Everything Australians ask
before building a granny flat.

E2ES fixed prices: 30 m² Compact Studio $110,000 + GST. 60 m² Two-Bedroom $155,000 + 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. 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 infrastructure charge and 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 (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.

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 30 m² or 60 m². You can see it in our own fixed prices: $110,000 + GST for 30 m² works out around $3,700/m² + GST, while $155,000 + GST for 60 m² is about $2,583/m² + 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 site-variance items that sit outside them — is published on our granny flat cost page (e2es.com.au/granny-flat-cost).

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). In NSW, the complying-development pathway under State Environmental Planning Policy (Housing) 2021 Ch 3 Pt 1 (successor to the Affordable Rental Housing SEPP 2009 since 26 November 2021) needs no development application on lots ≥ 450 m² — a private certifier determines the CDC on a statutory 20-day clock.

There are two different numbers here and they should not be confused. The LEGAL threshold in Victoria is 300 m²: under Amendment VC253 (gazetted 14 December 2023) a small second dwelling of 60 m² or less needs no planning permit on a lot larger than 300 m² in the Residential Growth, General Residential and Neighbourhood Residential zones, provided the other conditions are met. At 300 m² or below you can still build — you simply need a planning permit, which qualifies for the fast-tracked VicSmart pathway. Other states: Brisbane (LMR) 400 m², Gold Coast 600 m² in most residential zones, Sydney 450 m² on the SEPP Complying Development pathway (a DA pathway remains available below that, 8–12 weeks). Separately, E2ES’s own build-feasibility filter looks for roughly 350 m²+ with side access wide enough for materials — that is our commercial preference, not a legal requirement, and we confirm the position on your specific lot in writing at the free site assessment.

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.

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.

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.

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. 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.

Yes. In Victoria, Amendment VC253 wrote the small second dwelling exemption into the Rural Living, Farming and Rural Activity zones as well as the residential zones, each with zone-specific conditions. The core rules are unchanged: 60 m² or less, no more than one existing dwelling on the lot, fully self-contained, no reticulated gas. On acreage the real checks are overlays — a Bushfire Management Overlay or Environmental Significance Overlay moves the lot onto a planning-permit pathway, which we manage end to end with timing confirmed in writing after the site assessment — and wastewater: lots without sewer need a council-permitted on-site wastewater system under the Environment Protection Regulations 2021, sized off a land-capability assessment of your soil. Green Wedge and Rural Conservation zones always require a permit. We confirm your exact zone, overlays and wastewater position in writing at the free site assessment.

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. If the assessment returns BAL-29 or higher, allow $20k–$40k for BAL-rated construction upgrades — priced in writing before contract. 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.

Eight conditions, all required: the lot is larger than 300 m² (in the Residential Growth, General Residential and Neighbourhood Residential zones — other zones have their own VC253 pathways); gross floor area is 60 m² or less; there is no more than one existing dwelling on the lot; it is the only small second dwelling on the lot; it is fully self-contained (kitchen sink and food-preparation facilities, bath or shower, toilet and wash basin); it is not connected to reticulated natural gas; no overlay on the land requires a planning permit — a Bushfire Management Overlay or a flood overlay restores the permit requirement, and a BMO adds a BAL assessment; and no restrictive covenant or Section 173 agreement on title prevents a second dwelling. Failing one condition means falling back to a planning-permit pathway, not a dead end. A building permit is always required. The full guide: e2es.com.au/small-second-dwelling-victoria.

The environmental-risk overlays, mainly. Bushfire Management Overlay: planning permit restored in full, with a bushfire management statement and BAL assessment (BAL-29+ adds $20k–$40k of construction upgrades). 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.

Same building, different legal labels. "Granny flat" is the everyday name. Victoria’s planning system has called it a "small second dwelling" since December 2023 (Amendment VC253): self-contained, 60 m² or less, same lot as the main house. NSW and Queensland planning schemes call it a "secondary dwelling". The term to keep separate is Victoria’s old "dependent person’s unit" (DPU) — a legacy pathway with occupancy restrictions that VC253 replaced. The label matters when you search a council planning scheme or brief a surveyor: search the legal term for your state, not "granny flat".

Substantially — three states, three frameworks. Victoria (Amendment VC253, December 2023): a small second dwelling up to 60 m² needs no planning permit on most residential lots over 300 m² — only a building permit — with overlays (bushfire, flood) restoring the permit requirement. NSW (Housing SEPP 2021): up to 60 m² on residential lots of 450 m² or more, approved by a private certifier on a statutory 20-day clock via a Complying Development Certificate; rentable to anyone since 2009. Queensland: size caps are council-set (Brisbane 80 m², Moreton Bay 45–55 m², Logan 70 m², Gold Coast 80 m²), and since 26 September 2022 a secondary dwelling can be rented to anyone state-wide. All three: one per lot, same title, no subdivision, building approval always. Our state guides: e2es.com.au/small-second-dwelling-victoria, /granny-flat-rules-nsw and /granny-flat-rules-queensland.

The two E2ES layouts (30 m² Compact, 60 m² Two-Bed) 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 transportable 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 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, no crane needed, published fixed prices. Our Modular Premium is factory-built LGS 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.

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 two 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 two 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.

Our 2-month benchmark (about 1 month of paperwork + about 1 month on site) assumes an eligible lot: no permit-triggering overlay, no blocking covenant, standard soil and standard connections. The things that genuinely move it: an overlay that restores the planning-permit requirement (bushfire, flood, some heritage schedules) switches the project to a permit pathway whose timing we confirm in writing after the site assessment rather than guess; a restrictive covenant that needs legal work runs on its own clock; rock or soft soil found at excavation adds engineering time; wet weather holds the slab pour and waterproofing; and, rarely, a water-authority connection assessment complicates the tie-in. Every one of these we can see up front is flagged in writing at the free site assessment, before contract — the fixed price does not move with the calendar.

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 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 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 arithmetic: annual rent divided by the GST-inclusive build cost gives a gross rent-to-build-cost ratio, before vacancy, council rates, insurance, management, maintenance, the land the dwelling sits on, any interest on borrowed funds, and tax. That is not a property rental yield — the denominator is the build cost, not the value of the land and house — and it is not a forecast for your lot. 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 (~$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.

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 occupancy certificate is issued, lenders re-value the property. CoreLogic Melbourne data shows a $110k granny flat adds $180k–$220k to title value. 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 30 m² build at $110,000 + GST, a $380/week rent is about 16% of the $121,000 GST-inclusive build cost per 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, and it is not a property rental yield because the denominator is the build cost rather than the value of the land and house. 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. 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, 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 current range is the 30 m² Compact Studio ($110,000 + GST) and 60 m² Two-Bedroom ($155,000 + GST). Compare both layouts and the Cash / Finance illustrations in the configurator; site suitability is confirmed at your assessment.