to decide on the space requirements of your granny flat. It starts from 36 meters square and goes up to the client’s requirements and budget.
  • Purpose of the granny flat: The purpose of the granny flat helps in its attached or separate construction from the existing flat.
  • Types of granny flat: You can choose a single storey or double storey granny flat based on your needs.
  • Other requirements in the granny flat: The helpful services like easy exits, ramps, etc for the elderly invite additional costs.

Cost of the cheapest granny flat

The cost of the minimum one-bedroom size granny flat starts from 80,000 Australian dollars, and the same for two bedrooms starts from 110,000 Australian dollars. It depends entirely on the size, number of bedrooms, additional services in the granny flat, and the number of storeys.


Granny flats are not only for grannies but a modern piece of infrastructure at your place. You can enjoy the best of the granny flat by building it at minimalist cost and maximum comfort. It is possible to make it in your desired budget and style if you consider all cost factors and plan accordingly.

Things You Need to Know Before Building A Granny Flat

There are many benefits of building a granny flat on your property. It can help create safe and secure lodging for your family members or relative, increase your property’s value, or generate rental income. While it may seem a good decision to construct the building on your property, you should know many things about it.

1. Council Approval

Your location and living situation will affect what the council will require approval. It is recommended to visit your local council to check the eligibility requirements.

  • Get a development application
  • Check all the limitations and governing policies that need to be complied with
  • It can take 10 days to 8 weeks for your application to be approved

2. Size Considerations

There are certain minimum land size requirements for Granny flats. Even if you seem to have a large enough property, you should know what the local regulations say about the minimum required size. The minimum required size of the property in some states and territories is 450 sq.m. In different states, the maximum allowed building floor area ranges from 50 sq.m. to 80 sq.m.

3. Financing Your Granny Flat

If your home is still mortgaged, you will have to apply for a home loan for the addition. Your home’s equity can help in your loan application, it will still be required to demonstrate your eligibility for repayment.

  • Your home will have to be re-valued
  • Prepare your house and floor plans for appraisal
  • Pursue with banks with specialized products for developing accessory dwelling units

It may be required to refinance your existing mortgage.

4. Design Your Flats

Hire the services of a project manager or architect to design your flat. There are companies that specialize in designing and building Granny flats. The design will be created by taking the following factors, requirements, and regulations into account:

  • Number of rooms
  • Layout
  • Size
  • Measurements
  • Structure

It is recommended to discuss your rough idea with the architect to simplify the design process.

5. Renting the Flat

It is recommended to consider the purpose of the unit before you begin the design process. Many homeowners will build these units to increase the value of their property and rent it to tenants. This makes these flats excellent investment options. It is also recommended to get a professional opinion about the potential rental income and whether the cash flow can help you cover the cost of construction.

6. Duration of Construction

It will also help you to know how long your granny flat is going to take to build. Many factors will come to play here, including:

  • Installation of prefabricated units
  • Building from the ground up
  • Installing a flat pack

On average, you should expect a flat to take anything from 12 to 15 weeks to complete.

Besides these things, you should also know who can live in the unit. Different states have different rules for who is allowed to live in these buildings. For example, some states and territories allow only dependent persons or immediate family to live there. Once that person leaves or passes away, you may have to remove the building. If you are exploring rental opportunities, make sure to check your state’s laws whether it is allowed or not.

Things to Consider Before You Build a Granny Flat


Are you in search of an option to generate income from a property or provide accommodation to elderly or adult children in the family? Hopefully, you aren’t thinking of building a new house or renting one when rents and housing construction costs are on the rise. Building a granny flat is an attractive alternative. We at 5 Star Granny Flats are experts in this field and provide start-to-end granny flat design and build solutions. Here are some things you should consider before starting on the construction.

Detached Or Attached Granny Flat?

You can think of a freestanding granny flat or even add it as an extension to your existing house. Your preference is dependent on the extra space available in the present lot as well as the structure of your current home.

When you have a freestanding granny flat, it is a separate structure with a separate entrance and disconnected from the main house. Its main advantages are privacy, and an opportunity to rent it out as separate premises. However, it does not allow extension of the indoor areas of your house.

