If you desire to add more living space to your home, an independent living area, or a private office, a granny flat might be the right fit.
Granny flats are flexible and affordable, offering an excellent lifestyle option. With rental apps such as Airbnb, further Australians are embracing granny flats.
Let’s break down the costs of a granny flat to help you budget for the type you prefer. This table highlights estimates of what to expect from your quote.
|Flat style||Estimated Price Range|
|Three Bedroom granny flat||$350,000 – $300,000|
|Two Bedroom flat||$300,000 – $250,000|
|One Bedroom||$200,000 – $150,000|
|Two Storeys||$320,000 – $280,000|
You may notice that the number of rooms increases, but the price difference is relatively small. This is because there are size limitations in Australia for granny flats. For instance, the permitted size for a two-bedroom granny flat is 60m2. It’s up to you to be creative with the space.
What Is The Meaning Of Granny Flat?
The flat of granny is a smaller independent dwelling space that occupies the same area as the primary house. Most people set up granny flats for the elderly, improving the family lifestyle while extending support to loved ones.
It’s also a fantastic opportunity for savvy homeowners to earn extra income.
Granny Flats: How Much Do They Cost?
Granny Flats come in different sizes and shapes, so the costs vary based on these factors. In Australia, such a flat generally costs between $350,000 and $150,000 to build.
Granny Flats Built From Scratch Versus Flat-packs Versus Kits
When setting up your granny flat, you can build the structure from the ground up or buy a pre-fabricated structure to make the process easier and faster.
Kit Granny Flat or Flat Pack Granny Flat
A kit or flat pack extra flat is a home with the major components pre-made at a factory. The package arrives in portable sections that you assemble into a complete house like a giant puzzle.
After assembling your unit, you’ll need to lay the foundation and connect power and water.
Custom-Built Granny Flats
You’ll construct the entire structure from scratch for a custom-built granny flat. It allows maximum customization and offers premium properties the highest ROI (Return on Investment).
Sizes and Price Ranges
▪ 1 Bedroom ($150,000 and $200,000)
The size of a one-bedroom granny flat ranges from 35m2 to 45m2. The price in Australia for such a self-contained flat is between $150,000 and $200,000.
▪ 2 Bedrooms ($250,000 to $300,000)
Two-bedroom granny flats balance convenience and comfort. These flats are spacious to accommodate two adults and a child or three adults. Such a granny flat ranges from $250,000 to $300,000.
▪ 3 Bedrooms ($300,000 to $350,000)
With between $300,000 and $350,000, you can set up a cozy, modern three-bedroom flat to suit your lifestyle. A three-bedroom granny flat offers the full advantages of a standard home while allowing the occupants privacy.
▪ 2-storey ($280,000 to $320,000)
A two-storey granny flat is ideal if your home has private rear access or an irregular-sized yard. You can anticipate costs ranging from $280,000 to $320,000.
Other Costs to Consider – Inclusions and Exclusions
Building a studio apartment has some extra costs that can affect your quote. For instance, if you live in a flood-prone area, you’ll need elevated joists and bearers, which are often expensive.
It’s essential to consider the following additional expenses:
- Design planning
- Building materials
- Surveyors report
- Council or private certifier
- Engineer’s advice and professional diagrams
- Labour, including professional plumbers, builders and electricians
Do I Need Council Approval to Build a Flat of Granny?
Most councils permit granny flats, but it depends on your land’s size and location. Ensure you confirm with your local council but be ready with elaborate drawings and fees of up to $20,000.
All granny flats must abide by Australian building standards and have an outdoor space and private entrance.
Will Flat of Granny Increase the Value of My Home?
The flat can increase your property’s value by up to 30%. You’ll collect the same rent as you would for a standard apartment, yet the building costs are significantly lower.
Granny flats are a great way to earn rental income while boosting property value. As housing shortages continue to rise, granny flats allow a simple, private, yet quality life.
There’s no better time to build a granny flat and enjoy the benefits.