Get a free site inspection and quote today email ENQUIRE HERE phone 1300176278

Are Granny Flats a Good Investment?

The popularity of Granny Flats is more than ever in Sydney. They no longer just serve as an additional unit for accommodating parents or children. Instead, granny flats are now incredibly useful for generating extra income.

These appealing granny flats plans are affordable alternatives for tenants seeking inner-city rental accommodation in an expensive property market.

The Federal Government’s new measures allow homeowners to build larger and better granny flats without the red tape of complicated council approvals.

Reasons Why Granny Flats Are Good Investments

More people are looking for a reliable granny flat builder Sydney to build accessory dwelling units which are fabulous ways to invest your money, for various reasons.

First, they can offer an additional source of rental income. Homeowners can earn a steady stream of income that can pay off the initial granny flat cost quickly. They are particularly beneficial in areas with high demand for rental housing, which is all of Sydney at the moment.

In addition, the best granny flat builders Sydney reveal that these flats increase the overall value of your property. When you build an additional granny flat residence within your property, your property becomes more appealing to potential buyers. As a result, you get a higher resale value for your property.

For most people, granny flats are a good investment from a lifestyle perspective, provided you choose the best granny flat plan. These units offer flexible living arrangements for family members, such as elderly parents or adult children, while providing privacy.

But it’s crucial to note that when granny flats builders Sydney construct a granny flat, it requires significant investment and permits. You also need to comply with local zoning regulations. In addition, the rental income may be subject to taxes and other expenses such as repairs and maintenance.

The construction of granny flats surged from 4,729 in 2016 to 21,342 in 2021. These figures indicate the growing popularity of granny flats in the country. Many granny flat builders in Sydney are constructing granny flats and offering unique floor plans according to their clients’ needs and budgets. But remember that each state or territory has its rules and regulations, including the amount of land required and size of the secondary dwelling 

Benefits of Building a Granny Flat

Here are some benefits you can enjoy if you contact professional granny flat builders Western Sydney for building a granny flat.

Separate Place for Your Aging Parents or Dependent Children

If you have parents or children who depend on you financially or need your assistance, constructing a granny flat Sydney is a great idea.

Additional Income

Granny flat builders in Sydney recommend building these flats if you need additional income. Granny flats offer excellent opportunities for generating extra income. In addition, building a granny flat allows you to keep tenants without needing to buy a whole new property or block of land.


Granny flat builders Sydney NSW recommend building these units as renting out this additional residence gives you extra claimables on your depreciation schedule.

Increases the Value of Your Property

Choosing the right granny flats floor plans will increase your property’s resale and rental value considerably.

When is Building a Granny Flat a Good Investment

Here are some situations/circumstances in which you should contact granny flat builders West Sydney for building a granny flat that offers the most benefits in terms of return on investment.

  • You have space on your property to place a granny flat
  • You are looking for an income tax break from claiming depreciation.
  • You want to make an investment property more profitable
  • You have saved some money and want to invest it, it will be a great return on the investment 

How to Choose the Best Granny Flats Builders 

Look for builders with a granny flat showroom Sydney and a solid track record. They should have years of experience in building granny flats. Check the best granny flat builders Sydney reviews and testimonials to get an idea of their reputation and quality of work.

To keep you updated along the road, ensure they offer clear timeframes, project updates, and regular communication. Be sure you’re getting a reasonable price and a thorough contract that covers every aspect of the project, including timeframe, payment schedules, and warranties, compare bids and contracts from various builders.

To determine whether the builder’s style and design suit your preferences, look at their portfolio of prior work. For a more accurate representation of the finished granny flat, and request a tour of their granny flat showroom

Smart Choice Granny Flats specialises in custom granny flat designs to suit your unique property. Our selection centre and granny flat display homes showcase high-end granny flat plans and the materials available for our valued clients.

We are professional granny flat builders and we can construct your granny flat to fit your unique block shape, preferred style, and needs. Our granny flat display homes Sydney give an insight into our designs that show our flexible design approach for accommodating any granny flat budget. Get in touch with us if you need more guidance on how to choose the best granny flat floor plan for your needs.

Being expert granny flats builders Sydney, we genuinely care about your hard-earned money and won’t recommend anything that will waste your investment; our experienced team will only recommend floor plans that will provide the best returns. Our granny flat showroom Sydney is a one-stop solution for all your needs so that you can explore different options including granny flat price.

Final Thoughts 

In conclusion, yes Granny Flats are a great investment, offering returns not even possible by most other property investment options and quite a low investment cost in comparison to other property investment options. Contact the best granny flats builder Sydney if you want to explore more options. Our selection centre caters to all floor plans, from new homes to multi-story granny flats. We are expert Sydney granny flat builders that offer a variety of granny flat floor plans to our clients. Contact us, and we will provide you with the latest information about the best granny flats plans and prices NSW. 

How Much Does a Granny Flat Cost?

Granny flats, also known as Secondary Dwellings, have become increasingly popular to provide extra living space for family members, guests, or even as a rental property. However, before embarking on the construction of a granny flat, one of the primary considerations is the cost involved. 

The cost of a granny flat can vary significantly based on a variety of factors, including the size, materials used, and location. This article explores the various elements that impact the cost of building a granny flat, providing you with the insights you need to make informed decisions about this exciting addition to your property.

How Much Does it Cost to Build a Granny Flat?

The cost of building a granny flat can vary greatly depending on various factors such as the size, location, materials used, and the complexity of the design. In general, the cost to build a granny flat can range from $100,000 to $200,000 or more.

Here is a breakdown of some of the costs you can expect when building a granny flat:

  • Building plans and Private Certifier: $7000
  • Development Contribution Fees: $1,000 – $15,000 (price vary greatly depending on the council)
  • Unfavorable site conditions: $0 – $20,000 (some site are perfect and require no additional works, others can be effected from a range of issues, such as demotion of outbuildings, contaminated soils, rock, deep piers, large drop edges, retaining walls, sewer encasements, and pool removal)
  • Landscaping: $2,000 – $10,000
  • Difficult access $0 – $10,000 (many properties have great access to build the granny flat, such a driveway down the side of the house, or corner block, rear alleyway etc, however not all properties are easy to get materials into. Narrow lots can mean long walks back and forth with heavy materials, main roads require traffic control, sloping blocks can make carrying materials to the building area difficult, cranes may be required.