An attached granny flat is an annex to the existing house with a linked door. When you open the door, you add space to your house with an additional bedroom/en suite, etc.  Alternatively, you can use it to serve various purposes like a guest, children’s play/hobby or study room. If you want to rent it out, close the linking door, and it becomes a separate living space. 

Check Your local Council’s Rules and Regulations

Always keep the requirements of authorities in view. Find out dos and don’ts with the local Council. It is necessary to understand all the rules and regulations, changes, and modifications. These mainly revolve around health and safety or taxable income derived from the property. 

For example, if your property is under a single title, you are entitled to only one meter. If you decide to rent out the granny flat, you will receive all utility bills like electricity, water, internet, etc. in your name and would have to pay them.

Get Expert Financial Advice

Any property matter and financial aspect related to it go hand-in-hand. Try to know the estimate of the present value of your property. For example, if your budget for the addition of a granny flat is $100000, your property value will increase to that extent. Do you think such addition is worth the money and effort? In the short run, it may not, but if you start renting it out, you are adding to your regular income flow. It may suddenly look like a profitable earning proposition.

In the longer run, the value of the entire property may become multi-fold. A regular addition to your income is liable to be taxed. You need to understand and get clarification about these financial and taxation matters from your accountant and keep the local Council in the loop to ensure that your dealings are correct. 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.


Factors To Take Into Account While Constructing a Granny Flat

A granny flat is a small addition in the outdoor space of an existing property. Designed as a self-contained structure to accommodate one or two people, it provides independence and privacy. Some owners prefer to build it as an extension of the family home while some others prefer it as an independent structure.

Aspects To Consider Before Building A Granny Flat

We at 5 Star Granny Flats are one of the most sought-after granny flats’ builders. Our company offers excellent granny flat design, and we customize our services to suit our clients’ requirements.

As an addition to the existing property, granny flats are cheaper to build. However, the actual building cost depends upon several factors that builders consider. Look at these factors.

1. Standard Or Customised Flat

Depending on individual preferences, granny flats builders offer both standard and customized designs. Prefabricated kits available for easy installation of one or two bed-room flats are budget-friendly and make the granny flat building process quick. But custom-designed granny flats are popular because they give the homeowner the option to include the features they want; however, they are a little more expensive to build.

2. A Small Or A Big Flat?

People build granny flats depending on the availability of space on their property. They can construct three or four bedroom flats on a bigger property. It means that such a flat would require more material and labour to build and will be costlier than a standard small one.

3. Pre-Construction Work

The cost of building a granny flat increases if some preparatory work like earthwork is necessary before the actual building or installation work starts. In addition to excavation, some obstructions like trees, large stones need clearing, and the work adds to the cost. That is why granny flats builders inspect the area carefully where site clearance work is involved.

4. Requirements For Constructing Granny Flats

You need to understand the rules and regulations of building a granny flat before you hire a builder. While small differences in regulation from one state to another may exist, these are the general guidelines:

  • The minimum area of the property – 450m2
  • Zoning of property as residential
  • A minimum boundary of 3m at the rear and 0.9m from the side for any property
  • A maximum external area of 60m2 for a property

The Parameters of floor space requirement as follows:

  • 330m2 for 450 – 600m2 area
  • 380m2 for 600 – 900m2 area
  • 430m2 for 900m2 or more area

When you think of making some major changes to your home, building a granny flat is an attractive proposition to create an independent and private space.  If you are not inclined to subdivide the large space you own, building a granny flat at a small investment is advantageous. It creates an additional source of income and gives you a great space that you and your family can use as required.

For more information on our granny flat builders’ 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.



The Differences Between Apartments and Granny Flats-Which One Is the Better Option?

Today, most states experience an increasing demand for granny flats. The relaxation and modifications in rules by some states and local governments have contributed to changing the face of granny flats. We at 5 Star Granny Flats have seen that people want their granny flats to have comfortable features and a more attractive look. However, there are still states and local councils that do not permit granny flat renting to other than family members.

Differences Between A Granny Flat And An Apartment

Let us understand the fundamental difference between a granny flat and an apartment. A granny flat is a self-contained place, mostly detached from the main building on the property. An apartment too is self-contained but is always part of a building.

