Building a granny flat on the site of your existing house can be a great way to add value to your home. If you have an extensive yard which is not fully utilized, a granny flat is a value-adding option worthy of consideration for first time investors.
Can I build a granny flat?
While there are some constraints on building granny flats, the process is relatively straightforward and planning approval is streamlined and rapid. Granny flats can only be built on land that is zoned as residential, and they can only be built as a second and not a primary dwelling – this means you cannot build a granny flat on a vacant lot. However, if your block is 450 square meters or more, you can build a granny flat up to a maximum size of 60 square meters.
Construction method and building regulations
Granny flats can be built using traditional methods or modular designs. As they are relatively small the building process can be completed quickly, weather permitting. Although you may not need planning permission to build a granny flat, there are regulations regarding setbacks from boundaries and street frontage which you will need to consider during the planning process. You will also need to know the location of your underground services such as sewerage pipes and drainage sites.
How much will it cost?
The cost of a granny flat will depend on whether you decide to custom build, use a modular design or use a flat pack. You can either use a building company or build your own granny flat. If you decide to do the build yourself, remember that you will need licensed tradesmen to install electricity and plumbing and to connect to the sewerage system.
Can I rent out my granny flat?
Regulations concerning renting granny flats vary between states and even districts. In some areas, a granny flat can only be occupied by a family member, but in others, granny flats can be rented to anyone. A granny flat could also be used as an Airbnb which gives you the flexibility to keep it vacant for visits from family or friends if you choose to do so. Regardless of whether you decide to rent your granny flat or keep it for family use, it will add significantly to the resale value of your property. If you decide to rent your granny flat out, it could generate a significant income which will help offset your mortgage.