Factors that Affect the Cost of a Granny Flat

1. Size

Generally, the larger the granny flat, the more materials and labor will be required to build it, which means a higher overall cost. Let’s assume that a basic, one-bedroom granny flat with a total floor area of 30 square meters and costs around $100,000 to build. 

If we were to increase the size of the granny flat to two bedrooms with a total floor area of 60 square meters, the cost could go up to around $130,000. This increase is because the required materials and labour increase considerably. It may be double the size, but it does not double in price as many items cost the same or similar regardless of the size.

2. Location

Other factors such as the cost of materials and labour, can vary depending on the location if the trades and suppliers have to travel longer distances to make deliveries or carry out works. 

Some areas may require special works to be carried out to meet flood requirements, bushfire requirements, acoustic requirements near noise roads or airports, high wind areas, coastal areas subject to sea spray or traffic control on busy roads, which can increase the overall cost of construction.

3. Design

More complex and modern granny flat designs will require more time and materials to build, which can increase the overall cost. Spacing is especially important as the flat design determines how much space is available and how it will be utilized within the structure. 

For example, an open floor plan with fewer walls and partitions may be less expensive to build than a design with many rooms and hallways. Additionally, a design that has features like additional garages, alfrescos, patios, large feature windows or doors all impact the cost to build a granny flat

4. Materials

The choice of materials and finishes used in the design can have a significant impact on the cost of the granny flat. For instance, high-end finishes such as hardwood floors, brickwork, and custom cabinetry will increase the cost compared to more economical options like laminate floors, tiles, cladding, and standard cabinetry. However, you can mix and match materials and finishes to create a unique and customized look that fits within your budget. 

Hardwood floors are an excellent choice for people who suffer from allergies, as they do not harbor dust, dander, or other allergens. Stone benchtops are highly durable and resistant to heat and scratches, making them a practical choice for kitchens and bathrooms. 

5. Site Preparation

If the site is difficult to access or has limited space for equipment and materials storage, the cost of site preparation will be higher. This is because additional labor and equipment will be required to maneuver around obstacles and work in tight spaces.

Moreover, if the soil is unstable or contains rock, additional excavation and grading work may be required. The type of foundation required for the granny flat can also affect the cost of site preparation. A standard concrete slab foundation is less expensive than a raised foundation, which can require additional time, preparation work and materials depending on the raised foundation type required.

6. Utilities

The cost of water, electricity, and gas is another significant expense to consider. If the granny flat is located in a remote area, the cost of installing utilities may be higher. And if the existing utilities at the site are insufficient to support the granny flat, upgrades or modifications may be necessary. 

These upgrades can include installing upgrading electrical boards or wiring in older dwelling, or adding a new septic system. Running stormwater to the street, if the existing stormwater is not working correctly. And remember, you also have to anticipate annual maintenance on heating and cooling systems, replacing water heaters or repairing leaky pipes.

7. Timeframe

The longer the project takes to complete, the more hours of labor are required, which add up to the overall cost of the project. Most builders offer fixed pricing so this should not be a concern and any time frame should be allowed for in their pricing. However if the building project is being financed through a loan, a longer construction timeframe can mean more months of interest payments. And less months of rental income if your intentions are to rent the granny flat.

Besides, the cost of materials fluctuate over time, so a longer construction timeframe may mean that materials become more expensive. You may even have to reorder materials or purchase additional supplies if the project is delayed due to unforeseen circumstances, this is only a concern if you do not get a fixed price contract.

Final Thoughts 

Remember, the figures mentioned above are rough estimates, prices can fluctuate with changes in the industry. It’s best to consult a professional builder or contractor to get a more accurate estimate based on your specific requirements and location. Smart Choice Granny Flats offers clear insight on the financial commitment of building a granny flat in Sydney. Instant online quotes are a available, Get a free quote today.

How Big Can a Granny Flat be in NSW?

Are you considering adding a granny flat to an existing property? Whether you are planning this addition for family members or as a rental consideration, it is important that, together with all legal requirements, you also factor in how big a granny flat is allowed to be in NSW.

In today’s article, we take a look at what you need to consider when building a granny flat, as well as what the granny flat regulations for NSW are, and how you can make the most of the space that you are allowed to use for constructing your planned granny flat.

As a starting point, let’s do a quick recap of what the typical description of these dwellings are – and why they are not considered as primary dwelling but rather a secondary dwelling, the main house being referred to as the primary dwelling of the property.

What is a granny flat in NSW?

A granny flat, which is often referred to as a secondary dwelling, describes a self-contained dwelling that is located within, attached or separate to a larger home. Typically, the owner of the primary home will also be the owner of the granny flat as they cannot be sold separately (its one title)

Granny flats are often used by the elderly (although in most cases they are used for tenants). These structures have separate private entrances apart from the primary dwelling.

What certainly adds to their appeal, is that these units are also known for their affordability when it comes to property development.

What granny flat size is allowed?

The important thing to bear in mind when you are contemplating extending a property with a granny flat development, is that the options for size are not indefinite. You do not need Council approval to build your granny flat or Private Certifier Approval, provided you adhere to the minimum requirements as stipulated below.

In New South Wales, the allowed size for a granny flat is up to 60 square metres. This refers to the internal space of the granny flat, but there are also other considerations that you need to bear in mind.

If preferred, you can go smaller than this size – do take into account how it will be used, as smaller might not work in some cases where the person occupying the space needs more space.

Can I build a granny flat on vacant land?

According to granny flat regulations in NSW, you are required to have a minimum lot area of 450 square meters if you are planning to build a granny flat. Also important to know, is that you are only allowed to build one granny flat per property.

State Environmental Planning Policy guidelines also clearly state that there must be a primary dwelling on your property in order to get approval of a granny flat to be constructed. 

Am I allowed to build a double-storey granny flat on my property?

Provided that the height of this dwelling does not exceed 8.5 metres, and that you comply with the front and rear setbacks as laid out according to NSW legislation, a double-storey granny flat is possible – and can be an attractive option for creating a modern structure. However the distance required off the rear boundary to build a double storey granny flat is so substantial it only works in rare circumstances. 

