One of our clients, for example, built a dual-style second dwelling on a grassy backyard. One side was rented out, while the other was used as his man cave and home office. Another client built a second dwelling for his father, who needed to downsize from the family home. The family home was rented out, and the rental income was shared between the father and son.

If you’re thinking of building a granny flat or second dwelling, it’s important to do your research first. The first step is to call your local city council to ask for guidelines on building a granny flat or second dwelling. They will be able to provide you with information on the zoning and building requirements for your area.

There are also a few online resources that you can use to help you get started. The Australian Government Sustainable Homes website is a good place to start, as it provides information on sustainable building practices and energy-efficient homes. The Brisbane City Planning Guidelines also have a helpful fact sheet on granny flats and you may need to find the equivalent state guidelines to start your research.

When it comes to designing your granny flat or second dwelling, there are a few things to keep in mind. First, you’ll need to decide on the size and layout of your dwelling. One clever build is the 5×4 Hayes Lane Project in Melbourne, which is a 3-level build on a small block of land 5 metres by 4 metres squared. It’s important to note that the size and layout of your granny flat or second dwelling will depend on your local council’s guidelines and building requirements.

Another bit of detail to consider is the potential rental yield of your granny flat or second dwelling. You can use online calculators, to help you estimate your borrowing capacity and potential rental income.

Granny flats are becoming increasingly popular among homeowners looking to maximise returns on their residential properties. These self-contained dwellings offer a great way to generate rental income, accommodate aging parents or adult children, or create extra space for guests. However, before you jump into building a granny flat, it’s important to understand the regulations that govern their construction and design.

Regulations for Building a Granny Flat

To build a granny flat, you must first ensure that your property is eligible. Granny flats can only be built on Residential Zone property and must be located on a single block with a primary dwelling. The block must be at least 450m² and the owner of the granny flat must also be the owner of the primary dwelling. Additionally, each residential property is limited to one granny flat, which cannot exceed 60m² of living space (although patios, verandas, or carports can be attached in addition to that allowance). Granny flats cannot exist on strata title, subdivided, or community title property, and cannot be built on unoccupied land or on a property used for commercial purposes.

Designing Your Granny Flat

Once you’ve confirmed that your property meets the regulations, it’s time to start thinking about the design of your granny flat. The best design will depend on your individual needs, but there are some key considerations to keep in mind. A well-designed granny flat should be comfortable, functional, and easy to maintain. It should also have clear, separate, and unobstructed pedestrian access to ensure safety and convenience for tenants. When it comes to the layout, it’s important to maximize space and prioritise privacy. This might mean including separate entrances, soundproofing, or private outdoor spaces.

Maximising Returns

Finally, if you’re building a granny flat with the intention of generating rental income, it’s important to think about how you can maximise your returns. One way to do this is by selecting affordable materials and finishes that will keep your construction costs low. Additionally, consider including features that will appeal to potential tenants, such as air conditioning, built-in storage, or outdoor spaces. It’s also a good idea to think about rental yield when designing your granny flat. This refers to the income generated by the property as a percentage of its overall value. By keeping rental yield in mind, you can ensure that your granny flat is generating as much income as possible.

To maximise your returns on your investment in building a granny flat, consider the following design tips:

• Utilise natural light to create an open and inviting space
• Consider installing sustainable and energy-efficient features, such as solar panels, to reduce utility costs and attract eco-conscious renters
• Use durable and low-maintenance materials, such as shipping containers or modular designs, to minimise upkeep costs
• Plan for storage solutions to maximise space and improve functionality
• Ensure the design meets council approval and consider hiring a professional architect or builder to ensure compliance with local regulations.

Refinancing Your Property

Finally, if you’re building a granny flat to generate rental income, you may want to consider refinancing your property. Refinancing involves replacing your existing mortgage with a new one that has better terms, such as a lower interest rate or longer repayment period. This can help to free up cash flow, making it easier to cover the cost of building your granny flat and generating rental income.

Remember, it’s important to speak with a credit adviser (mortgage broker) to determine if refinancing is the best option for your individual situation for the construction of a Granny Flat or secondary dwelling.