Everything Australians ask
before building a granny flat.

E2ES Victorian fixed prices: 34 m² Compact Studio $121,000 inc GST. 60 m² Two-Bedroom $170,500 inc GST. Illustrative cash contribution is $33k–$46.5k (20% of the ex-GST price plus all GST); the remaining 80% of the ex-GST price may be financed, subject to approval. The price is all in — site preparation, trenching and connection to existing services, the slab and site clean-up are included, and variations only arise if you ask for customisation.

The fixed price covers the agreed contract scope and does not increase during construction. It is one fixed price, all in: design and approvals, site preparation, soil removal, trenching, connection to existing water, power, sewer and stormwater, the engineered concrete slab (QLD: raised steel subfloor), site clean-up and basic landscaping. Variations only arise if you ask for customisation. The free site assessment establishes the full written scope and price before contract, so there are no surprise additions during construction for that agreed scope.

E2ES's 34 m² Compact Studio at $121,000 inc GST is the lowest fixed turnkey price we know of in Melbourne for a fully-finished, permitted, connected granny flat on a real concrete slab (our July 2026 survey of Melbourne builders found entry turnkey prices from ~$133k, and independent 2026 guides put a finished 2-bed at $150k–$255k all-in). Cheaper stickers exist — kit shells, portable units on steel stumps, or prices that exclude permits, connections, appliances or slab and add $20k–$60k once tallied. See our published price-comparison table for the apples-to-apples numbers.

For 34 m² / 60 m², Victoria is $121,000 / $170,500 inc GST; Queensland, New South Wales and Western Australia are $154,000 / $203,500 inc GST. Other models vary by state. Approval pathways also differ: Sydney uses the complying-development pathway under State Environmental Planning Policy (Housing) 2021, where a private certifier determines the certificate on a statutory 20-day clock, and a Melbourne Building Permit typically takes 4–8 weeks.

Our advertised build prices include 10% GST, and every payment comes with a proper tax invoice — which is what lets your accountant claim depreciation and expenses at tax time. No stamp duty applies to construction of a new dwelling on existing land (stamp duty only applies to property purchases). Design, approvals and private surveyor fees ARE included in our fixed price. We never suggest cutting corners on paperwork to shave a headline price — it costs you more at tax time and at resale.

One fixed price, all in: design and approvals, site preparation, soil removal, trenching, connection to existing water, power, sewer and stormwater, the engineered concrete slab (QLD: raised steel subfloor), site clean-up and basic landscaping are all included. Only two things sit outside it: separate power and water meters and an NBN connection (if required), and the fridge, washing machine, dishwasher and modem — for an investment property, we suggest the tenant supplies these. The one optional extra is a 1.8 m Colorbond fence, recommended for a neater look ($120 + GST per metre). Variations only arise if you ask for customisation.

We've reviewed plenty of cheap granny flat quotes, and the savings almost always come from the two places you can't see: timber treatment grades and the foundation. A lower-grade frame and a thinner, under-engineered slab look identical on day one and cost you dearly in year five. Our slabs are engineered to AS 2870 from an actual soil test, our frames are LVL or Z275 galvanised steel rather than the MGP10 pine that is the industry norm, and the envelope is Colorbond roofing, James Hardie Axon or equivalent cladding over a ventilated cavity, and R2.7 wall / R6.0 ceiling insulation. We'd rather lose a job than build something we manage the tenancy on for ten years and have to apologise for.

Per-square-metre pricing is the most misleading way to budget a granny flat, because the expensive parts — kitchen, bathroom, connections, permits, slab engineering — cost roughly the same whether the building is 34 m² or 60 m². You can see it in our own fixed prices: $121,000 inc GST for 34 m² works out around $3,559/m² inc GST, while $170,500 inc GST for 60 m² is about $2,842/m² inc GST — the bigger build is cheaper per metre because the fixed costs spread further. Compare quotes on the total delivered price against a like-for-like inclusion list, never on $/m². The full line-item breakdown of what our fixed prices include — and the only two items that sit outside them — is published on our granny flat cost page (e2es.com.au/granny-flat-cost).

