Tips For Building A Granny Flat

Multi-generational living is becoming increasingly popular. With the cost of living rising steeply combined with an ageing population, bringing elderly parents into the home can have a multitude of benefits. We have sometimes joked about converting the outbuilding at the bottom of our garden! Whether you’re considering building a granny flat for a relative or generating rental income, there are many factors to consider.

What Is A Granny Flat?

A granny flat is a separate living space that is constructed on the same property as a single-family home. It can be its own building or attached to the main house and usually contains a bedroom, bathroom, living area, and kitchen.

The granny flat is named after its traditional use as a living space for aging parents or grandparents, but it can be used for various purposes.

In Australia, the cost to build a granny flat typically ranges from $50,000 to $125,000. This cost is determined by the size of the granny flat, the features included, and adherence to local building codes. Other factors that can affect the cost include the quality of construction materials used and any additional amenities added.

Advantages Of Building A Granny Flat

The benefits of building a granny flat are numerous. Here are a few:


Granny flats are generally more affordable to build than an extension or an entirely new home, making them a cost-effective solution for families looking to accommodate an elderly relative or generate rental income. After all, the only thing more expensive than a home is two homes!

With granny flats, you can rent out the extra space to generate income or use it to house family members.


A granny flat is a living space that offers flexible arrangements for both owners and tenants. It provides separate living quarters for privacy and independence without the difficulties or emotional hurdles of moving to a new home. This makes it an attractive choice for individuals or families who want to live together but also want their own space.


Granny flats can be used for a variety of purposes, including as a guest house, home office, art studio, or rental income property. It’s up to you to decide how you want to use the space and make it work for your needs.

If you’re looking to generate rental income, granny flats can provide a source of passive income while also adding value to your property. Just make sure you research the rental laws in your state before taking on renters.

Step-by-Step Guidelines For Building A Granny Flat

The process of building a granny flat will depend on local regulations and codes, but there are certain steps that must be taken in order to get the project off the ground:

Research And Select Reliable And Experienced Builders

Before hiring a builder, do your research and ask for recommendations from friends and family. Review online reviews and check the builder’s credentials, licenses, and insurance. Once you have a list of potential builders, ask for a quote and compare the prices and services offered.

Determine Building Requirements

There are different building requirements for granny flats depending on your state or territory, so it’s important to do your research. Consider factors such as the size of the granny flat, design and layout, and the location of your property.

Obtain Council Approval

Before starting construction, you’ll need to obtain council approval. This can be a complicated process, so it’s best to seek professional advice from your builder or a town planner. They can help you prepare the necessary documentation and guide you through the approval process.

Designing A Granny Flat

When designing a granny flat, several factors must be considered to ensure both functionality and comfort for inhabitants.


The size of the granny flat will depend on your needs and budget. A smaller flat may be more affordable to build, but a larger granny flat will provide more space and flexibility.

Floor Plan

When designing your granny flat, consider the floor plan. A well-designed floor plan can provide a functional living space for inhabitants and increase the value of your property. Consider factors such as natural light, storage space, and privacy.


Choose fixtures that are functional and durable. Don’t skimp on quality, as the fixtures must withstand daily use. Quality fixtures will also add value to your property, making it a wise investment.

Decorating And Furnishing A Granny Flat

Decorating and furnishing a granny flat is an exciting process. Here are a few tips to ensure the space is aesthetic and functional.

Choose Neutral Colours

Neutral colours are a great choice for walls, floors, and curtains. They provide a calm and relaxing environment and are easy to match with a variety of furniture and decor.

Invest In Quality Furniture

Investing in quality furniture will pay off in the long run. High-quality furniture will last longer and be more comfortable for inhabitants.

Prioritise Storage

Storage is always a crucial factor in any living space. Maximize storage space by adding built-in cupboards, shelves, and drawers to keep clutter at bay.


Building a granny flat is a cost-effective solution that can provide versatility, rental income, and added value to your property. Following these tips and guidelines ensures the construction process runs smoothly and the granny flat is functional and aesthetically pleasing.

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