Everything Australians ask
before building a granny flat.

E2ES fixed prices: 30 m² Compact Studio $110,000 + GST. 60 m² Two-Bedroom $170,000 + GST. 60 m² Dual Living $200,000 + GST. Cash down is ~20% of build cost (~$32k–$52k including permits and connections); the other 80% is a construction loan. Site-condition variations are charged per metre and disclosed in writing before any contract.

The price is fixed subject to standard site allowances: 10 m sewer + 15 m cabling included, 10 m³ slab allowance, no rock. Variations only apply if your site exceeds these allowances and are documented per Master Builders HC 8 (2023) Clause 12. We disclose every potential variation in writing at the free site visit — surprise-billing at end-of-build is not part of our contract model.

E2ES's 30 m² Compact Studio at $110,000 + 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.

Base build cost is identical across the 4 cities. Brisbane City Council adds an Infrastructure Charge of ~$8k–$12k per secondary dwelling. Gold Coast City Council adds ~$15k Infrastructure Charge plus potentially $8k–$15k for Coastal Hazard Overlay raised slab. Sydney has no state-level IC but uses the 10-day CDC pathway (lowest holding cost). Melbourne is mid-range — no IC in most councils, 4–8 week Building Permit.

GST is added on top of the build price (10%), 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). Council application fees 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.

A few site-specific items sit outside the build price, and we quote them transparently before work starts: occasional extra council documents (typically ~$1,000), a privacy fence between the main house and the granny flat (~$140–150 per metre), a separate electricity check-reader (~$500), tree removal (~$400 per tree) or shed demolition (~$600) if your backyard needs clearing, and a final clean. If a garage needs modification for machinery access, that is typically $3,000–$4,000. No surprises — every item is quoted and approved by you first.

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 use properly treated Australian timber, and our cladding, roofing and insulation are brand-name Australian materials (James Hardie, Colorbond, CSR Bradford). We'd rather lose a job than build something we manage the tenancy on for ten years and have to apologise for.

In most cases NO. In Victoria, the small second dwelling reform (Amendment VC253, December 2023) removed the planning-permit requirement for second dwellings up to 60 m² on lots ≥ 300 m² — leaving only a building permit, which our private surveyor turns around in 2–4 weeks (the whole paperwork stage closes in ~1 month). Exceptions: Heritage Overlay (HO), Design and Development Overlay (DDO), Bushfire BMO at BAL-29+, Flood overlays (LSIO/FO/SBO). NSW SEPP 2009 Complying Development pathway needs no Planning Permit on lots ≥ 450 m² — 10-day CDC.

Melbourne (Victoria): 350 m² in GRZ; 500 m² in LDRZ. Brisbane (LMR): 400 m². Gold Coast: 600 m². Sydney (SEPP CDC): 450 m². For lots smaller than these thresholds, a DA pathway is still available but takes 8–12 weeks.

Class 1a is a self-contained Class 1 dwelling (a single domestic home). A granny flat is also Class 1a. The lot then has two Class 1a dwellings — main + granny flat — which is allowed without triggering Class 1b (rooming house / boarding house). Class 1b only kicks in if you have 4+ unrelated occupants in non-self-contained accommodation. All E2ES designs are Class 1a, fully self-contained, with their own kitchen + bathroom — never Class 1b.

Heritage Overlay (HO) requires a Heritage Permit before the Building Permit. We engage local heritage consultants and prepare the design to minimise impact on the original main dwelling. 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.

NSW Affordable Rental Housing SEPP 2009 lets a homeowner add a granny flat to any residential lot ≥ 450 m² via a Complying Development Certificate (CDC) issued by a private certifier in ~10 working days. No DA. No neighbour consent. No council referral. Granny flat must be ≤ 60 m² GFA and comply with SEPP setback/height rules — all E2ES designs do.

No. Because a sub-60 m² small second dwelling doesn't go through the planning permit process, there is no public advertising and no neighbour objection period — unlike a subdivision or townhouse development. The build simply has to comply with building regulations, including standard boundary setbacks (typically 1 m from the fence in Victoria). The same is true of SEPP CDCs (NSW) and Code Assessable MCUs (Brisbane / Gold Coast). Only if your site needs a Planning Permit (overlay sites) does council consult neighbours.

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, which is exactly where the 60 m² Dual Living concept comes in: one permit, one roof, two rentable units. 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.

Almost never. Most covenants in suburbs like Narre Warren South and Berwick were placed by the original developer to keep street character (e.g. brick-only, no subdivision). They restrict planning-permit-level development — subdividing and building a second house — but a sub-60 m² granny flat goes through a building permit, not a planning permit, so those covenants typically don't touch it. We review your title as part of our free feasibility check and tell you definitively before you commit.

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 (a garage or narrow corridor can sometimes be modified for ~$3,000–$4,000), 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 price each item transparently — recent projects have run about $400 per tree removed and around $600 for a shed demolition, with simple items often thrown in free by our crew. 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.

