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We’re Obsessed with Granny Flats
(And You Might Be Too)
Who We Are
We’re property investors who’ve seen firsthand how granny flats can unlock serious value — from dual income strategies to multigenerational living. But getting started can feel overwhelming. That’s why we built CanIGrannyFlat.com.au: to make the process faster, clearer, and more accessible for everyday Australians.
Council Rules Made Simple
Here’s what most people miss.
Across many councils in NSW and Queensland (we are launching NSW/Qld initially and finalising other State certifiers soon), granny flats up to around 70 m² can often be approved without a full DA.
Instead, approvals are frequently managed by a private certifier and engineer using secondary dwelling rules — a process that is typically faster, cheaper, and far less risky than lodging a DA with council.
Read that again🗝️
This is where savvy investors and builders gain an edge AND also homeowners building for extended family use (see tip below)
Want to know how to use this pathway properly? Keep reading.
Smarter Builds, Bigger Returns
Traditional granny flat builds typically start at $200,000+, and that’s before upgrades. For us, that simply wasn’t a realistic option. So we took a different path.
We chose factory‑built granny flats that:
The Result
A compliant, permanent, income‑producing granny flat—without the cost, delays, and uncertainty of a traditional build. Add a deck, fence it off, and it’s ready to generate income — or comfortably house your extended family. Refer to Project Gallery for install images.
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The cost doesn’t start with $200k.And the best part?
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In fact, done properly, it doesn’t even start with a “1”.
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Yet (in our experience) the market still values it from $200k+.
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This is on top of the primary residence valuation
Understanding Granny Flat Investment Returns
This is simply our experience, and we know everyone’s situation is different — so please make sure you do your own research and seek advice where needed.
Over the years, we’ve consistently noticed something: rent and property values tend to move together.
It’s a common investor rule of thumb (sometimes called the “1,000 Rule”) — and for us, it’s been a helpful way to think about value. Again, this is just our own observation and in metropolitan Brisbane it has been a great guide with what we do. As an example $940/week rent - rule of thumb means value $940k. Obviously a number of variables so do your homework.
Why We Love Granny Flats
If you run the numbers, a stand‑alone house purchase in today’s market is often heavily negatively geared. But when you add a well‑designed granny flat, the maths can shift. Here’s the basic idea:
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Look at the all‑in cost of the granny flat.
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Look at the granny flat rental yield.
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Combine the two (house + granny rent).
When done right, the overall return becomes far less negatively geared — sometimes close to even, and in some cases, only slightly negative. Using the rental income from the granny flat can soften the overall holding cost of the entire property.
A Simple Example
Let’s say:
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Your granny flat costs around $100,000 ( March 2026 - next one $115k)
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You earn $400–$500 per week rent from it.
At that rate, you’ve essentially paid off the granny flat in around five years (based purely on rental income applied against the build cost).
Then imagine this:
Once the granny flat is effectively “paid off,” you could redirect that rental income to the mortgage on the main house. Doing that can transform your mortgage from a 30‑year loan into roughly a 12‑year loan — a massive difference in long‑term interest, cash flow, and equity position.
Why This Matter
Granny flats can:
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Boost rental yield
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Reduce negative gearing
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Help pay down the main mortgage faster
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Improve long‑term equity growth
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Add separate, flexible living options (family, guests, tenants)
For us, these benefits have made granny flats one of the most flexible and powerful investment tools available — but again, that’s just our experience. Please seek your own advice.
A Small Tip from the Granny Flat Family Network
Even if you’re building for personal or extended family use, to maximize financial gain, it's smart to plan the build from an investor’s perspective.
That means:
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Build a granny flat to rental investment regulation specifications
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Install separate meters
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Allowing for fencing and seperate access
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Thinking ahead about future flexibility. Circumstances change. It could be very beneficial to rent it out when life happens
At some point, when you do decide to sell, you’ll be very glad you took this approach.
Hindsight is valuable when you’re outlaying big capital dollars.
Here’s our last 2 builds:
Granny Flat #1
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Raw unit: ~$50k.
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Air con + extra kitchen bathroom cabinets $10k
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Add-ons: installation, certification, engineering, piles, trucking & crane, plumbing, fencing, decking.
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We built the deck ourselves — a huge value-add.
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Installation: ~$30k.
Granny Flat #2
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Larger unit: ~$60k.
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Air con + extra kitchen bathroom cabinets $10k
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Installation: ~$30k. Certification, engineering, piles, trucking & crane, plumbing, fencing, decking.
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Premium fencing and landscaping for tenant appeal
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Author note: Like everything else in this market, the raw unit costs have increased even in 12 months. You can still complete a project for under $120k if you manage yourself and network the right trades. 2026 installation ~$40k. Build likely $120k dependant of course on your raw unit build.
The Results
Combined granny flat only rental return: $780 per week.
Capital gain: Significant uplift in property value.
Strategy: Hold for 12 months (to reduce capital gains)
showcase returns, sell, and repeat. Of course, you can just sit on it but it keeps me busy on weekends. This is my side hustle.
This is the kind of investor-friendly model we live by — and it’s why we’re obsessed with granny flats...well technically secondary dwellings just to stress this point again.