A Breakdown of the Costs Associated with a Granny Flat


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Granny flats are increasingly becoming popular housing options in Australia, offering an affordable, functional, and versatile living solution for many homeowners. In this article, we will provide you with a detailed breakdown of the costs associated with building a granny flat.

Cost of Granny Flats by Type and Size

Type Size Price Range (AUD)
Custom-built 1 bedroom $150K-$200K
  2 bedroom $250K-$300K
  3 bedroom $300K-$350K
  2-storey $280K-$320K
Kits and Flat-Packs Various Models $100K-$200K


What is a Granny Flat?

A granny flat is a self-contained living space, typically built in the backyard of an existing property. It can be detached or attached to the main house and generally includes a bedroom, bathroom, kitchen, and living area. Granny flats are often used for housing elderly family members or providing extra income through rental opportunities.

What does it cost to build a granny flat?

There are various factors that influence the cost of building a granny flat, such as the choice between custom-built granny flats, kits, and flat packs. Custom-built granny flats are designed and constructed specifically for your property, offering a tailored solution to your needs. Kits and flat packs are pre-fabricated and come in a range of sizes and designs, providing a more affordable and time-efficient option.

Custom built granny flats vs kits vs flat packs

There are various options for constructing a granny flat, each with its own associated costs.

Custom-built granny flats are tailored to the homeowner’s specifications and preferences, offering the most flexibility in design and layout. While this option may be more expensive, it allows for a unique and personalised space.

Granny flat kits are pre-designed and partially assembled, making them a more cost-effective solution. These kits come in a variety of sizes and styles and can be easily installed by a contractor or even the homeowner in some cases. However, they may lack the customisation options of a fully custom-built granny flat.

Flat packs are the most affordable option, providing a basic structure that can be assembled on-site. While they offer the lowest cost, they also have the least customisation and may require additional work to make them comfortable and functional.

Other costs to consider

Aside from the base cost of the granny flat itself, there are other costs to consider, such as site preparation, landscaping, and utility connections. Some builders may include these costs in their overall price, while others may charge additional fees. Make sure to clarify what is included and excluded from the quote to avoid any surprises.

Do I need council approval to build a granny flat?

Council approval is generally required for building a granny flat in Australia. However, the specific regulations and requirements may vary depending on your local council. It is essential to consult with your local council and obtain the necessary permits before commencing construction.

Will a granny flat increase the value of my home?

Adding a granny flat to your property can potentially increase its value, as it provides an additional source of income and accommodates a growing family’s needs. However, the value-added will depend on factors such as the quality of the construction, the design, and the location of the property.

Building a granny flat can be a cost-effective solution to accommodate a growing family or generate extra income. By understanding the various costs associated with building a granny flat, you can make an informed decision on the best solution for your needs. For more information on granny flat costs, check out this comprehensive Granny Flat Solution guide.

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