The rear setbacks are typically 3 meters and the side setbacks are typically 0.9m. The setback from the main dwelling is 1.8m without the need for fire resistance design measures. 

Is a granny flat a separate dwelling then, or can I alter my home to create this space?

You are allowed to alter your current home to create a granny flat – which is good news if you want to save on funds and do not completely want to create a new structure from scratch.

However, you still need to comply with the law and need to ensure that your property is properly zoned residential to allow for a granny flat to become part of your property lot. The compliance hoops you will need to do to make this happen usually render this option non feasible.

Can I build a granny flat that is bigger than 60 square meters?

Although 60 square meters is the benchmark for most residential lots, some rural lots allow the secondary dwelling to be up to 80 percent of the main dwelling. However 60sqm is referred to as the livable space, you can add garages and large covered outdoor entertaining areas to the granny flat to make it much larger and functional

How can I optimally use the space of my granny flat?

Are you thinking that 60 square meters might be the small size for the development that you have in mind?

Consider this: Although you might be restricted in your internal space, there are still many steps that you can take to not only perfectly use the area that you have available, but also create great designs with some smart planning.

An important thing to note here, is to consider what the floor space of your granny flat includes. This could be your bedrooms, bathrooms, kitchen, dining room, living rooms and laundry room. These are the general areas that your granny flat would typically have and count towards the total internal space.

However, decks, garages, overhangs or sheds do not count as part of your internal space. Additionally, you can use roof cavities for extra storage, without needing extra space, and if you have a double-storey granny flat, you can even add a balcony to enhance the overall design.

Review the options that you have carefully, and you can make full use of your available space. Focus on both internal and external factors


Granny flats in NSW can be incredible investments that add value to any home. Always keep your allowed size for your property in mind, but do remember that these restrictions do not mean you cannot create beautiful spaces – it all comes down to planning and seeing the possibilities of what could be achieved!

If you are interested in adding a granny flat to your main property, do not hesitate to get in touch with us today – let’s work together to find the best solutions for your budget and the vision you have to make your dream granny flat a reality.

Can I Build a 2 Storey Granny Flat?

As more individuals look for alternate living arrangements, the popularity of granny flats is soaring in Australia. Many live in ecologically efficient, smaller, and self-contained homes. A granny flat is a standalone mini apartment on a property with its own living space, bathroom, and kitchen.

You may have many questions about buying or building a granny flat. From costs to design and the features you should add, this guide will help you find the answers to most of these questions.

Can You Construct a 2-Storey Granny Flat?

Since most Australian homes are single-story units, it’s natural to think that all granny flats must be single-story. But there’s news for you. You can also build a two-story granny flat in Australia.

With a two-story granny flat, you can maximize the possibilities of your backyard, provided your construction complies with the local council standards. Contacting your local council to determine which laws apply in your area is crucial before starting new construction within your property. Contacting professional granny flat builders Sydney will save you from this trouble because a granny flat builder Sydney knows the building codes and laws applicable in your area.

What Does the Law Say About the Maximum Height of Your Two-Storey Granny Flat?

A two-story granny flat is subject to the same height and interior living space as single-story granny flats, which are 8.5 and 60 square metres, respectively.

According to the Complying Development Code, a granny flat’s rear and side setbacks must increase as it grows taller to compensate for the added height. Therefore, if your granny flat’s size exceeds 3.8m, you must accurately estimate the necessary setbacks.

Why Build a 2-Storey Granny Flat?

A two-storey granny flat is perfect for homeowners who want to balance modern and affordable living. Although the primary purpose of a granny flat was to offer an independent residence for aging parents, homeowners are now building these units for several other reasons. First, choose the right granny flat floor plan for your new property. Smart Choice Granny Flats have granny flat display homes, so you can explore different options for building a granny flat.  

Whether you’re building a granny flat for loved ones or increasing rental income, a two-storey design gives multiple options. Most people prefer setting up an entertainment area or a home office downstairs while utilizing the top floor as a small apartment.

Generally, people are investing in granny flat projects because:

  • they want to build a small nearby residence for children or aging parents
  • they intend to add a rental property to earn extra income
  • they need to reduce the growing cost of property construction

Due to Australia’s lack of affordable housing options, many families now invest in studio apartments or two-story granny flats to increase their rental income. In addition to providing a secondary residence and reducing taxes, building a two-storey unit makes it easier to pay off your current mortgage and save money.

Granny flats with two stories allow homeowners to use these units as bed and breakfasts, holiday homes, off-grid sustainable houses, and even a separate workplace. So whether you are building a two-story granny flat as an investment or for your own family, smart choice granny flats can take care of your construction project from start to finish.

Benefits of Building a Two-Storey Granny Flat for Earning Rental Income

The most notable benefit you can achieve by building a two-storey granny flat Sydney is to have a property for renting purposes. A modern granny flat allows homeowners to earn a return on their investment while renting it out to others. Students, entrepreneurs, or tourists usually look for small rentals with all basic and advanced amenities. 

Building a granny flat is a terrific way to increase the value of your house, whether you’re doing it for your parents/children, as a guesthouse, or as a rental property. A granny flat’s monetary value can increase or decrease based on factors such as your location and the design of your flat.

Hence, choosing the best granny flats builder for your construction project is crucial. Smart Choice Granny Flats guarantee high-quality results for your granny flat in Sydney. Our expert and seasoned builders ensure building structurally solid and appealing granny flats to improve your rental earning potential, whether you build a single-storey or a two-storey unit.

More than 30% of Australians are looking for rental properties. Hence, the Australian real estate market has huge potential for rental properties. You should choose a granny flat floor plan as you decide on a floor plan for your primary residence. The key is choosing a plan that offers the right amenities and luxuries in your newly built granny flat.

Contemporary granny flats with high-end features appeal to today’s renters. But regardless of the floor plan you choose, it is important to work with a reliable granny flats builder Sydney to design a granny flat according to your exact requirements for pulling in tenants. High-quality materials and the right floor plan allow contractors to design a well-built granny flat to increase your renal earning potential.

What is the Cost of a Double Storey Granny Flat 

Although double-storey granny flats are famous for families and investors with more land, the added height increases construction prices. In addition, this granny flat will require more work than a one-storey unit to ensure that the design supports both levels.