One or two people can occupy a granny flat because it is essentially a separate small living place, generally built behind the bigger house. If the main house has a backyard, the granny flatshares it. Apartments and granny flats may not differ from each other in terms of the available space, but the state and local regulations decide the size of the granny flat.

Pros And Cons Of Living In A Granny Flat 

There are various pros and cons to living in granny flats, based on each individual’s needs.


  • A detached granny flat with the facility of an independent driveway and some yard space for parking is possible but not in case of an apartment
  • Designed with a focus on accessibility
  • The small size means less labour to keep it clean and neat
  • Lower on maintenance
  • If your family lives in the main house, quick help is available to fix any problem you face


  • Smaller space
  • With a smaller house, unlike large apartments, you need to learn to accommodate all your belongings in less storage space. That is inconvenient if you are used to living in a large house
  • While internal accessibility is an advantage, it could be inconvenient to negotiate a granny flat located in the backyard

Relocating To A Granny Flat

When you relocate in a granny flat, the two issues you may face are less space to live in and accessibility. The new skill that you need to learn is how to downsize and declutter your possessions, to make yourself feel comfortable in a much smaller place.

If you are moving into a granny flat on a property that your children own, you benefit from being able to live close to family. This is a great way of enjoying your independence yet being close enough to your kids and grandkids. We are custom granny flats builders that can design and build safe, practical, and very comfortable accommodation for the elderly, any other family members, or as a rental space.

For more information on our granny flat design 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.


Why the Design Phase Of Your Granny Flat Is So Important

A granny flat is a small addition to your home, but it can be aesthetic, and a value-add to your home. What makes your home attractive, functional, and comfortable to live in its design. The same concept applies to granny flats.

We at 5 Star Granny Flats are the reputed designers and granny flat builders. We know the importance of the preliminary design stage when your granny flat begins to take some shape. It is crucial to work with the builder at the granny flat design stage because:

1. The Design Matters

Always start a housing project for a small house or a granny flat with clear ideas about your requirements. A builder shows you the standard design to initiate your thinking process and gives form to your ideas about the granny flat. You have the option of either modifying it to suit your needs or custom design it to match your dream house.

2. You Can Analyse Whether Your Builder Is Professional

You never sign a contract at the preliminary stage. When a builder visits your site, they listen to your ideas, requirements, budget, etc. Based on this information, they put forth some ideas for your consideration and tell you what is feasible and what is not. They also provide a ballpark figure for building the granny flat. You must be alert to know whether they agree to everything you say or arent interested in listening to you. Professional granny flat builders will always be attentive and proactive in their approach.

3. Include the Installations and Features You Need and Prefer

It is necessary to mention all the major and minor features and installations that you want in the structure. Set down clearly what you do not want. At this stage, you discuss the room arrangements, measurements, and provision to make any changes later.  At this stage, you need to decide the position of the entrance to your house or the granny flat.

4. The Budget Aspect

While you are in dialogue with your granny flat builder, you learn more about the stages of the construction project. You can gauge how realistic your expectations are and whether they synchronize with your budget. Never forget to decide the timeline for the project and the consequences of missing it.

5. Get a Good Virtual Presentation of your New Home

Your builder can give you a presentation of the preliminary design of your new home. It provides a  visual idea about:

  • Budgeted costs
  • A view of your final house with rooms etc
  • Demarcation of places like the kitchen, pantry bathrooms, and more

Working with the builder at this stage helps them give you a fixed price quote and provide you a practical and customized solution. For more information on our granny flat builders’ 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.


Functional and Straightforward Granny Flat Designs

We at 5 Star Granny Flats offer custom granny flat designs and build solutions. Since every feature is built from scratch, you can be sure the final product will meet your needs. Here we look at some simple and functional granny flat designs to choose from:

Studio Design Granny Flat

This studio cabin option is popular because it is elegant and straightforward, and adds openness to your living area. While you build your granny flat, you can select a plan with or without an ensuite. This space can be used to house parents, kids, or you can use it as a private space, studio, or home office.

