5 Common Misunderstanding About Granny Flats

In recent years there has been an increase in popularity of sydney and melbourne granny flat, stemming from strong housing price growth and the need for affordable housing.

There is some misunderstanding about granny flats in the marketplace and we decided we would tackle some of the top myths about granny flats we often get asked.

1. It takes a long time to get granny flat approval

NSW:

In 2009 the NSW Government introduced the Affordable Housing SEPP to increase the supply and availability of affordable rental housing. Provided you meet the minimum criteria for a granny flat, it is actually possible to get a granny flat approved via a Complying Development Certificate (CDC) in as little as 10 days from submission to a private certifier.

Find out about <Permit Requirements For Granny Flat In NSW>

VIC：

From 1st/12/2023 to 1st/12/2033, a small second home up to 60sqm, also known as a granny flat, secondary dwelling or an accessory dwelling unit, no longer requires a planning permit in most cases where there are no flooding, environmental or other special planning controls.

Find out about <Permit Requirements For Granny Flat In VIC>

2. The size of the granny flat doesn’t matter

NSW:

Maximum 60sqm under Complying Development, larger sizes possible with Development Application. Carports, patios (and often attached garages in Newcastle/Central Coast) don't count towards floor space.

VIC：

Under the new rules, dwelling garden units will not require a planning permit if they are under 60sqm.

3. You have to subdivide your property to build a granny flat

A granny flat is considered to be a secondary dwelling and needs to have a primary dwelling on the same block. If you subdivide your property you would need to build a primary dwelling prior to building a secondary dwelling (granny flat).

4. You can't use a granny flat as an additional rental property

In NSW and VIC, you are legally allowed to rent out your granny flat now. Building a granny flat for investment purposes is an excellent way to maximise your property and earn an income. There are many more benefits to using a granny flat as an investment asset.

5. A granny flat is just a cheap, low quality kit home

In the past, a granny flat has been perceived as a basic shed out the back and whilst there are multiple cheap kit style granny flats on the market, that is not your only option. You can build an architecturally designed granny flat, at Money Spaces we have multiple designs to suit every block.

Now that we have exposed 5 granny flat myths, we hope this information is helpful for you to determine if a granny flat is the right choice for you.