The price of a granny flat with two storeys depends on several factors. According to rough estimates, building a two-storey granny flat can range from $190,000 to $300,000. Don’t consider cheaper options like granny flat kit homes because their price tag excludes hidden costs, such as installation expenses.

A more accurate estimate would be between $215,000 and $280,000 for building a two-storey granny flat. This estimate includes expenses such as approval and design fees, construction costs, and any additions or extra features you may like to add.

How to Make the Most Out of Your Two-Storey Granny Flat Design

Here we share a few tips on making the most of your space with clever design choices.

Don’t forget to check out our granny flat showroom to know what to add and how to make the most of your space.

Add a Staircase That Offers Storage

We can reduce the amount of floor it covers by structuring a staircase that goes up against the wall. We can also utilize the space underneath the stairs for extra storage.

In addition, positioning the staircase where it doesn’t block natural light or any window is a great way to keep your granny flat, bright, and airy. These are simple but effective ways to design a granny flat plan to create a cosy ambience.

Use the First Floor as a Garage

Both homeowners and renters love a granny flat above the garage. That’s because, technically, a garage is a non-habitable space (which doesn’t count in your living space).

You can enjoy the many benefits of a spacious garage downstairs. The space allows room for setting up a man cave or a workshop area while you have a full flat above.

Include a Balcony on the Upper Floor

The best granny flat builders in Sydnerecommend adding a balcony to your upper floor. That way, you can make the most of the extra height. Like the garage or downstairs deck, a balcony does not come in ‘habitable spaces,’ so it won’t deduct from your floor space because you don’t calculate it as part of your living space.

Adding a balcony is a fantastic idea because it allows more natural light to enter the flat and enjoy beautiful views of the surrounding neighbourhood.

Why Should You Choose Smart Choice Granny Flats to Build Your 2-Storey Granny Flat?

Smart Choice Granny Flats is one of Sydney’s most renowned granny flat builders. We offer a variety of granny flat floor plans and designs for your convenience. Our modern ideas come in one-, two-, three-, and four-bedroom and single and double-storey unit variations.

Our popular Modern Brick Design offers a small yet exquisite option that fits well in any backyard. This design is perfect for building a guesthouse or a small residence for friends or family. Another fantastic option to make a granny house for your aging parents or in-laws is the Hampton Design. The open layout of this flat will replicate the feel and design of a beachfront vacation home. Hence, it’s a beautiful design in our granny flat showroom Sydney.

We boast over three decades of experience designing and building single-story and two-storey granny flats. Our commitment, transparent construction process, and accurate cost estimate set us apart.

We specialize in custom granny flat designs, which makes us an excellent option for building unique granny flats, according to your location and budget. In addition, our team will add the right amenities and features to your new property to ensure it is comfortable for your family or tenants.

Our portfolio includes building over 400 granny flats according to our clients’ requirements. Contact us today to learn more about how the design, features, and cost of a 2-storey granny flat add more value to your property.


What is a Granny Flat?


A granny flat is a valuable addition for families who want their parents, grandparents, or even children to live close by without disturbing their privacy. If you are curious to know more about granny flats and why they are taking the Australian real estate industry by storm, keep reading.

Let’s find out more about this unique type of property.

What are Granny Flats? 

The concept of granny flats is not just emerging in Australia, but it is also soaring in popularity worldwide. 

A granny flat is an additional home on your property, not your primary residence. We refer to these structures as ‘granny flats’ because initially they were created to keep close and care for elderly parents. A granny flat is also referred to as a secondary dwelling which is more accurately descriptive of its modern versatility of uses.

For designing a secondary residence as a complete residential unit, it should have a kitchen, a bathroom, and other amenities. Generally, a backyard and parking spaces are also features that should be considered when designing a granny flat. The maximum size of your secondary dwelling can be 60 square meters.

A granny flat will increase the value of a home by providing more living space with amenities. If the owner chooses to rent it out to tenants, it can become an additional source of income. The design, size, and construction level determine the rent you can earn from your granny flat.

Homeowners often want to construct granny flats Sydney and use them as a professional or personal studio away from home. However you can in addition to a granny flat you can also build a 35 square meter studio at the same time which can be used for a home office or some other type of workspace, man cave, she shed etc with a kitchenette and bathroom however this studio cannot be rented out like the granny flat can as it is not a dwelling, just space for the primary dwelling to use.

Why are Granny Flats Becoming Popular?

Building a granny flat doesn’t mean you have to buy a brand-new house. Instead, you can contact granny flats builders Sydney to build a beautiful and functional granny flat. 

Australian homeowners can live in these flats or rent them out to earn rental income. One of the most common reasons why granny flats are so popular is that it allows property investing opportunities to a larger number of people. As it can be done on your private residence 

Of course, several factors contribute to the popularity of granny flats. Let’s look at these factors.

Low-Cost Investment

Granny flat costs are significantly lower than buying an whole new property. Generally you will not pay much more for a property which has room to build a granny flat or not so its like buying 1 property, but then for approximately $130,000 you turn it into separate rental properties.  

Rental Income

Many people prefer to rent out their granny apartments to boost their income. That allows them to contribute to their savings account and repay their mortgage faster. New granny flats generally provide a weekly income of $350 – $600 depending on the Sydney suburb and finishes of the granny flat. Hence, homeowners can earn a rental income between $18,000 and $31,000/year.

Connecting Family Members

Different granny flat plans allow families to live on the same property without living under the same roof. That way family members can maintain their privacy while being available for each other whenever one of them needs assistance. Granny flats are ideal for families with grown-up children who can’t afford to move out. These flats are also valuable for homeowners who want to offer housing for their aging parents/grandparents.

Low-Cost Housing Alternatives

Young individuals relocating to Sydney seeking better employment opportunities usually look for affordable housing options. They can’t afford to pay exorbitant rental costs due to financial constraints. As real estate prices in Australia continue to rise, affordable housing options are becoming scarce. Since granny flats are inexpensive, the younger generation of entrepreneurs or students prefers these dwellings.

Increased Property Worth

Granny flats increase the overall value of a home. That’s because your home has not one but two usable dwellings. Consequently, that adds to the price tag of a home. Not just that, a granny flat is also beneficial for prospective buyers because they can use it as a rental property, which allows them to offset the purchase expense.

