Granny flat vs secondary dwelling

What is a secondary dwelling?

Secondary dwellings are a simple and affordable housing alternative popular amongst families and investors alike. Although local council zoning regulations vary, the secondary dwelling definition includes self-contained homes that are:

• Established in conjunction with the principal dwelling (the main house)
• Built on the same lot of land as the principal dwelling
• Located within, attached to or separate from the principal dwelling.

So, is a granny flat a secondary dwelling? In short: yes. The beloved granny flat falls within the above definition of a secondary dwelling, and the terms are used interchangeably.

As detailed in Backyard Grannys’ secondary dwelling fact sheet NSW and discussed further below, you don’t need council development approval to build your granny flat. So, there’s no better time than now to construct a granny flat on your property for elderly relatives, adult children entering the property market, or external tenants.

Granny flats are a kind of secondary dwelling

With the economic uncertainty unleashed by the pandemic, many homeowners have sought to diversify their income and increase the earning potential of their properties. Further, the popularity of granny flat rentals has skyrocketed as many individuals and families continue to relocate. The competitive rental market, combined with the rise of Airbnb and the like, has influenced savvy Australian homeowners and investors to add dual occupancy to their properties.

If you are considering adding to your existing property, you may be confused about granny flats vs. dual occupancy. Rightly so, as the key difference between a granny flat vs dual occupancy centres on ownership.

In summary, a granny flat is a self-contained extension to a principal dwelling, and is a type of secondary dwelling. As granny flats share common utility connections with the main home, they’re typically occupied by relatives (but not just grannies!) who live in an attached or separate structure.

In contrast, a dual occupancy is simply when two residences exist on a single lot, a primary and a secondary dwelling sharing a title and land-owner. This could be a granny flat, or a duplex. For more information around dual occupancy, granny flats and duplexes check out our article: Granny Flat vs Dual Occupancy vs Duplex

Check out some recently built Granny Flats

Secondary dwelling benefits

This section explores the numerous financial and personal benefits of adding a secondary dwelling to your property.

Property value and ROI

Building a secondary dwelling can increase your property value. Homeowners, both current and future, see the earning potential of a granny flat for rent, which can yield an ROI of up to 15%. Whether you build your granny flat to rent short-term or long-term, it is an affordable and quick way to increase occupancy and property value.

Additionally, many families invest in a granny flat to provide secure accommodation close to home for elderly relatives or their adult children.

Wondering how much ROI you might get on your granny flat investment? Try our ROI calculator.

Easy council application process

Besides adding a stylish extension of living space, one of the key benefits of granny flats is the simple application process. In NSW, you don’t need to obtain council approval to build a granny flat if your property meets specific criteria.

Authorisation to build your granny flat can be fast-tracked to as little as ten days when you obtain a Complying Development Certificate (CDC). The implementation of the Affordable Rental Housing State Environmental Planning Policy (“SEPP”) in 2009 streamlined the development process. This updated policy switched the time-consuming requirements of a standard Development Application to a simple CDC and reduced restrictions on zoning regulations.

To qualify as complying development, your build must meet the requirements outlined in the NSW SEPP, including:

• Your property must be residentially zoned and at least 450m² in size
• For detached granny flats, your property must have a 12m width at the building line of the current dwelling
• You must maintain a 3m setback from the rear boundary plus 0.9m from the sides
• Existing trees taller than 6m need at least 3m of space
• The maximum internal floor space for your granny flat is 60m²

Drafting secondary dwelling designs to meet the above criteria may seem confusing at first. But rest assured, Backyard Grannys will conduct a complimentary site inspection to help you understand local regulations and any site features or complexities that may influence the design.

For a full rundown of Complying Development requirements check out our guide to No Council Approval Granny Flats

Build your own secondary dwelling

So, now you’re up to speed on the secondary dwelling definition and basic SEPP conditions to skip a DA and fast-track your application through a CDC. It’s time to start building your very own secondary dwelling.

Building your own secondary dwelling or granny flat usually takes 12-14 weeks from construction to completion. But first, let’s discuss the initial stages before construction commences.

Complimentary site inspection

Look before you leap and ensure your site is suitable for a secondary dwelling. Contact the friendly team at Backyard Grannys today to arrange a free site inspection to determine if you meet the conditions to build under a CDC.

Style and design

Work alongside one of our in-house designers to specify picture-perfect plans for your design. Your secondary dwelling will also adhere to all relevant regulations through intentionally designed function and form.

CDC, construction, and preparation

You will prepare and submit your CDC through your builder of choice and sign their construction contract. Then, the site will be prepared, including removing any debris.

Foundations and frame

The site is then excavated, and the foundational slab poured. Your secondary dwelling will begin to take shape as the internal and external frames are erected.

Outside in

Starting with the roof and external brickwork, the secondary dwelling will be ready for interior construction, including plumbing and electrical.

All in

The internal walls and insulation, kitchen cabinetry and appliances, flooring and finishing touches will all be completed to turn this construction into a house and then a home.

Finally, once we’re confident you’re delighted with the build, we’ll hand over the keys. Cue the champagne!