The three E2ES layouts (30 m² Compact, 60 m² Two-Bed, 60 m² Dual) are fixed. Customisation is limited to siting (orientation, position on the lot), façade adaptation (colours, cladding pattern), and finish selection (kitchen colour, bathroom tile). The reason: every E2ES plan has been torn down and rebuilt based on 300+ actual rental enquiries. Custom plans add design risk and cost overrun.

The best Australian-made materials in the market, on every build. Roof: BlueScope Colorbond steel (Lysaght Klip-Lok 700, Surfmist). Cladding: James Hardie Scyon™ Axon™ 9 mm cement-fibre. Frame: Australian MGP10 H2 termite-treated pine. Insulation: CSR Bradford Gold R2.0 wall + R3.5 ceiling glasswool. Kitchen: silica-free engineered stone benchtop + matt-white shaker. Bathroom: Duratile Crema porcelain + Nero Mecca Care tapware (LHD Silver). Floor: SPC Hybrid 7 mm. AC: TCL 2.4 kW reverse-cycle. Hot water: Midea 160 L heat pump. Cheaper quotes usually reach their price with import-grade substitutes — ours are locked in the contract by brand and product name.

Always an engineered reinforced concrete slab (AS 2870.1 Class M/H, waffle-pod or raft) with termite management — the same foundation as a full-size home. Portable and prefab units that undercut on price sit on steel stumps or a trailer chassis: they feel and sound temporary, rent for less, are treated differently by bank valuers, and can be excluded from the small-second-dwelling pathway. The slab is included in every E2ES fixed price.

All E2ES designs meet 6-star NatHERS minimum. R2.0 walls + R3.5 ceiling insulation, double-glazed windows, cool-roof Surfmist Colorbond, 2.4 kW inverter reverse-cycle AC (TCSPF ~6.0). The Modular Premium variant achieves 7-star NatHERS 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 on site, and we're direct about why: prefab units on the market are often limited in size, and the end-to-end delivery time we've seen runs 9 months or more once transport, craneage and connections are done. Site-building also means the dwelling is engineered to your soil on a real concrete slab, clad in standard Australian materials, and indistinguishable from a conventional home for valuation purposes. Prefab has its place; maximising the value of your backyard isn't it.

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.

From your decision: ~1 month of paperwork (design + building permit — most Victorian lots need no planning permit under the small second dwelling reform, Amendment VC253) + ~1 month of construction on site = 2 months decision → finished build. Typical Melbourne builders quote 4–7 months end-to-end; our fixed three designs, pre-engineered drawings and in-house trades are what compress the timeline. A tenant typically moves in 2–3 weeks after handover.

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.

A fixed, rehearsed sequence: underground services → engineered slab pour with termite protection → timber framing → roof and external cladding → electrical and plumbing rough-in → insulation and plastering → internal fit-out, fit-off and waterproofing → final inspection. Because the three designs are pre-engineered and our trades are in-house, the stages run back-to-back with no idle days — that is what compresses the on-site window to ~4 weeks. Rain is the main variable: slab pours and waterproofing wait for dry windows, and we tell you about a delay rather than hide it.

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 approve any site-specific quotes we put in front of you. 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 needing extra concrete — typically a low-thousands variation, evidenced by the engineer before we charge. 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.

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% + 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 Class 1a compliant — up to 3 leases per lot with no rooming-house licence. The 60 m² Dual Living plan was designed from that operating experience, which is why the two studios have independent entries, metering and acoustic separation.

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.

Gross yields on build cost (2026 averages from E2ES managed projects): Melbourne ~13.9–16.5%, Brisbane ~13.1–15.6%, Gold Coast ~14.2–17.0% (long-term) or 22–28% (STR), Sydney ~15.6–18.4%. Net yields on cash down are 30–44% year one (because 80% of build is financed).

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 (~$500) on the granny flat's supply, so usage can be fairly apportioned. Fully separate utility meters are possible but rarely worth it: a separate power meter runs $3,000–$4,000 plus trenching and supplier fees, 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.

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 occupancy certificate is issued, lenders re-value the property. CoreLogic Melbourne data shows a $110k granny flat adds $180k–$220k to title value. The equity uplift is recognised immediately by major banks (CBA, Westpac, NAB, ANZ accept granny flats as a value-adding improvement). 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. A 30 m² build at $110k + GST renting ~$380/week gross is a yield of over 15% on the build cost itself — no land purchase, no stamp duty, no agent fees, because you already own the land it sits on. Add the valuation uplift once the OC issues and the depreciation deductions (~$2,750/year as a rule of thumb), and it is consistently the highest-return dollar our clients deploy. The genuinely expensive option is a big backyard earning nothing.

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. A granny flat 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, up to three tenancies) 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.

It's our highest-yield product: a single 60 m² building designed as two fully self-contained one-bedroom units — one building permit, one roof, two tenancies. Compliance is in the design detail: it must be engineered and documented as one small second dwelling, not disguised as two separate dwellings (which would breach the one-per-lot rule), and we design to keep it firmly on the right side of that line. Combined with the main house you have three tenancies — still within Class 1a, still no rooming-house licence.