If you remodel your house to make more space in it, the mess and inconvenience are inevitable, regardless of how organized you are. You need to wait for approvals and have to deal with builders and payments for several services. On the other hand, building a granny flat is relatively simple. This structure is also ideal for creative people such as writers, artists, photographers, graphic designers who enjoy privacy and working in their own space.

As an affordable and preferred option, a home studio granny flat is excellent for people working from home. We can build it as a standalone structure or closer to your primary residence.

While your granny flat can be a place for your family members to work peacefully without any disruption, it offers some other benefits. Besides adding value to your property, you can convert it into accommodation or a place to rent out.

One or Two Bedroom Granny Flat Units

People looking for more privacy, space, and luxury prefer one or two-bedroom granny flats.  These granny flats have a separate living area. Both options have ensuites, are spacious, and provide more privacy compared to studio cabins.

You can utilize a two-bedroom granny flat in various ways. You have a spare room to entertain a guest or rent out your granny flat. It is ideal for young families and provides an avenue for weekly rental returns. The design fits the needs of an office combined with accommodation.

People used to live in spacious houses find moving into a granny flat somewhat disconcerting for valid reasons. They wonder how to accommodate a guest for an overnight stay or to find space for their books or other collections. People often perceive granny flats as small places. However, we can design two-bedroom granny flats that are not only spacious but comfortable and practical as well. You enjoy the benefits of living in a lovely house without the problems associated with maintaining a big one.

Granny Flat Benefits

  • A feeling of security as the family lives close by.
  • Lower maintenance
  • Fewer expenses of running a house
  • Free from the payment of retirement village fees

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.

Benefits of Granny Flats

Granny flats are attracting more and more investors, property owners, and renters in recent times. These structures may not seem a very stylish extension to your home. However, we at 5 Star Granny Flats know from experience that granny flats are becoming increasingly popular among investors and property owners alike. Let’s take a look at why this is the case:

1. Inexpensive to build

It is a legal requirement that granny flats be an attachment to the existing house or constructed on the same property, but not on another plot of land. They typically share the utilities and service connections of the main house structure. If built-in a garage or as a part of the basement, you save structural building costs too.

2. Home Office Space

You can use granny flats as an office space with rooms for staff, a small kitchen, and a conference room to meet clients. Working from home has some distinct advantages, like saving time on the commute, more time for the family, financial saving, etc.

3. Added Rental Income

Rental income generation is one of the main points that sees people favouring the concept of granny flats. If you have a large backyard to build a granny flat, you can add to your income flow by renting it out. The granny flat will also boost the resale value of your property. You can make your retirement period more comfortable by selling the property and live in a rental property with the additional income increasing your retirement savings.  

4. Accommodation for College-Going Kids

A granny flat becomes the perfect solution for accommodation for college-going adult children.  They may not always be able to afford to live independently due to the high cost of accommodation. Living in a granny flat on their parents’ property reduces the expenses of living away from home drastically and yet provides them the freedom they want.

5. Housing for The Elderly and Guests

Granny flats can serve many purposes. It can be used to provide living space to your aging parents or some other elderly members of your family and can care for them easily. You also have peace of mind that they are living close to you and can provide them the assistance they need in their old age.

You can accommodate occasional houseguests in a spacious separate place with a bedroom, living room, and kitchen and make their stay more enjoyable. It will be a pleasant surprise for them to live in a granny flat than a guest room in your house. Your kids can use a granny flat for their parties, as a study place or as a hobby place like a studio for painting or learning and enjoying music. As you can see, there are a number of ways in which you can benefit from getting a granny flat built. For more information on our granny flats, 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.


Things to Look for while Hiring a Granny Flat Builder


Although people love to take care of their parents or grandparents in their old age, it still might be a little inconvenient to live in the same house. Similar to how you want them to have their space and freedom, they want control over their own lives as well. However, see to it that you’re located at a short distance. This makes it easier to visit them when they’re ill or just need some company.

Buying a granny flat in Sydney is probably the perfect choice to solve the issue as it meets both your goals. However, you must hire experienced and professional granny flat builders to tackle the job. We at 5 Star Granny Flats offer clients customized solutions based on their specific requirements. 