There is sufficient research to conclude that granny flats can boost your property’s value by up to 30%. In addition, many properties in NSW cities like Newcastle and Sydney have additional space for a granny flat. Contact Smart Choice Granny Flats if you want to utilize your property’s extra space.

How to Get the Most out of Your Granny Flat Investment

You don’t have to be a seasoned investor to reap the benefits of building a granny apartment on your property. All it takes is a little planning and the right granny flat builders who can increase the value of your granny flat.

Here are some tips to help you earn the maximum ROI on your granny flat investment.

Choose an Appropriate Design

Constructing a granny flat is an affordable way to add more value to your property. Ensure the design fits the space where you want to build your granny flat. And place entry doors and windows in locations which provide the best functionality and privacy for both dwellings.

Consider factors like setbacks, shape, slope, and sewer lines. Speaking to a professional granny flat builder is the easiest way to ensure these items factored in correctly into the planning of the design. Choosing an appropriate granny flat floor plan will help you use what you have to avoid the unnecessary remodelling of your flat in the future.

Comply with the Local Laws

Homeowners must notify their local council when they build a granny flat on their property. That’s because the local council needs to ensure new structures are inline with their plans for the local community. It’s essential because the regulations governing granny flats vary in different states. However CDC Approval with a private certifier is the quickest way to get approval. 

In some parts of the country, renting your granny flat to anyone other than a family member is unlawful. Each state has its own set of rules governing the dimensions and location on the property.

You can also contact us to determine whether you can build the granny flat you are planning to build.

Collaborate with a Reputable Builder

The Sydney granny flat builders you work with will significantly impact your investment’s success. That is why hiring a reliable builder for building a granny flat is critical.

Professional builders follow the timeline, stay within the agreed-upon budget, and produce a quality product. Check out the best granny flat builders Sydney reviews before you choose a builder. 

Focus on Functionality

Your granny flat’s functionality is even more important than its appearance. After all, if you plan on using it as a rental property, your potential tenants will focus on its features first. That’s why most people construct an open plan two-bedroom granny flat as they offer the most comfortable living experience and can cater for a large range of different types of occupants. 

You don’t have to spend a fortune equipping your granny flat with the latest fixtures and features. Just make sure your granny flat can offer a mix of luxury, convenience, and privacy to the residents or tenants. Check out our granny flat showroom to find valuable features to add to your dwelling.

Smart Choice Granny Flats

Now you know what a granny flat is and how profitable it can be to invest in this type of construction. Not only do granny flats keep families together.

Smart Choice Granny Flats ranks among the best granny flat builders in Sydney. Our team specializes in building custom-designed granny flats that fit your needs and budget. We have been in the granny flat building industry since 2012, and our portfolio features more than 600 granny flats. Contact a helpful Granny Flat Expert today who will happily help you decide on the best design and features for your new construction.

The contemporary granny flat should have an aesthetic appearance and a comfortable feel. The granny flats that Smart Choice Granny Flats builds are designed to become someone’s home, likely for a long time. Hence, we ensure that all our construction projects are finished to the greatest standards and that our granny flat designs appear beautiful and have the atmosphere of a real home.

We take great pride in designing and building unique granny flats for our clients. Each of our designs are highly customizable, which means there is always a design ready for every type of budget and space. Please look at some of our granny flats that we built, Contact us today, and one of our representatives will address all your queries and concerns. Our team treats our clients like friends and focuses on their needs to deliver excellent results within their budget and time constraints.

How Much to Build a Granny Flat


Building a granny flat is a fabulous idea, whether you want to make room for tenants, family members, or caretakers. A granny flat may be the simplest and least expensive method to create additional living space within your property.

This guide will highlight the different price ranges you must know when building a granny flat.

How Much Does It Cost to Construct a Granny Flat?

Unfortunately, many people who search for this query online need the right quotes. For example, some granny flat builders may promise to build your granny flat for cheaper than the reputable builders. However, when we look at the amenities and luxuries required to make a granny flat comfortable, functional and built with quality the granny flat price for a 60sqm granny flat is around $130,000.

Smart Choice Granny Flats, often come across customers with unrealistic budget expectations. So, our team provides them with an accurate estimate of their granny flat project according to the features and design they want to include. Did you know that we provide free online quotes? It only takes 1 minute, or we also do free site visits/assessments.

Building a granny flat means you should expect a budget of $110,000 to $160,000 depending on your properties and your unique needs. This price includes everything; design, approval, earthworks right through to hand over of keys. You can expect a comfortable and welcoming home within this budget.

Although companies selling granny flat kit homes promote these solutions as cheaper alternatives, beware of the price they quote. Many times, these solutions do not include the additional installation costs. Unfortunately, that means you may have to spend much more than you initially thought when choosing kit homes.

Your granny flat cost also depends on the number of rooms and storeys and the type of fixtures you want to add to your granny flat.

Cost of Different Types of Granny Flats

What is the Cost of a Granny Flat with Three Bedrooms?

Considering all the factors, building a three-bedroom granny flat in Sydney requires you to pay about $2500 more than the 2 bedroom granny flat, not much is it? Well that is because granny flats have a maximum size of 60 square meters so the 2 bedroom and 3 bedroom granny flats are both the same size, only a few extra internal walls, a wardrobe and a door. Most people still build 2 bedrooms because they are more functional, 3 bedrooms get a little cramped.

What is the Cost of a Granny Flat with One Bedroom?

Building a one-bedroom granny flat in Sydney can be built under $100,000. Quite a saving, the reason being is you can make a 1 bedroom quite smaller while still remaining comfortable and functional. Or you could even build a studio style granny flat. The savings you make on construction often don’t outweigh the reduced rental income. But a good option if room in your backyard is limited 

What is the Cost of a Granny Flat with Two Bedrooms?

To construct a 60 square meter two-bed granny flat in Sydney, you will spend about $130,000 plus any extras you may want or need.

What is the Cost of Building a Two-Storey Granny Flat?

These units are expensive, and the construction costs may climb up to $40,000 more than their single storey equivalent.

Factors that Influence the Cost of Granny Flats  


This one significantly contributes to your granny flat’s overall cost. The type of granny flat floor plans you choose impacts the final price tag of your granny flat. For instance, do you want to add a garage, an alfresco or brickwork? Do you wish to build a home office within your granny flat?