Book the free site assessment, or start with the instant address check at e2es.com.au/can-i-build-a-granny-flat. After the assessment you receive a written fixed-price proposal for your address: the selected drawing and specification, the state price including GST, what the price covers (design and approvals, site preparation, soil removal, trenching, connection to existing water, power, sewer and stormwater, the engineered concrete slab — a raised steel subfloor in Queensland — site clean-up and basic landscaping), the only two exclusions (separate power and water meters and NBN connection if required; the fridge, washing machine, dishwasher and modem), the optional 1.8 m Colorbond fence at $120 + GST per metre, the approval pathway found for your lot, and the programme — 4 weeks paperwork, then 3 months construction, with start dates agreed before signing. The agreed contract price does not increase during construction; variations only arise if you ask for customisation.

Usually the question answers itself once you see where setbacks are measured from: the legal boundary on the title, not the fence. In Victoria the no-permit pathway requires the dwelling behind the front wall of the house (reg 74A) and 1 m from the side and rear boundaries for walls up to 3.6 m (reg 79); in Queensland the QDC MP 1.1 / 1.2 setbacks apply; in New South Wales the Housing SEPP Schedule 1 standards do. A fence, a roof edge and the legal boundary can be three different lines, and the building surveyor or certifier assesses siting against the legal one. Where the existing pegs or the plan of subdivision do not settle it, a licensed land surveyor’s boundary re-establishment survey does — a different document from the building surveyor’s permit and from the title and plan of subdivision we order for every site assessment. Whether your lot needs one is one of the things the free site assessment establishes, and it appears as a line in the written scope — included, allowance or separately quoted — rather than being discovered on site.

It depends on the state, the property and the proposed use. Planning Victoria’s October 2026 guidance describes an 80 m² small-second-dwelling planning definition under VC306, subject to lot, zone, overlay and other conditions; corresponding building-system amendments are a separate transition. A building permit is always required. Queensland owners must check their council’s scheme and obtain building approval. NSW secondary dwellings use complying development or a council application when the relevant standards are met. A published model or price does not establish approval. Read the current government sources linked below and obtain a property-specific assessment.

There is no single Australian minimum. In Victoria, a residential lot below 300 m² is a planning-permit trigger under the current guidance, not a universal ban on small second dwellings. NSW complying development generally requires at least 450 m², subject to the stated exception for a secondary dwelling wholly within an existing house; other proposals may use a council DA. Queensland requirements depend on the local planning scheme. Lot area alone cannot establish feasibility: check the zone, overlays, title, setbacks, usable space, services and the actual design.

The National Construction Code defines Class 1a as “a single dwelling being a detached house; or one of a group of attached dwellings being a town house, row house or the like”, and Class 1b as “a boarding house, guest house or hostel that has a floor area less than 300 m² and ordinarily has less than 12 people living in it”, or four or more single dwellings on one allotment used for short-term holiday accommodation. A self-contained granny flat is Class 1a, the same class as the main house, so the lot simply has two Class 1a dwellings. All E2ES designs are Class 1a with their own kitchen and bathroom. Two things worth separating: the building classification is set by the NCC, but whether rooming-house obligations start is set by STATE law and counts people, not leases — in Victoria that threshold is four or more people able to occupy rented rooms. Class 1b is not a permission to run a given number of leases, and anyone telling you “Class 1b means you can have three leases” is misreading the code.

A Heritage Overlay (HO) does not automatically mean a planning permit. Since VC253 (still in force after VC306), clause 43.01 exempts a small second dwelling no more than 5 m high and finished in muted tones and colours, subject to any controls in the overlay schedule. Where the schedule or the design falls outside that exemption, a planning permit is required before the building permit: we engage local heritage consultants and prepare the design to minimise impact on the original main dwelling, and that approval can take 6–12 months. Sometimes the answer is a hard no — we tell you in writing at the site visit before any contract.

