From fixed-price granny flats to custom upgrades, costs vary depending on the builder, the type of granny flat, and the features you choose to include. In other words, to ensure you spend your dollars wisely and avoid hidden costs, you’ll need to consider more than a single price tag.
Let’s crunch some numbers!
From $80,000 to $330,000.
When it comes to estimating granny flat prices, there’s no short answer. There are a variety of factors that will influence the cost of building your granny flat. These factors are not always apparent to new buyers at the start of the process (especially if you’re dealing with the wrong builders), so we’ve outlined the key cost considerations you need to know about.
On the surface, a granny flat kit home for $80,000 appears to be a “wallet-friendly” solution over a custom-built granny flat. However, many kit home companies fail to provide the full turnkey price as supplied by custom granny flat builders, which means you can end up facing a variety of hidden or unexpected costs, including:
With a custom granny flat quote from the right builder, you can be sure all key features are covered in the overall cost. But it’s not all about granny flat prices – from flexible designs to guaranteed timeframes, there are plenty of reasons why you should opt for a custom granny flat over a kit home. Thank us later!
Once you’ve made the call to invest in a granny flat of your own, the next step is to decide on a builder who can make it happen. Make sure you choose a reputable granny flat company to take care of the granny flat build with:
Be conscious that not all granny flat companies deliver the same standards. Some act merely as project managers. Some are designers or architects that may not have a building background or have the knowledge to assess what is practical on your block. Look for experienced specialist builders, as this will make a huge difference to your overall experience and end product.
At Backyard Grannys, we’ve changed the lives of over 1000+ customers and our transparent process and turnkey solutions mean you know everything (and we mean everything) that’s included in your quote from the start. To top it off, we cover a wide range of features and services at no extra cost.
Start off on the right foot with some more tips for choosing your granny flat builder.
We’ve collated plans, quotes, final figures and data from over 9 companies from Sydney all the way to Newcastle and here are the cost inclusions for all granny flats plans and prices:
And of course, you need to factor in the size of your granny flat!
Minimum size: 36m²
The most affordable option is a one-bedroom granny flat. This is the perfect way to add some comfortable living space to your property.
Starting Price:
Based on our research, companies are starting anywhere from as low as $120,000 to $140,000. Always ask for what the price includes.
Our research shows that a standard practice at the lower end of that spectrum is to leave out a lot of extra costs. This practice gives the illusion of a cheaper end product, however, once the complete price is revealed the buyer is too far through the process to back out and can be stuck with a much higher cost than anticipated.
Complete Price:
Typically, a one-bedroom granny flat should cost anywhere between $160,000 – $180,000 which includes site costs, designs, approvals, build price and standard inclusions, and full turnkey ready-to-move-in. This represents the actual cost you can expect for a basic one-bedroom granny flat construction.
Maximum size: 60m²
The most popular choice for investors and those looking to build for family is our two-bedroom granny flats, as these designs offer a lot of versatility for any lifestyle. They also provide a longer-term strategy for both family and investors alike, offering some of the best returns for property investors.
When it comes to keeping care in the family, a self-contained two-bedroom granny flats is an ideal solution. They are a great way to give elderly or disabled family members the independence, privacy and comfort they deserve, whilst living just steps away from your family home.
Starting Price:
Based on a survey of companies, most builders are starting anywhere from as low as $150,000. Again, the price variance really depends on the builder and how much they are willing to pass on the complete price. If you have quotes from other granny flat companies, compare the quotes carefully and always ask what the price includes.
Complete Price:
On average, a complete two-bed granny flat tends to cost between $170,000 and $200,000. This price should include site costs, designs, approvals, build price and standard inclusions, and full turnkey ready-to-move-in. This represents the actual cost for a standard two-bedroom granny flat build.
Maximum size: 60m²
A popular choice among our investors, particularly if you have lots of backyard space or are located close to major educational facilities like universities and tourist hot spots. Three-bedroom granny flats offer the joys of a typical house for a fraction of the cost.
