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Granny flat? Consider this…

When they look at the data, experts see potential for many of our houses to support granny flats, bringing in extra income and boosting housing supply.

But how easy is it to have a tenanted granny flat in your backyard? While it seems an excellent idea, there are many aspects to consider.

If someone is to live in the building, it will at least need plumbing, power, a functional kitchen and a bathroom. Your local council will have planning regulations that must be adhered to – and these can differ greatly from one jurisdiction to the next. Then again, some state governments have recently made it easier to avoid going through a lengthy approval process, so make sure you do your research before committing.

Regulations might pertain to such issues as:

– the size of your block and the secondary dwelling, as well as the distance from trees and other structures;
– direct access to the flat from the street;
– use of a registered builder, or contractors for plumbing and power.

Setting a budget for the build is crucial. As a ballpark figure, according to backyardgrannies, it can cost anywhere from $140,000 to $250,000 to build a granny flat in NSW.

Whether you plan to build it yourself or have contractors do it, speak with your financial advisor to weigh up costs and benefits over the short and long terms.

Will you buy a kit home or build from scratch? The topography of the land and ease of access might have an impact on that choice.

Then, there are questions concerning access to and payment of electricity, internet, water as well as use and care of the yard and driveway. Some of these issues will be less important if the tenant is family, but they do need to be considered.

How will you deal with the issue of car parking? If your tenant has a car, would you extend the driveway to accommodate another vehicle, or stipulate street parking?

Quite a few websites offer advice, plans, and services, together with stories of trials, problems and successes building granny flats, so enjoy researching those as part of your decision-making.

Whether you build your granny flat to add value to your property, generate income or to accommodate parents or adult children while giving them their own space, make sure you avoid future angst by planning all aspects thoroughly before beginning the build.

About Adam Nobel

CEO | Principal
M. Bus, Grad Dip Adv, B.Int Bus, LREA


0417 007 001

Adam is the founder and Principal of Hugo Alexander Property Group. With a previous career in advertising, 22 years experience in property investment, and 16 years in Brisbane real estate, he knows the market inside out to ensure his clients grow their wealth faster.

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