State Environmental Planning Policy (Housing) 2021, Chapter 3 Part 1 — which succeeded the Affordable Rental Housing SEPP 2009 on 26 November 2021 — lets a homeowner add a secondary dwelling to a residential lot of 450 m² or more through a Complying Development Certificate issued by a private certifier, determined on a statutory 20-day clock. No development application. No neighbour consent (the certifier notifies neighbouring occupants, but does not need their agreement). No council referral. The dwelling must be 60 m² or less of total floor area and meet the policy’s setback and height standards — all E2ES designs do.

The process depends on the approval route. A planning application may involve notice, objections and review rights; exemptions and building approvals have different procedures. A proposal also has to meet the applicable siting, privacy, fire-safety and other requirements. We do not promise that neighbours can never be involved, or that a particular application has no appeal risk. Confirm the process for the actual property with the council and building surveyor or certifier.

One. The small second dwelling building permit can only be issued once per lot — that's why we design carefully upfront to maximise what that one approval delivers. Note that an existing original dual-occupancy building (e.g. an old house already split in two) doesn't count as a small second dwelling, so you can usually still add a granny flat to it.

A restrictive covenant or section 173 agreement can affect the proposal even if a planning-permit exemption applies. The Planning Victoria guidance says to check whether the small second dwelling would breach a registered restrictive covenant; an exemption does not erase private title restrictions. Obtain the title and complete instrument, identify who benefits and get appropriate legal advice before relying on the site as buildable.

We run a free feasibility assessment before you spend a dollar. The key checks: backyard size and shape against the layout you want, easement locations (you can't build over them), side access for machinery, slope (an excessively steep backyard can fail the building approval requirements), and any significant trees. Roughly speaking, if you have a typical 500 m²+ suburban block with a normal rear easement, you're very likely fine.

Over 90% of suburban blocks have an easement — usually a sewer line along the rear fence — and that's actually convenient, because your granny flat needs to connect to sewer anyway. What matters is position: a standard rear-boundary easement doesn't affect the build at all; we simply design around it. If a block has an unusual L-shaped or mid-block easement we'll tell you honestly how it constrains the design before you buy or build.

We assess exactly what must go and what can stay during the site inspection, and preparing the site is part of the fixed price. If a tree only might conflict with the slab, we wait until setout and only remove it if genuinely necessary. Council-owned street trees are a different matter — those we flag early because removal approvals are strict.

Potentially, but the exact rural zone and schedule matter. Planning Victoria identifies separate triggers for Rural Conservation, Green Wedge and Green Wedge A land, and rural earthworks or setbacks may also require a permit. The October 2026 planning definition is up to 80 m², while building-system transition requirements must be checked separately. Confirm overlays, title restrictions, waterway and road setbacks, bushfire conditions, access and an appropriate wastewater solution for the property.

The approval pathway changes; the project itself usually remains very buildable. A new small second dwelling in the BMO needs a planning permit supported by a bushfire management statement and a BAL (Bushfire Attack Level) assessment under clause 44.06 with clause 53.02 of the planning scheme. E2ES runs the whole process for you — permit, bushfire management statement, BAL assessment and the BAL-rated build spec — and confirms the timeline in writing after the site assessment.

Since Amendment VC306 (15 October 2026), Clause 73.03 defines a small second dwelling as a building of up to 80 m² total floor area on the same lot as an existing dwelling, used as a self-contained residence with a kitchen sink, food preparation facilities, a bath or shower, and a toilet and wash basin. The area is measured from the outside of the external walls (or the centre of a party wall) and excludes attached decks, verandahs, pergolas, porches and other attached roofed or unroofed structures. VC253 set the limit at 60 m² from 14 December 2023 to 14 October 2026. In the main residential zones no planning permit is needed on a lot of 300 m² or more when there is no more than one existing dwelling, it is the only small second dwelling on the lot and it is not connected to reticulated natural gas — unless an overlay, canopy-tree controls, a covenant or a Section 173 agreement says otherwise; a lot under 300 m² needs a permit. A building permit is always required: the Building Regulations 2018 (version 031) still define a small second dwelling as no more than 60 m² gross floor area and keep the access-path rule (reg 86B), and Planning Victoria says corresponding Building Regulations and Minister’s Guideline MG-12 amendments are to follow. Confirm the pathway with the council and the building surveyor, especially for any design over 60 m².