Collaborating with the best granny flat builders in Sydney will help you choose the best design according to your site and budget. At Smart Choices Granny Flats, we have stunning granny flat display homes to help you choose the best one for your project. Our team will help you select the most functional design for your granny flat and recommend the appropriate materials so you can become the proud owner of a fantastic granny flat while staying under budget.

Site Costs

You must spend more if the project involves hitting rock during excavations, the soils are contaminated or unstable, you require drop edges or demolition of structures to make space for the granny flat. In addition, if your property is in a flood-prone area or a bushfire affected area, the building costs can increase because you may need to build higher off the ground or use special fire resistant materials.

Other site preparation costs may include removing trees, fixing broken existing stormwater drainage or upgrading outdated electrical work on the existing dwelling.

The prices mentioned earlier in the blog include the fee for the granny flat plan, survey, engineering and CDC approvals. DA approval applications will cost more depending on what is involved with your specific local council.

How to Lower the Cost of Building a Granny Flat?

Rising material costs and unforeseen site expenses can sometimes make you go over your budget.

Smart Choice Granny Flats are always looking for the most creative and functional designs which provide all amenities without spending a fortune. Here are a few tips from our expert team that can help you maximise your granny flat investment by reducing building costs.

Use the flattest area of your property to build a granny flat. That will help you avoid additional costs on drop edge beams and retaining walls.

Keep room for just one bathroom in your granny flat plan. Bathrooms are often the most expensive parts of your granny flat and adding an extra bathroom will add between $3000 – $6000 depending on the size and level of finish you want.

If you have budget constraints, stick to a single-storey granny flat. Avoid opting for split-level and loft-style designs. That’s because the more the require more work and materials to complete.

How to Choose the Best Granny Flat Builders in Sydney?

Choosing the right contractor or construction company for your granny flat will help you achieve the perfect balance of luxuries and amenities in your new construction. If you don’t choose a reliable Sydney granny flat builder for your granny flat in Sydney, many things can go wrong from the planning stage to the actual building process.

Consider what you must look for in a granny flat builder Sydney.

Maintains Transparent Communication

One of the most crucial aspects of a reliable granny flat builder Sydney is their willingness to honestly discuss what you want out of your granny flat. That will also be evident from their direct approach and professional demeanour. Therefore, choose the best granny flat builders Sydney that offers honest and transparent communication so you can discuss all costs and design elements in advance so you’re not left with surprises later.

Offers A Wide Range of Design Options

Always be wary of the granny flat builders that only build their designs and not offer customisation. Such granny flat builders may provide affordable solutions, but their designs may not suit your preferences. Of course, you can always request to view their portfolio before choosing a plan that best fits your needs and budget.

Contact Smart Choice Granny Flats to discuss the best ways to build your granny flat while staying within your budget.

We have designed and built single-storey and two-storey granny flats for over a decade. Check out a variety of options at our granny flat display homes Sydney

We offer cozy and functional designs that fits any backyard, for example the ‘Modern Brick Design.’ This design is ideal for a cost effective brick granny flat option that also looks simplistic and beautiful.

Our Hampton Design is another attractive choice for building a granny house for aging parents or in-laws. This flat’s design replicates the feel and look of a holiday home by the beach.

Why Choose Smart Choice?

Since we appreciate how precious your time is, our team makes it easier for you to choose from many attractive designs under one roof or we can custom design a granny flat just for you at no extra cost. We only use the highest-quality materials for building a granny flat. Furthermore, we carefully consider all the critical elements in a sleek and aesthetic design for creating a comfortable and practical granny flat.

Smart Choice Granny Flats offer a streamlined construction process for your convenience. Visit one of our lovely granny flat display home in Sydney at our granny flat showroom Sydney. You can schedule an appointment by simply filling out your information on the contact us page. One of our staff members will get in touch with you.

You can also see 3D virtual tours of some of our completed projects to see how functional and beautiful our granny flats look. A virtual tour is an excellent opportunity to explore different granny flats layouts without leaving home. You can zoom in on features to take screenshots of anything you want to include in your granny flat design. We will discuss all details to calculate and an estimate within your budget.

So, are you ready to build the mini home of your dreams? Our granny flat showroom in Sydney offers an overview of the the full range of fixtures and finishes we offer, but more importantly we showcase how good our standard level of finishes is in our display so you can see what you get standard. What makes us stand out is that we have something for everyone. Contact Smart Choice Granny Flats today and let us build you a beautiful granny flat.



How Much is a Granny Flat?


Granny Flats in Sydney are the latest home improvement trend in Australia and around the world. Also known as Secondary Dwellings they are small buildings built on a home’s property. They can be attached to the home or they can be a separate unit. 

These flats are so-called because they are an ideal place to house a grandma or in-law. They can also be used for nannies, renters, or as additional family space. They considerably increase the value of the home. 

If you are thinking of adding a granny flat to your home, it’s likely you are wondering about the granny flat cost. This article will break down the pricing so you are prepared for your investment. 

What Does a Granny Flat Cost?

Granny flat cost varies depending on several factors including:

  • Size
  • The types of materials used
  • The condition of your land
  • Council and permit fees
  • Plumbing and electrical expenses
  • Extra features such as fences

While most full 60sqm granny flat costs will fall in the range of $120,000 – $140,000, the sky’s the limit with options for customisation and adding features so the cost can go high if you want unique features and finishes.

Granny Flat Cost By Bedroom

Most granny flats in Sydney have 2 bedrooms, the size being 60 square meters (the maximum allowed size). However, there are granny flats that feature 3 bedrooms or just 1. Here’s an idea of what you can expect to pay considering the number of bedrooms your granny flat will be equipped with:

  • Single Bedroom granny flat: A single bedroom unit will typically measure between 35 and 45 square meters and can cost approximately $10,000 less than the full 60 square meter version.
  • Double Bedroom granny flat: A double bedroom unit will measure around 60 square meters and at the time of writing this costs around $130,000. See our instant quote section for current pricing
  • Three-Bedroom granny flat: A three-bedroom unit will be 60 square meters also, however configured more compact to fit the 3rd bedroom, It only costs $1000 more than then the 2 bedroom version.
  • Granny Flat Kits: You may think you can reduce granny flat cost if you opt for a granny flat kit. These are pre-designed homes flat-packed into a kit you can put together yourself or assembled by contractors.

