FAQ's

Frequently Asked Questions

  • What classifies as a granny flat?

    Granny flats are typically defined as “secondary dwellings”, which means that they’re built on the same lot of land as the main dwelling. Granny flats are also “self-contained dwellings”, meaning they have a separate entrance and their own bathroom, kitchen, bedroom, laundry and living space.


  • What are the rules and regulations that need to be considered?

    Over the years, housing affordability issues across Australia have prompted state and territory governments to introduce important measures to make affordable housing more accessible. This includes making it easier to build a granny flat in your backyard. In NSW, the governments all allow their residents to rent out a granny flat to generate extra income. 


    Before you invest in a granny flat, it’s essential to make sure your planned addition will be fully compliant with all the relevant laws. Check with your local council to find out what regulations apply in your area, but as a general rule your granny flat will need to:

    • Your property is zoned for residential use (check specific zoning requirements).
    • Your property is at least 450 square metres in size.
    • Be the only granny flat on the property.
    • Be owned by the same person that owns the primary dwelling.
    • Have a maximum living space of around 60 square metres (this figure varies and typically does not include outdoor living area or carport).
    • The granny flat has a separate entrance and unobstructed pedestrian access.

    Once you’re sure that your project will meet all the necessary requirements, you can apply for planning approval from your local council. Some properties are eligible for complying development certificates.


    You can find detailed information about granny flat regulations in NSW here.

  • Will a granny flat add value to my property?

    Families and professionals are seeking additional space from which to work from home, house growing families or earn additional passive income. There are a number of financial and functional benefits to building a granny flat and therefore we strongly believe that a granny flat will increase the value of your property. 


    In most cases a granny flat will significantly add to the value of your property. However, the quality of the build and the planning of the design must be taken into account to ensure it takes into account visual aesthetics, privacy, space maximisation and most importantly it adheres to regulations. 


  • Do I need council approval to build a granny flat?

    Each area of Sydney is different and the regulations are stipulated by the local council. In many cases you will need to apply for approval but in some areas you may not need council approval as long as you meet specific criteria. 

  • How can I finance granny flat construction?

    It’s wise to consider your investment financing options before you start.  Invest Plus Granny Flats has a range of payment options and we partner with expert mortgage brokers who can work with you to maximise your return on investment.


    Options could include:

    • Paying out of your own pocket – using your savings or a mortgage offset or redraw facility.
    • Refinancing your home loan; or
    • Applying for a new loan – contact our partners at SUM+. 
    • Interst free payment plan options with Invest Plus Granny Flats.

    The team at Invest Plus Granny Flats can assist you the ideal option for your personal situation.


  • What is the best design for a granny flat?

    There are a number of factors to consider when planning the design for the granny flat including functional requirements, light, ventilation, insulation and privacy. In terms of design, it will come down to personal taste and budget.


    Invest Plus Granny Flats can create a bespoke design to suit your needs. Learn more about design considerations when planning your granny flat. 


  • Can I rent out my granny flat?

    In NSW, you are permitted to earn a rental income from your granny flat. As long as your granny flat complies with the local council planning restrictions, you can earn significant returns by renting out your granny flat. To get an idea on how much rent  you could earn from your granny flat contact the experts at Invest Plus Granny Flats. 

  • How long does it take to get a granny flat approved?

    It can heavily depend on your local government area. Some council’s have a smooth process for approvals, but others can make the process cumbersome and time consuming. It is good to work with an external partner who knows how to deal with councils like a private certifier or planner. Invest Plus Granny Flats estimates approximately 10 weeks which includes time for creating the conceptual designs, drafting detailed plans, engineering, signing the contract and an official CDC Approval of a granny flat.

  • How long does it take to get a granny flat built?

    The time it takes for the building of a granny flat is heavily dependent on a number of factors. This includes the style, size and construction materials you choose, as well as any complexities such as access, land sloping etc.


    On average, Invest Plus Granny Flats suggests to allow at least 12 weeks for the building period. 

News and Updates

Considering adding a granny flat? Start here.

30 Jun, 2020
There is a lot to consider when deciding if a granny flat is right for your property. It is important to ensure you are well prepared. Shop around, get your finance in order and take the time to plan well. Here are our recommendations on the planning process: Do your research. The first step is to research the best and most viable options for your property. Consider council regulations, research rental returns in your area and the cost and finance options for the construction of your granny flat. Loan or financing options? If you need to borrow money to finance your granny flat investment, you can speak to a mortgage broker or talk to Invest Plus Granny Flats to discover cost effective ways to finance your granny flat project. Consider utilising your superannuation and creating a self managed superannuation option. Adding a granny flat to an investment property. While the most common approach is to add a granny flat to your own property, you can also build a granny flat on an investment property. By adding a granny flat to an investment property your property maintenance and management fees could be shared between the two rentals. Be consistent. If you want the granny flat to add value to your property, make sure it matches your existing home and doesn’t look like an afterthought. It’s also essential to ensure that the granny flat doesn’t dominate the garden or take up too much outdoor space. If you’ve got enough space and the right property, a granny flat is a sound investment. Before you dive in, Invest Plus Granny Flat can provide a free online site assessment.

How to plan your granny flat project.

30 Jun, 2020
Thinking about adding more space for your growing family? If you are working from home, or simply need extra space for a growing family, a granny flat is a flexible and affordable option. Start planning with these 3 top tips: 1. Set your budget and ensure your builder organised and has a stringent process in place for budget tracking. Ensure you read any testimonials or ask for some references of your builder of choice. At Invest Plus Granny Flats, we not only have experienced builders but we can also provide smart financing options to suit your budget needs. We also have a strong network or real estate agents and property managers who can assist in ensuring you gain the maximum return when renting out your granny flat. 2. Ensure your property meets the requirements such as block size, access and boundary requirements. In some cases you may not need council approval, as a project may meet CDC complying development consent. If not then ensure you obtain the appropriate council approvals. Invest Plus can assist with all your certification and development consent approvals. 3. Decide on what your primary use will be, this will determine the internal layout, if it's for personal use, or for an elderly relative, do you need to plan in some future alterations such as wider doors, wheelchair access or other contingencies for retirement living. If it will be a home office thinking about natural light and extra living space might be needed.

Understanding the tax implications of building a granny flat

30 Jun, 2020
Your granny flat can become a profitable income generator. A granny flat investment can be a positively or negatively geared investment. It really depends on the overall value of your property and the potential rental return you receive. You will be eligible for tax deductions, however it will depend on whether your overall investment is positive or negatively geared. If you rent out a granny flat to generate extra income, remember that you will need to pay tax on the rental income you receive. The amount of tax payable will depend on your income tax bracket and your marginal tax rate. You will also be able to claim the depreciation in value of your granny flat investment as a tax deduction each year. If you are building your granny flat on your primary residence, be aware that this will mean that a portion of your property will be subjected to Capital Gains Tax (CGT). The main priority is to work out if it would be feasible for your overall investment and income portfolio. To work out all the possible costs involved and what the impact of the addition needs to be reviewed and we recommend discussing this with a financial planner and getting the most accurate advice in relation to your circumstances. Ask Invest Plus Granny Flats about payment plan options or our finance partner Sum+ can also assist in financing. It may be beneficial to consolidate your debt with the rest of your investment portfolio.
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