Hiring a Professional Granny Flat Builder

Some things to look for while hiring a granny flat builder include:

  • Quality – Investing in a granny flat is a serious commitment, which makes it crucial that you hire a company that guarantees quality construction. See to it that you hire the services of a granny flat builder that has high standards for development but also makes sure that the best materials are used for construction.
  • Unique Designs – Well-established granny flat builders in Sydney will always incorporate modern design concepts and the latest construction trends. A reputable company will invest a considerable amount of time in designing the perfect granny flat that meets all your specific requirements.
  • Personalised Consultation – Knowledgeable professionals will first provide clients with information regarding the materials used, the cost, the timeframe, and the design and style implemented. To understand your preferences and to exceed your expectations, the professionals will work with you closely.
  • Fair pricing – A well-established company will always maintain reasonable costs without compromising on the quality of services provided. Clients will be supplied with transparent billing, and the pricing will be in line with the budget.

How We Work

Here are few of the essential aspects that expert granny flats in Sydney designers focus on:

1. Design Preference

The professional granny flat designers will ask you questions like:

  • What size of the granny flat you’re interested in, and what is your budget?
  • How many bathrooms do you want, and do you want to incorporate a disabled-friendly design?
  • Do you have any preferred materials for the doors, windows, floors, roofs, and sidings?
  • Would you need additional space for parking?
  • How many rooms do you require?

2. Structure

To ensure that the designs match your requirements, the builders will keep the blueprints of the ready designs.  Although they’re in the form of a floor plan, they should provide you with enough information on the overall idea of the flat. Here are a few options you can choose from:

  • One Room Granny Flat
  • Two Room Granny Flat
  • Three Room Granny Flat

Based on the budget, you can choose any structure that suits your needs. 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.


Different Stages Of a Granny Flat Construction Project

The popularity of granny flat structures is on the rise. We at 5 Star Granny Flats offer design and build services for customized granny flats. We adopt a very systematic work process and ensure 100% customer satisfaction. In most similar projects, there is a specific workflow or stages that are followed. Let us understand what planning and constructing a granny flat involves.

Construction Stages

  • As a starting point, a meeting is set up with the granny flat builder where. They will provide preliminary design drawings. 
  • Although you may want the building process to start immediately, the builder first finalizes the design and gets the necessary approvals from the concerned authorities.
  • The project passes through various stages.

1. Building Schedule

  • An experienced builder readies a building schedule by the time a preliminary design is in hand.
  • The purpose of scheduling is to procure building material, time the deliveries, ensure project progress, and complete it to hand over a granny flat on time.
  • All these steps precede the granting of a building permit.

2. Site Clearing and Preparation  

  • Site preparation includes removing unwanted trees, any other obstructions such as existing structures and keeping the site ready to start building a new structure.
  • The plot of land will be excavated, leveled, and plot boundaries chalked.
  • The site starts buzzing with several tradesmen undertaking different tasks.

3. Pouring the Foundation slab

  • At this foundation stage, termite treatment is an essential process after which the concrete slab is poured and allowed to cure.
  • Based on the design, you can visualize the outlines of rooms and other spaces.

4. Framework

  • In this stage the backbone of the granny flat structure will be started; this involves installing steel or wood frames.
  • At this stage, the frames are for the walls and the roof.
  • The visibility of the structure improves at this stage, and you can see the broad lines of rooms, windows, doors, etc.

5. The Lock-Up Stage

  • After fixing the frame, exterior work tradies begin their work like electrical installations and plumbing.
  • Some other tradies start fixing the roof, doors, and windows.
  • As the structural details fill, the granny flat starts taking concrete shape.
  • Now is the time for lock-up and a comprehensive inspection of the work done to date. All types of residual material are removed to clear the site, and the granny flat project gets ready for the next stage of internal and external work.

Some More Stages Of The Process Are:

  • Insulation for the structure.
  • External painting followed by termite treatment.
  • Installing interior features like kitchen, bathrooms, etc.
  • Laying flooring for all internal spaces
  • Painting and finishing touches on every aspect of the granny flat.   

Lastly, the builder clears the place, gives final finishing touches to ensure that everything is ship-shape and hands over the keys of the granny flat to you. Once the granny flat is ready, you can check it for workmanship and safety and it will be ready to move-in. 

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.