The fact that they are pre-constructed would make you think you save money. However costs in running large factories to manufacture these kits, complicated logistics onsite trying to get the kits out the back of homes is often impossible, at best very difficult. That is why most granny flats are built onsite where the materials come in smaller sections and can easily be moved into the rear yard and assembled in position.

Also, granny flat kits are limiting and any modifications you want in your design will cost extra. They are also generally installed on piers which are inferior to concrete slab construction which is more durable and requires less maintenance in the long term. 

The kits look cheaper however much of the costly works are not included like earthworks and connection of services.

You can potentially save money on a granny flat by converting an existing structure such as a garage, if you do much of the work yourself. 

Is a Granny Flat a Good Investment?

We’ve established that granny flat cost is not exactly cheap. But does it bring in a high return on investment? According to statistics, granny flats can boost home values by 30% and add around 27% to rental income. That is an extremely good return.

Here are some other reasons why granny flats are good investments. 

  • Granny flats are cheaper than most standalone investment properties.
  • They give investors extra claimables on depreciation which spells out bigger tax returns. 
  • They can help build your portfolio by increasing your capital value and rental income. As an investor, this will give you a better chance of being approved for future loans. 
  • There’s a strong demand for granny flats among students, young couples, singles, and retirees. 

However, granny flats don’t always pay off. They could end up being a bad investment if any of the following situations occur. 

  • The cost of construction goes over budget or is built incorrectly, always build with a reputable builder.
  • Some banks do not consider granny flats an asset to the property when it is built on piers as they see that the structure can be portable, not a permanent fixture. Slab construction is better for bank valuations

How to Budget for a Granny Flat

You will be in better shape for affording your granny flat cost if you work out a budget in advance. Here are the steps you will want to take. 

Figure Out How Much You Want to Spend: Figure out what you can afford and compare it against what you are looking for in a granny flat in terms of size, amenities, etc. You should also think about how much work will go into getting the unit up and running considering earthworks, installation, plumbing, electrical systems, permits, and more. If you are taking out a loan, monthly payments and interest rates will factor in. 

Get quotes: Talk to different contractors to get quotes. This will give you a realistic idea of how much you will be spending and what you can afford. Choose a company that offers the best value for the money, cheaper is not always the best, comparing the quality of the inclusions and finishes and reputation is important to ensure you don’t face costly mistakes or delayed build times which can result in large losses in rental income or mortgage repayments.

Build in Some Wiggle Room: Unfortunately, some construction projects can go over budget due to unforeseen site issues. For example, rock, contaminated soils, unstable soils. It’s wise to plan for these overages so you are prepared to continue construction. Speak to a professional before starting so you know what to account for.

Plan Carefully: The more you plan in advance, the fewer unforeseen expenses you will encounter. Talk to your contractors and designers so they have a clear idea of what you have in mind. Find out what’s possible and not possible so you can move forward with minimal difficulty. 

Track Your Spending: Keep an eye on your budget  during design and material selections, pull back on overspending early before you go over budget. 

A granny flat can be a great investment. It is a convenient option if you want employees or relatives close by, and it increases the value of your property. Now that you know the granny flat cost, you can decide if you would like to add one to your residence. What decision will you be making?

How Much Does it Cost to Design a Granny Flat?

The standard cost for designing and getting CDC approval on a Granny Flat is between $7,000-$12,000 depending on the builder or design company. Granny flat designs can vary in cost to construct, but generally, the cost to design remains the same.

How Much Does it Cost to Build a One-Bedroom Granny Flat?

Investing in a one-bedroom granny flat is a viable option for first-time investors. It can be your ideal space for extended family members, guests, and elders.

Standard one-bedroom Granny Flat, at 60m2, can cost around $127,000 at the time of writing this article. This Granny flat price includes the design, approval, and construction.

How Much Does it Cost to Build a Two-Bedroom Granny Flat?

A two-bedroom Granny Flat will be a comfortable place for your parents or grandparents. They also provide a comfortable living place for your visitors while in town. Saving you from having to pay for lodging or having them stay in your living room.

For a typical 60sqm two-bedroom granny flat plan cost is around $128,000 including design, approval, and build at the time of writing this article. However, the price will vary depending on which builder you choose.

If you are about to invest in Granny Flats, the drastically fluctuating price range on the internet must be making you question what is the true cost. Some builders in Sydney start their 60sqm Granny Flat cost as low as $110,000 while others have a $160,000 starting price. Be cautious of the lowest quote as the cheapest does not necessarily represent the best value and in many cases, it can cost you more in the long run.

Deciding on a Granny Flat Builder

When deciding on a granny flat builder. It is equally if not more important to assess their reputation and experience in the industry. While you may be able to find a cheaper quote from a builder with less experience or without a reliable reputation there are inherent risks that come with this which can result in you paying much more overall.

  • Newer companies often have unreliable trades which produce lower quality work because they don’t have a reliable trade base yet, this poor quality results in slower construction times, lower rents, and costly remedial works as the granny flat require more maintenance.
  • Newer companies often lack the business experience to manage the financial aspects of the business properly. Which increases the risk of them making critical mistakes resulting in the business closing down. Resulting in you paying for another builder to finish your project. Not to mention all the lost time in resolving such issues
  • Companies with little known reputation or an average to bad reputation are extremely high risk. A business failing to keep its customers happy and deliver a good service is a sign that the company is poorly run and likely not capable of building your granny flat well. Is it really worth the stress and potentially damaging financial strain of building with the wrong builder?

Including council and design fees, Granny Flats can range between $120,000 and $170,000. Custom Granny flat floor plans cost no extra cost with Smart Choice Granny Flats.

There is no quick answer to predict the estimated price of a Granny Flat since various factors influence the price. The cost of the Granny Flat depends on your property’s site conditions. Granny flat design, and the Granny flat builder you choose.

This guide will clear the confusion by shedding light on the matter.


For an enjoyable building experience with a quality finished product, with quality inclusions and materials pick a granny flat builder in Sydney that has been building granny flats for a long time and has a good reputation. The best price is one where you get exactly what you want for a good price. Looking for the cheapest price will likely lead to a poor choice. Make a Smart Choice by picking a company like Smart Choice Granny Flats.

