How to Calculate the Cost of a Granny Flat
$16,000 to build a granny flat? Don’t be fooled!
While granny flats are less expensive to build than a traditional house, they aren’t dirt cheap either. Some companies offer barebones promotions that don’t include all the basic amenities to pique your interest.
But let’s be realistic. The table below shows the approximate price you should expect to pay when all is said and done.
|
Granny Flat Style |
|
|
One Bedroom |
$150,000 - $200,000 |
|
Two Bedroom |
$250,000 - $300,000 |
|
Three Bedroom |
$300,000 - $350,000 |
|
Two Storey |
$280,000 - $320,000 |
Let’s take a closer look.
What Is a Granny Flat and Why Is it Cheaper?
A granny flat is a prefabricated building option that arrives at your property in pieces. It’s relatively quick to put the pieces together and construct an independent living space on your property.
In the beginning, people often used them to house elderly relatives so they can be close but still live independently, hence the name. Now homeowners use them for everything from a home office or hobby space to renting it out on Airbnb!
The Cost to Build a Granny Flat
The cheapest granny flat designs come as either a flat pack or a kit. The flat pack brings all the pieces together in a “flat” bundle. You will have prepared the foundation as well as the electrical and water connections. Then, you put the pieces together and build!
A kit is similar but the pieces come partially assembled. You still have to prepare the site correctly, but construction is much faster.
What if you don’t like any of the premade layouts? Or you want a specific window or door placement? You can do this with a custom-built granny flat. You’ll spend a few thousand dollars more, but you’ll get exactly what you want.
Don’t forget to include the various other expenses that will be involved. For example, council fees, surveyor reports, construction labour, and tradesmen costs.
Do You Need Permits from the Local Council?
The allowed uses and building regulations vary depending on your location. Be sure to research what is allowed in your area before breaking ground. There are also council fees involved, which can run up to several thousand dollars depending on your council.
Does a Granny Flat Raise Home Value?
In most cases, yes. You’re adding versatile, usable living space to your property, which is a sought-after trait that often pushes up home value. According to a CoreLogic survey, it can push it up as much as 30%!
Enjoy Your New Living Space
A granny flat is a cost-effective option for adding usable living space to your property. For less than the cost of a traditionally-built building, you can get a separate living space with its own private entrance and outdoor space.
When offering daily rentals, the return on your investment racks up quickly!
Daily Bulletin