The environmental-risk overlays, mainly. Bushfire Management Overlay: planning permit restored in full, with a bushfire management statement and BAL assessment. Flood overlays (LSIO, FO, SBO): permit restored, floor levels typically set above the declared flood level. ESO, SLO, VPO and EMO: depends on the overlay schedule. The character overlays were softened: in a Heritage Overlay a small second dwelling under 5 m in muted tones is exempt (subject to schedule controls), and DDO/NCO carry conditional exemptions. Green Wedge and Rural Conservation zones require a permit regardless of overlays. We check every overlay on your title and the scheme maps, in writing, at the free site assessment.

“Granny flat” is a common description. Victoria’s planning term is “small second dwelling”; the October 2026 Planning Victoria guidance defines it by an 80 m² planning floor-area limit and other conditions. NSW and Queensland use “secondary dwelling”, with their own instruments and local requirements. These labels are not interchangeable approval certificates. A rooming house is a different use and operating model and must be assessed separately.

Yes. Victoria uses the small-second-dwelling framework, now described in the October 2026 VC306 guidance with an 80 m² planning definition and a separate building-system transition. NSW secondary dwellings can use complying development only when all standards are met, otherwise a council application may be needed. Queensland council planning schemes determine the development requirements and new dwellings require building approval. Read the separate state guides and official sources; do not transfer one state’s cap, approval route or occupancy rules to another.

The current range includes a 34 m² one-bedroom home, 60 m² two- or three-bedroom layouts with one bathroom, 80 m² two- or three-bedroom layouts with two bathrooms, Premium, a supplied two-bedroom enclosed-garage plan, and the nine-bedroom rooming-house design. Compare the seven drawing extracts at /granny-flat-floor-plans. Orientation, finishes, any requested design changes and the Premium specification are confirmed in the written project scope; a custom request needs its own review.

The same specification on every build, written into the contract. Frame: LVL or Z275 galvanised steel only (89-series galvanised steel studs, 90 × 90 mm SHS posts, AS 1397 G350) — no MGP10 pine. Roof: Colorbond® concealed-fix (BlueScope 0.53 mm). Cladding: James Hardie™ Axon™ or equivalent fibre-cement over a 27 mm ventilated cavity and breathable wall wrap. Insulation: R2.7 walls + R6.0 ceiling. Windows: black aluminium, double-glazed toughened glass. Walls and ceilings: 8 mm WPC panels, no painting. Kitchen: sintered-stone benchtop and full-slab splashback, oak-grain cabinetry with soft-close hardware, Bosch cooktop, oven and slide-out rangehood, 304 undermount sink with pull-out mixer. Bathroom: sintered-stone basin, hobless walk-in shower, back-to-wall toilet. Floors: 7 mm SPC + acoustic underlay. 160 L heat-pump hot water, 2.4 kW reverse-cycle AC. The full list is on the [specifications reference](/reference/granny-flat-specifications).

In Victoria, NSW and WA, always an engineered reinforced concrete slab (AS 2870.1), designed from your soil test, with termite management — the same foundation as a full-size home and about $25,000 for 60 m², against roughly $8,000 for a typical timber subfloor on stumps. It is included in the fixed price. In Queensland we build a raised steel subfloor 450 mm above ground — 250 mm PFC steel bearers and 140 mm C-section joists on 400 × 400 concrete stumps at least 0.8 m deep — ventilated and termite-proof. What we do not build is a portable unit on adjustable steel stumps or a trailer chassis: those feel temporary, rent for less, are treated differently by bank valuers and can fall outside the small-second-dwelling pathway.

Every E2ES home is 7-star NatHERS (owner statement, 21 October 2026). The NatHERS energy assessment is included in the fixed price, and the certificate for your design forms part of the building-permit documents. R2.7 wall + R6.0 ceiling insulation, double-glazed toughened windows, a Colorbond roof, a 2.4 kW reverse-cycle split system and 160 L heat-pump hot water. The Modular Premium reaches the same 7-star rating in its galvanised steel frame through additional thermal-break detailing.

