Understanding the Cost of a Granny Flat

Understanding the Cost of a Granny Flat

Have you considered adding a granny flat to your property? It can be a cost-effective way to reach your family’s goals for more space or add an income stream.

Of course, the first big question to answer is how much it’s going to cost. The following table offers a rough breakdown of what you can expect to pay. Then, we’ll go into more detail about the subject.

Granny Flat Style
One Bedroom $150,000 - $200,000
Two Bedroom $250,000 - $300,000
Three Bedroom $300,000 - $350,000
Two Storey $280,000 - $320,000

What Is a Granny Flat?
A granny flat is an extra little house you can build on your property. It is designed to allow for independent living so a bathroom, kitchen, private access, and even a bit of outdoor space are included.

The concept originated with folks building extra spaces for ageing loved ones. There comes a time when some older folks shouldn’t live alone anymore but may not need (or can’t afford) care at a facility.

A little granny flat on a family member’s property is a great solution to the problem.

Now, homeowners use granny flats for a variety of uses. With popular rental sites like Airbnb, they even turn them into an income stream!

What Does It Cost to Build a Granny Flat?
Granny flat solutions come in three ways. You can buy a flat pack, kit, or have your granny flat custom-built.

A flat pack comes with all the parts, you just have to put them together. A kit comes with the parts fully assembled, allowing you to build it faster.

A custom-built granny flat gives you the freedom to choose window and door sizes, ceiling height, custom-design the layout, etc.

Sizes and Price Ranges
A 1-bedroom costs between $150,000 and $200,000. A small option will be about 35 m2. The maximum size for all granny flats in NSW is 60m2.

A 2-bedroom costs between $250,000 and $300,000. Keep in mind that you may find offers for around $200,000 but there are usually hidden costs.

A 3-bedroom costs between $300,000 and $350,000. This type is popular among investors since you can build a 3-bedroom house at a reduced cost. It’s small, though. Remember the maximum size for a granny flat is 60m2.

You can also build a 2-storey flat for between $280,000 and $320,000. This is a great option for fitting the granny flat into a smaller yard. Combined floor space between upstairs and down cannot exceed 60 m2.

Do I need council approval to build a granny flat?
Yes, different local councils have different requirements for building granny flats. Your local council will want to weigh in on the decision and ensure that your flat is built correctly.

Will a granny flat increase the value of my home?
Absolutely! Buyers love the option of extra useable space or an extra income stream and will be willing to pay for it.

Research conducted by CoreLogic indicates that a granny flat can boost property value by as much as 30%!

A granny flat is a great option for homeowners looking to offer independent living to a family member or just extra floor space. Just be sure to shop around to get the best deal on quality construction!