Does a Granny Flat Add Value To a Property?

The direct answer is yes. If you have excess space in your property, the best way to get the most out of it is by adding a Granny Flat. A Granny Flat adds value to a property by making 2 separate dwellings on the property. Means both dwellings can be rented separately which holds great value as granny flats rent for a lot. An impressive return on investment or offer extra living space and amenities to expand the main dwellings usability.

Nevertheless, the design, level of construction, size, and placement of a granny flat, like any development, will determine how much it will increase the value of a property.

Consulting with a reliable Granny flat builder is crucial in evaluating your property value. If you are constructing a single-storey Granny Flat, the cost will be less compared to a double-storey Granny Flat, but the value increase to the property will be the same.

30% Boost Property Granny Flat Value:

The value a Granny Flat adds to your property depends on your property type, size, flat design, and the style you wish to construct the flat. The Archistar Granny Flat Report shows that attentively designed Granny flat floor plans add up to 30% to a property value.

It will help if you are cautious while constructing a Granny Flat. Of course, you don’t want a flat to dominate your main living house and remove all the green space you have.

Besides, have a look at the NSW requirement list. According to the NSW Planning Department, the local government and councils can approve a Granny Flat application within 20 days. However, since the state government shortened the procedure, Granny flat plans in NSW Australia can be approved by a private certifier, speeding up the process even further.

Each district/council area has different regulations for Granny Flats. You might find that a new granny flat is not possible or legal on your property via DA approval. Perhaps yes for CDC approval. Therefore, the first thing to do if some one is interested in adding a granny flat to your property is to research the rules set out by own local municipality. Leave it to a professional like Smart Choice Granny Flats to help advise you of your options.

Rental Returns:

If you have no plans for using the Granny Flat for your living space, rent it out to get the Granny flat cost back that was spent on construction. Those who can’t afford to rent a larger home are willing to pay up to $800 to rent a granny flat in many areas around Sydney.

With time, you should learn property value-adding strategies. Adding a Granny Flat is convenient, time-saving, and fantastic for raising your capital value and rental revenue. If unsure about the design, you can visit our Granny flat showroom and or speak with our in-house draftsman to get ideas.

Top Reasons to Invest in a Granny Flat

Have you ever considered making an extension to your home for extra space in a smart granny flat? What about investing in a granny flat?

A granny flat not only makes your property spacious and caters to social demands but also enhances the property’s monetary value.
With an expert granny flat builder, you can get a perfectly customized, stylish, and eye-catching living space that is equally cost-effective. Let’s explore how you can benefit by investing in a granny flat.


Why Invest in a Granny Flat?


A granny flat is similar to traditional homes, specifically designed to address the needs of elderly persons. They hold the components and structure of a typical, livable house with tailored facilities to offer ease and comfort to your elderly loved one. Mainly, they incorporate 1 or 2 bedrooms, a small living room, a dining room, a full-sized kitchen, a bathroom, and small laundry.

Following are a few potential reasons to build a granny flat on your current property


  • Keeping Your Elderly Ones Together:

If you are a family person and do not want your elderly family members to be far from you, you will surely love the concept of a granny flat. It allows them to live closer to you and enjoy the slow-paced lifestyle. Some fantastic benefits of a granny flat include:

  • No need for expensive elderly care facilities:

As a person ages, he/she needs extra care due to their weak body and declining health. In such cases, older people shift to nursing homes or care facilities. Granny flat price to build is less overall compared to nursing home expenses. Thus, you can avoid this unnecessary expense and pay for cheap home care services, and your loved one will also be under your observation. You can monitor their progress 24 hours a day.

  • Avoid holiday traveling expenses:

A granny flat lets your loved ones celebrate special occasions with you, and you will no longer need to spend a lot of time and money on traveling from one place to another. You can keep your elderly loved ones near you, and they will no longer miss any of the special occasions in our busy lives

  • Children can enjoy grandparents company:

A granny flat gives children a chance to spend time with their grandparents. The intergenerational knowledge they get from them helps in developing, building, and polishing their personality overall. Also, grandparents tend to become more lively, active, and cheerful with children around them. Grandparents can make great babysitters also.

Increases property value


With a granny flat, you can attract potential buyers whenever you plan to sell your property. The banks or potential buyers cannot deny the value of the additional dwelling on your property, the property price will generally increase more than the granny flat cost to build.


Maximizes Income


We have Granny flat plans of some beautiful and functional granny flats which can help you earn a solid long-term rental income. You can even rent it out for short-stay vacation purposes. It is an excellent alternative for people residing in seasonally populated destinations. This extra income can help you pay your mortgage faster or even enjoy some luxuries you have only dreamt about.


Multi-Purpose House


We layout granny flat floor plans in variety of different ways to suit each individual needs. With more bedrooms, and living areas you can make it a guest house for your visitors. This not only provides them comfort but also more privacy. You can also use a granny flat as an office space if you are working remotely and want to avoid any disturbances. Likewise, granny flats are also suitable for older children craving separate space and more independence.


Useful For Downsizing Plans


As you approach retirement age, life situations do not remain the same. Your grownup children may move out, and your spacious house is no longer fully used. In such events, downsizing to a granny flat and renting out your main home is a brilliant idea. This ensures reliable passive income while making good use of the space in the yard. Similarly, moving into a granny flat is a viable option if you are into traveling a lot.


Creative Renovation of your Property


When you design a new building, you get the opportunity to get creative with its style, architecture, and features. Consequently, with contemporary granny flat designs, you can create a visual masterpiece while uniquely expressing your existing space. With a professional granny flat builder, you can install robust security systems and smart technologies and choose other value-added items for your granny flat, which your main house is missing.


Final Thoughts


If you want to get more creative and are looking for ways to maximize the utilization of your space, a granny flat is undoubtedly the best choice.

In Australia, an increasing trend of building a granny flat has been observed due to its monetary and social benefits. So, if you are looking for a granny flat builder in Sydney, you can find the best one, by going through different granny flat builder reviews. Alternatively, Smart Choice Granny Flats have expertise in establishing a customized, top-notch granny flat that is just according to your requirements.