All E2ES designs meet LHD Silver (Livable Housing Design Silver level, NCC Vol 2 H8): step-free hobless shower, 32 mm T-bar grab rail at AS 1428.1 install heights, lever taps, wide doorways, reinforced wall framing for future grab-rail upgrade. Suits ageing-in-place parents, multi-generational households, or NDIS rental scenarios.

Yes — all E2ES benchtops use the post-July-2024 silica-free engineered stone formulation. The 2024 ban prohibits crystalline-silica > 1%. Our suppliers (AC Stone ArtsCut Zero, Caesarstone Mineral, Smartstone) have all reformulated to be ban-compliant. Looks identical to the old Caesarstone, but the dust from cutting is no longer carcinogenic.

We build both, so we can be direct about the real dividing line: it isn't factory vs site, it's permanent vs removable. Our default is site-built — engineered to your soil on a real concrete slab (a raised steel subfloor on concrete stumps in Queensland), no crane needed, published fixed prices. Our Modular Premium is factory-built galvanised steel panels craned onto that same permanent slab — faster on site, premium finish, quoted per site. What we don't build, in either method, is anything on steel stumps, a trailer chassis or a caravan registration: those units rent for less, are valued and insured differently, and can fall outside the small-second-dwelling pathway. Cheap prefab and container offers on the market are usually in that removable class — and their advertised prices typically exclude transport, craneage, connections and permits.

It depends on degree, and we'll tell you straight. Moderate slopes are handled through engineering — a stepped or deepened slab design specified from the soil report. But an excessively steep backyard can genuinely fail the small second dwelling building approval requirements, and where that's the case we say so before you spend money, not after. This is exactly why our feasibility check happens before any commitment — including, for clients still house-hunting, before you buy the property at all.

No. E2ES builds on site on an engineered concrete slab (a raised steel subfloor on concrete stumps in Queensland) — or, for the Modular Premium, installs factory-built panels on the same permanent slab — and hands over a finished, permitted, connected dwelling at one fixed price, all in. It does not supply kit, transportable or relocatable units on stumps or a chassis. A kit price covers the shell: in our July 2026 Melbourne survey the kit and supply-and-build bundles excluded the stumps or slab, the building permit and council fees, the utility connections, the soil test and painting. Compare on the delivered scope, not the sticker — the methods are set side by side on e2es.com.au/modular-granny-flat and the survey is on e2es.com.au/granny-flat-prices-melbourne.

The fixed programme is 4 weeks of paperwork followed by 3 months of construction. The fixed price covers the agreed contract scope and does not increase during construction. The scope and programme start dates are confirmed in writing before signing. The free site assessment precedes contract; leasing begins after construction and the occupancy certificate.

One dedicated E2ES site supervisor per project, on site weekly minimum. You also get an owner portal with weekly progress photos, contract status, and a direct line to the supervisor. No 50-projects-at-once-for-one-PM dilution.

Critical path is in-house: 40+ salaried carpenters, plumbers, electricians, tilers and painters work directly for E2ES. We only subcontract specialist trades like crane lifts, asbestos removal, or solar PV installation. This is why we can hit fixed timelines — no waiting on a third-party tradesman who is at someone else's job.

Defect Liability Period applies per Master Builders HC 8 (2023) Clause 14 — typically 90 days for cosmetic and 6 years for structural. Plus your statutory protections under the Domestic Building Contracts Act 1995 (Vic) / equivalent in NSW + QLD. OptimaRea property management coordinates any defect repairs directly with the E2ES build team (sister company) — owner doesn't chase trades.

Construction loan typically draws down in 4 stages: deposit (slab pour), frame complete, lockup, fitout. Bank inspections occur at each stage; once signed off, the next tranche releases. E2ES coordinates inspections with the bank-appointed surveyor — owner does not chase paperwork.

The three-month construction programme covers underground services, engineered slab and termite protection, framing, roof and cladding, rough-in, insulation and plaster, fit-out, waterproofing and final inspection. The sequence and programme start date are agreed before signing; we keep the owner informed as each stage progresses.

