Granny flats are smart setups that allow you to optimize and monetize idle space in your backyard. These private dwelling spaces provide an excellent way to earn extra income.
However, like any other construction project, building a flat of granny comes with various costs and requirements. This guide breaks down the prices you’ll likely incur to help you budget for your Flat.
To start, here’s a summary of estimates for granny flats.
|Flat style||Estimated Price Range|
|Three Bedroom granny flat||$350,000 – $300,000|
|Two Bedroom flat||$300,000 – $250,000|
|One Bedroom||$200,000 – $150,000|
|Two Storeys||$320,000 – $280,000|
What Is The Meaning Of Granny Flat?
The flat of granny is a self-reliant living space located on the main property. The flat is independent but can be attached or separate from the primary dwelling.
These units offer fantastic opportunities as long-term living solutions for family members and lucrative rental options.
What Does It Cost to Build a Flat of Granny?
The estimated cost of a flat of granny depends on your goal for the project. You can buy a flat-pack granny flat or custom-build your unit.
Generally, a one-bedroom granny flat costs about $150,000. If you want an extra bedroom, the additional cost will be about $100,000.
Granny Flats: Custom-built Vs. Kits Vs. Flat Packs
You can construct the entire granny flat from scratch or buy a prefabricated kit to make work easier. Custom-made flats of granny allow more design flexibility since you get what you want.
Kit or flat-pack granny flats are pre-made at a factory and dropped off at your home. The package contains all the essential components of the granny house, so it only requires assembly like a giant puzzle.
Sizes And Price Ranges
▪ 1 Bedroom ($150,000 to $200,000)
A one-bedroom granny is an excellent option if your goal is a holiday rental, guest house or home for older or physically challenged loved ones.
Generally, a one-bedroom granny flat costs between $150,000 and $200,000.
▪ 2 Bedrooms ($250,000 to $300,000)
A two-bedroom granny flat allows more versatility. The manageable size can fit various applications and leave more storage and living space to work with.
The average cost of a two-bedroom granny flat is between $250,000 and $300,000.
▪ 3 Bedrooms ($300,000 to $350,000)
A three-bedroom granny flat has adequate space for a family of six. It’s ideal for student accommodation if your home is near an institution.
Renting out such a sleeping capacity can earn decent returns. It will also boost your property’s value at an initial investment of between $300,000 and $350,000.
▪ 2-storey ($280,000 to $320,000)
Two-storey granny flats are ideal for young families looking to grow. The extra space also suits older kids looking to be independent.
Consider this layout if you have a larger backyard and rear lane access. The initial investment is between $280,000 and $320,000.
Other Costs To Consider – Inclusions + Exclusions
a flat of granny comes with additional expenses that increase the total cost, such as:
- Council or private certifier
- Surveyors report
- Labour, including professional builders, electricians and plumbers
- Design planning
- Professional advice and diagrams
- Building materials
Do I Need Council Approval to Build A Flat Of Granny?
Most local councils permit building granny flats on your property. However, you must confirm with your local policies and determine if you require approval.
You’ll need to provide elaborate drawings of your flat and possible council fees of up to $20,000. The granny flat must meet Australian building standards and have a private entrance, bathroom and kitchen access.
Will A Flat Of Granny Increase The Value Of My Home?
Building a modern granny flat in Australia is an excellent idea. The housing market is always in demand with the ever-growing population.
Every extra square meter is valuable as it creates extra income. a flat of granny is easy to set up but has an incredible ROI (Return on Investment).
Granny flats are a new, exciting trend across Australia. These units provide innovative solutions that bring in extra income or accommodate family members.
Granny flats are available in various styles and designs to accommodate your particular taste. It’s high time to start browsing granny flat designs.