One consideration, when choosing to build a 3-bedroom granny flat is that you’re still restricted to the regulatory maximum secondary dwelling lot size of 60m². This means that you will need to reduce the kitchen and living room space to allow for the 3rd bedroom.
Starting Price:
Based on Backyard Grannys research, builders are starting anywhere from as low as $165,000. Again, the price variance really depends on the builder – as with any granny flat size, make sure to compare quotes for inclusions.
Complete Price:
On average, a complete three-bed granny flat tends to cost between $175,000 and $210,000. This price should include site costs, designs, approvals, build price and standard inclusions, and full turnkey ready-to-move-in. This represents the actual cost for a typical three-bedroom granny flat build.
A popular choice among our property investors and those looking to build for family, particularly if you have rear lane access to your backyard or have a substantially large block.
Starting Price:
Our research shows that 2-storey granny flats are being advertised at $250,000 to $280,000. As with other granny flat designs, this starting price is often understated, so always ask about the inclusions and check for any hidden costs in the final quote.
Complete Price:
For an accurate total cost, our research suggests the actual complete price is often in the range of $290,000-$330,000. This is once you take into account site costs, designs, approvals, build price, and standard inclusions.
Designing your granny flat should be a completely personal process. While many are simply looking for an affordable housing solution, others are looking to build the small home of their dreams. There really is no limit to what can be achieved, with custom designs fast becoming the norm for new owners. If your budget allows, the design possibilities are endless.
One of the first financial decisions to make is to choose the foundation material: a concrete slab or bearers and joists.
At Backyard Grannys, we include a concrete slab in the standard build cost for each granny flat. As well as formwork, waffle pods and steel reinforcement, and this process will involve pump hire. If you’re working with a flat site, a concrete slab is hands down the most affordable foundation for your granny flat!
It’s another story if you need to excavate and level the site or in a flood effected zone – that’s when bearers and joist floor systems come in. We offer this option to anyone building a granny flat foundation on a sloping block – a process that requires additional costs for scaffolding. That said, when you’re dealing with a steep slope, bearers and joists are more cost-effective than a concrete slab because they eliminate the need for excavation and retaining walls.
Still not sure? Check out our blog to further compare the value of concrete slabs versus bearers and joists.
We all want our loved ones to grow old somewhere they feel safe, supported and happy. But you don’t have to fork out eye-watering monthly charges to cover the cost of running their retirement village. You also don’t need to have grandma and grandpa move into main house, which could harm their sense of independence and comfort (and leave you with even less privacy and personal space).
Let’s talk numbers for a minute. Many nursing homes are paid for with an upfront Refundable Accommodation Deposit, which can cost anywhere from $250,000 to $550,000 (or a daily charge of up to $50 a day). At that rate, 20 years of aged care means paying the nursing home a total of $365,000 – a sum which could have been used to build a granny flat that will live on as a valuable asset for future generations.
In short, a granny flat allows you to keep your money in the family instead of giving it to a retirement home – all whilst creating the perfect home for your loved one. By building a granny flat on your property, your relatives can enjoy privacy and independence, while at the same time receiving whatever familial support and custom accessibility they need.
Find out more about the benefits of granny flat living for elderly relatives.
If we haven’t caught your interest yet, maybe the fact that a granny flat could earn you upwards of 14k per year will. And there’s big bonuses for the landlord, too.
Purchasing or building a granny flat is usually more cost-effective than buying a standalone investment property. That means you can get your investment portfolio off the ground without taking out a large loan – not to mention the significant depreciation entitlements a granny flat will bring!
All in all, renting your granny flat is an excellent way to monetise that extra space you already own, but don’t use. With an average ROI of 10-20%, you’ll enjoy a nice boost in annual income.
Here are some pointers to maximise your granny flat returns:
To learn more about how building a granny flat can be a positive asset, you can get some investment inspiration from this Central Coast granny flat success story or check out our ROI calculator to discover just how much you could earn from a granny flat rental each year! Alternatively, learn more with our ultimate guide to granny flats in Australia.