Surprisingly little. You sign the engagement letter and building contract (we recommend the permit applicant matches the name on your property title), pay the staged payments, and sign off any customisation you ask for. Some councils require an asset protection permit before works start — a simple online form with a refundable deposit — and we walk you through it. Everything else, from design to surveyor liaison to final certificate, is our job.

After the final building inspection passes, the building surveyor issues the Occupancy Certificate (OC) — the document that makes the dwelling legal to occupy and rent. Before the OC we also complete the items inspectors check: compliant window coverings, heating/cooling, and safe access. Then we handle the finishing touches — privacy fence, final clean, garden tidy — and our leasing team typically has the listing photographed and advertised within days of the OC.

Yes — most of our builds happen with tenants in the main house. Our property management team notifies the tenants before works begin, the crew accesses the backyard via the driveway or side access rather than through living areas, and we install the dividing fence so both the construction zone and, later, the two tenancies have clear separation and privacy. Managing both the build and the tenancy under one roof is exactly what our integrated team is for.

Three things, and we manage all three in the open. Ground conditions: soil tests are samples, so occasionally excavation reveals soft layers that need a deeper footing — the engineer specifies it, and the concrete slab is fully included in the fixed price. Weather: slab pours and waterproofing wait for dry windows, which can push completion by a week or two. Utility connections: rarely, a water authority assessment complicates the tie-in (e.g. if the main is across the road), and we escalate directly with the authority on your behalf. What doesn't go wrong: the contract price, the spec, and who's accountable — that's us, end to end.

The fixed programme is 4 weeks of paperwork followed by 3 months of construction. We assess overlays, covenants, soil, access and service connections before signing, then record the agreed scope, price and programme start dates in the contract. The fixed price covers the agreed contract scope and does not increase during construction. The scope and programme start dates are confirmed in writing before signing. Approval decisions remain with the surveyor, certifier or council; the assessment identifies the required pathway before contract.

OptimaRea (our property management arm) begins advertising 5 days before handover. Open inspections start on handover day. 4-point tenant screening (income verification, references, prior-tenancy database, credit check), 48-hour application processing. A tenant is typically in within 1–3 weeks of handover.

Yes — many owners do. But OptimaRea is set up to make this seamless (1:50 manager ratio, Tapi AI 24/7 maintenance dispatch, quarterly inspections, VCAT representation). Our PM fee is 7.7% inc GST, which is reasonable given the integration with the same team that built the flat.

Yes — this is the part most builders can't offer. OptimaRea (our management arm) runs 300+ tenancies including dual-living and multi-lease setups: separate leases, separate bonds, sub-metered utilities, per-tenancy inspections. All in Class 1a dwellings. Victoria counts rooming-house obligations in PEOPLE, not leases — council registration and a Consumer Affairs Victoria operator licence start once the rooms available to rent can hold four or more people in total; we tell you in writing which apply to your configuration.

Subject to your local council's STR (short-term rental) policy + body-corporate rules (if any). Melbourne metro allows STR with permit; Sydney has a hard 180-night-per-year cap; Brisbane is liberal; Gold Coast beachside zones allow STR with registration. E2ES designs are equally suitable for STR or long-term — we model both at the site visit.

We do not publish an expected granny-flat yield, because the honest answer depends on what your dwelling actually lets for, what you borrow and at what rate, and what your holding costs are — and a figure quoted without those is a representation we could not stand behind. What we can show you is the record and the arithmetic. The record: across the 77 completed E2ES dwellings currently leased and managed — 74 in Victoria and 3 in Queensland, 18–60 m², across 21 suburbs, as at the dataset refresh on 27 August 2026 — recorded weekly rents run $275 to $630 with a median of $466, and recorded time from listing to signed lease runs 5 to 10 days with a median of 7. Those rents mix rent recorded against the dwelling with a comparable figure for the same suburb where our leasing records did not match the address, so read the range as indicative rather than as achieved rent for every property, and every one of the 77 is mapped street by street at /our-builds so you can check it. The yield: The only yield figures E2ES publishes are its owner's stated upper range, dated 21 October 2026: a rooming house can reach a gross yield of up to 13% in Melbourne and up to 15% in Queensland. That is an upper range, not a forecast or an expected result — the outcome for any property depends on the site, the rents achieved, vacancy and costs. A granny flat is not a rooming house, and E2ES states no granny-flat yield above that range. No range is stated for New South Wales or Western Australia. Annual rent divided by the build price is not a rental yield either — it leaves out the land the dwelling sits on, vacancy, council rates, insurance, management, maintenance, interest and tax — so we no longer publish that ratio. After the site assessment we put a suburb-specific indicative rent in writing; the return you then calculate from it is yours to model with your own broker and accountant.

