Granny flats are a growing trend in Australian regional centres and beyond. They provide affordable housing without the burden of expensive initial investments. Building these self-sufficient living spaces is relatively simple, which fuels the transition to these dwellings.
Before you jump in, you must know the estimated costs to help you budget. Let’s break down the costs of various types of granny flats to guide your decision.
But first, here’s a glance at the estimates.
| Flat style | Estimated Price Range |
| Three Bedroom granny flat | $300,000 – $350,000 |
| Two Bedroom flat | $250,000 – $300,000 |
| One Bedroom | $150,000 – $200,000 |
| Two Storeys | $280,000 – $320,000 |
What is a Granny Flat?
A granny flat is a self-contained unit on the same property as the main home. It has the necessary amenities, including bedrooms, a living and laundry area, a bathroom and a kitchen.
Most homeowners build such units to accommodate family members or rent out for extra income.
What Does It Cost to Build a Granny Flat?
A granny flat can cost anywhere between $20,000 and $350,000. A customized granny flat is more expensive than a prefabricated flat pack.
An attached unit is also less expensive and requires less structural work than an independent unit.
Custom-built Granny Flats Vs. Kits Vs. Flat Packs
Granny flats are available in different styles and designs. Custom-built flats require work from scratch, but flat pack and kit granny flats have some pre-fabricated components.
Once you receive the package, all you need to do is attach the parts like a puzzle and connect power and water. Kit or flat-pack granny flats are more affordable, but you still need to build a foundation.
Custom-built flats are more expensive because they allow you more design control.
Sizes and Price Ranges
- 1 Bedroom ($150,000 to $200,000)
One-bedroom granny flats range between 35m2 and 45m2. A one-bedroom granny flat costs about $150,000 to $200,000 but offers excellent returns if you rent out the space.
- 2 Bedrooms ($250,000 to $300,000)
Two-bedroom granny flats are suitable for any lifestyle due to their versatile design. They offer greater investment returns, more comfort, privacy and independence.
A two-bedroom granny flat costs between $250,000 and $300,000.
- 3 Bedrooms ($300,000 to $350,000)
Three-bedroom granny flats offer exceptional investment opportunities. You should build such a unit if you live near a tourist hot spot or major facilities like universities.
Three-bedroom granny flats offer all the benefits of a typical house at a small percentage of the cost. You can expect to spend between $300,000 and $350,000 on the project.
- 2-storey ($280,000 to $320,000)
A two-storey design is a fantastic option if your goal is financial returns. The design flexibility allows you to optimize the space on both levels.
A two-storey unit will likely cost you between $280,000 and $320,000.
Other Costs to Consider – Inclusions + Exclusions
Building a granny flat involves additional costs besides the building itself. It’s essential to consider expenses such as:
- Professional drawings
- Surveyors report
- Waste removal
- Landscaping
- Professional labour, including builders, electricians and plumbers
- Council fees
Do I Need Council Approval to Build a Granny Flat?
Most local councils permit these living spaces, but you may require approval in some areas. If you need permission, the panel will need drawings of your project, and you’ll likely pay fees of up to $20,000.
Generally, your granny flat must meet Australian building standards and have a private bathroom and pedestrian access. You can only have one granny flat on your property.
Will a Granny Flat Increase the Value of My Home?
Granny flats appeal to most people because of the privacy and independence from the primary house. Part of this appeal comes from the affordable initial investment and high returns.
Generally, a granny flat can increase your property’s value by about 30%.
Conclusion
As housing demand rises across Australia, more people are finding it difficult to find affordable rental facilities, especially near popular spots.
Most homeowners who recognize this financial opportunity are now building granny flats to rent weekly or monthly. These cost-effective self-contained living spaces boost the homes’ value while earning attractive returns.
What are you waiting for? It’s time to contact professional granny flat builders and start earning this holiday season.