Subject to state Residential Tenancies Acts (Vic RTA 1997 / NSW RTA 2010 / Qld RTA 2008). Process takes 6–12 weeks via VCAT (Vic) / NCAT (NSW) / QCAT (Qld). OptimaRea handles all paperwork + tribunal representation. We screen tenants tightly (4-point check) up front to minimise this.

Slightly, and the maths still wins decisively. A house that rents for $520–550/week as a whole might rent at $460–500/week once it shares the block with a granny flat — but the combined income jumps dramatically. A recent example we modelled: main house $460 + dual-living granny $310 + $310 = $1,080/week total, versus around $550/week without the build. The dividing fence and separate entrances are what protect both tenancies' privacy and keep both rents strong.

Melbourne's rental shortage answers this emphatically. At a recent open home for one of our completed projects, ten groups inspected and eight expressed strong interest, with no concerns raised about the granny flat next door. Separate entrances, a dividing fence and bills-included pricing make granny flats genuinely attractive to singles and couples priced out of full houses — and the main house rents to families who value the lower whole-house price point.

The standard, proven approach is bills-included rent with a check-reader on the granny flat's supply, so usage can be fairly apportioned. Fully separate power and water meters are possible but rarely worth it: they sit outside the fixed price and are only needed if you require them, and a new water meter involves a licensed plumber, a water-authority application and roughly two months of lead time. Victorian law also requires fully independent, certified metering before you can bill tenants separately for electricity — which is exactly why bills-included is the market norm for granny flats.

No. In Victoria a rooming house is a building where one or more rooms are available to rent and four or more people in total can occupy those rooms (Public Health and Wellbeing (Prescribed Accommodation) Regulations 2020). Two occupants in a two-bedroom granny flat — on one lease or room by room — sit well inside that threshold, and that is the straightforward way to run two rental incomes from one build. Cross that four-person threshold and three separate obligations start at once: registration of the premises with your council as prescribed accommodation, a rooming house operator licence from Consumer Affairs Victoria under the Rooming House Operators Act 2016, and in most cases a change-of-use planning permit. They are legal requirements, not paperwork we can waive — we will tell you in writing before contract which of them your configuration triggers, and we manage the applications for the ones that apply.

Standard owner-occupier with > 50% equity in their primary home + income > $80k/yr typically qualifies. We refer to brokers who specialise in granny-flat construction loans. The loan is secured against the new building (the 80% portion), drawn down in 4 stages. Owner contributes the 20% deposit + permits + connections at signing.

Yes — but complexity is high. Must comply with SISA s67A LRBA rules (Limited Recourse Borrowing Arrangement). Cannot live in it yourself or rent to related parties. Talk to a licensed financial adviser experienced in SMSF property + a specialist lender first. We refer to both.

Once the occupancy certificate is issued, lenders re-value the property. A compliant, certified second dwelling is usually counted in the new valuation, but the amount depends on your lot, your lender and the market at the time, and we do not estimate it. Major lenders generally recognise a completed, permitted second dwelling as a value-adding improvement. We are not credit providers and do not recommend or compare lenders — talk to your own broker or bank about what they will accept. You can refinance to release equity for your next investment.

If the granny flat is rented out (any portion), depreciation, loan interest, council rates, insurance, repairs, and PM fees are tax-deductible against rental income. A Quantity Surveyor's depreciation schedule typically generates ~$5k–$10k/yr deductions. We refer to QSs experienced in granny-flat depreciation schedules.

If granny flat is rented continuously, it forms part of the investment side of your property. CGT applies on the rented portion on sale. The 6-year absence rule (PPOR exemption) can apply if you've lived in the main house. Talk to an accountant — this is where the math gets interesting for SMSF + family households.

Yes — once it has an Occupancy Certificate. Your title never lists buildings, but when a valuer or bank investigates the property they find the building permit and the OC on record, and that OC is precisely what folds the granny flat's value and rental income into the formal valuation. This is why we insist on the fully-permitted pathway: an unpermitted structure is invisible to the bank at best, a liability at worst. After OC, many of our clients revalue and refinance to fund their next purchase.

During construction, the builder carries construction-phase building insurance covering works-in-progress risks — it's in place after contract signing, before works start. Once the granny flat is complete and the OC issues, that policy ends and you add the new dwelling to your own building insurance, plus landlord insurance once tenanted. We prompt you at each handover point so there's never a coverage gap. Statutory builder warranties (defect liability + 6-year structural) apply on top.

Judge it as an investment, not a purchase, and do the arithmetic yourself rather than taking a headline number. On a 34 m² build at $121,000 inc GST, a $380/week target rent is $19,760 a year before any costs at all — before vacancy, council rates, insurance, management, maintenance, any interest on borrowed funds and tax, all of which reduce it materially. Dividing that rent by the build price does not give a rental yield, because it leaves out the land. E2ES owner-stated upper range (21 October 2026): rooming-house gross yield of up to 13% in Melbourne and up to 15% in Queensland — not a forecast; the result depends on site, rents, vacancy and costs. What genuinely differs from buying a property is the cost base: no land purchase, no stamp duty on the land, no buying agent fees, because you already own the ground it sits on. Depreciation and any valuation effect depend on your own circumstances — confirm both with your accountant and your lender. The comparison worth making is against the backyard as it is today.

Sometimes that's right — and we'll tell you when it is. But be clear-eyed about the trade-offs: subdivision realistically needs 300 m²+ of spare rear land, takes 12+ months through planning, costs far more in consultants and infrastructure contributions, and permanently breaks the integrity of your landholding. On an eligible Victorian lot a granny flat usually needs no planning permit, starts earning within months, and doesn't foreclose the subdivision option later. Several of our clients run both: granny flat on one side for cash flow now, subdivision application running in parallel.

Our honest decision framework, refined over hundreds of client portfolios: if your strength is borrowing capacity, build a granny flat — it lifts both rent and valuation, and the build can be equity-funded. If your strength is spare cash and the house has a big floorplan, a rooming-house-style conversion (~$70–100k, run under the registration and operator-licence rules once four or more people can occupy the rooms) squeezes maximum rent from the existing structure but adds little bank valuation. If your strength is high personal income, simple whole-house leasing with negative gearing may beat both. Many clients sequence them: convert now, build later.

Be very careful — this is one of the most common traps we rescue buyers from. Many backyard structures were approved (if at all) as a Class 10a shed or studio, not a Class 1a habitable dwelling: the slab, materials, wiring and fire separation were never assessed for someone to live in. Renting one out risks fines, refunding all rent collected, voided insurance, and serious liability if anything goes wrong. We check the permit history on every property; an unpermitted structure is worth something as storage — as income, it's worth zero until it's done properly.

Because we're not just the builder — we're the investment machine around it. We (and our sister companies) find the property, verify the block's feasibility before purchase, design for maximum rent, build with fixed pricing, then manage the tenancies for years afterwards. A volume builder's incentive ends at handover; a handyman's ends at the last invoice. Ours starts at handover — every granny flat we build becomes a tenancy we manage, so we can't afford to build anything we'd have to apologise for.

Dual Living has been withdrawn. Our Victorian 34 m² Compact Studio is $121,000 inc GST and the 60 m² Two-Bedroom is $170,500 inc GST; Queensland, New South Wales and Western Australia are $154,000 / $203,500 inc GST. Other current models are listed by state in the configurator. Compare available layouts and the Cash / Finance illustrations in the configurator; site suitability is confirmed at your assessment.