--- title: "Understanding Newcastle granny flats as an investment strategy : Backyard Grannys" description: Granny flats are a great investment addition to a property portfolio. We can say this confidently, as we have seen dozens of our clients get a positive return. image: https://blog.backyardgrannys.com.au/hubfs/BYG2025/Resources/Understanding%20Newcastle%20granny%20flats%20as%20an%20investment%20strategy/newcastle-investment-strategy-main.jpg --- Menu [Floor plans](https://www.backyardgrannys.com.au/granny-flat-designs) [Featured builds](https://www.backyardgrannys.com.au/granny-flats-portfolio) [How it works](https://www.backyardgrannys.com.au/how-it-works) [Price guide](https://www.backyardgrannys.com.au/pages/price-guide) [Investor guide](https://www.backyardgrannys.com.au/investors-information) [Contact](https://www.backyardgrannys.com.au/contact) [About us](https://www.backyardgrannys.com.au/about-us) [Showroom locations](https://www.backyardgrannys.com.au/locations) [Meet our team](https://www.backyardgrannys.com.au/our-team) [Awards](https://www.backyardgrannys.com.au/awards) [Resources](https://blog.backyardgrannys.com.au/resources) [FAQs](https://www.backyardgrannys.com.au/faq) # Understanding Newcastle granny flats as an investment strategy Granny flats are a great investment addition to a property portfolio. We can say this confidently, as we have seen dozens of our clients get a positive return. ![Backyard Grannys](https://blog.backyardgrannys.com.au/hubfs/BYG2025/Resources/General/byg_logo_240x240.png) Backyard Grannys 27 Mar 2017 · [Finance](https://blog.backyardgrannys.com.au/resources/tag/finance) Share to [Facebook](https://www.facebook.com/sharer/sharer.php?u=https://blog.backyardgrannys.com.au/resources/understanding-newcastle-granny-flats-as-an-investment-strategy) · [LinkedIn](https://www.linkedin.com/sharing/share-offsite/?url=https://blog.backyardgrannys.com.au/resources/understanding-newcastle-granny-flats-as-an-investment-strategy) · [X](https://x.com/intent/tweet?url=https://blog.backyardgrannys.com.au/resources/understanding-newcastle-granny-flats-as-an-investment-strategy&text=Understanding%20Newcastle%20granny%20flats%20as%20an%20investment%20strategy) · [Pinterest](https://www.pinterest.com/pin/create/button/?url=https://blog.backyardgrannys.com.au/resources/understanding-newcastle-granny-flats-as-an-investment-strategy&media=&description=Understanding%20Newcastle%20granny%20flats%20as%20an%20investment%20strategy) ![newcastle-investment-strategy-main](https://blog.backyardgrannys.com.au/hs-fs/hubfs/BYG2025/Resources/Understanding%20Newcastle%20granny%20flats%20as%20an%20investment%20strategy/newcastle-investment-strategy-main.jpg?width=1920&height=970&name=newcastle-investment-strategy-main.jpg) The team at Mortgage Partners Australia have looked into this in detail and found that it’s a great way to convert a negatively geared property to positively geared, with minimal capital outlay. [Get a free quote](https://blog.backyardgrannys.com.au/resources/understanding-newcastle-granny-flats-as-an-investment-strategy#PageForm) They lay out a scenario whereby the yield of the example property shifts from 8.59% to 15.18% with the addition of a granny flat 100 per cent financed at $125,000. If you are a savvy property investor we urge you to read this article – More about [granny flat investors](http://www.mortgagepartnersaustralia.com.au/granny-flats-investors/). **And if you would like to discuss building a [Newcastle granny flat](https://www.backyardgrannys.com.au/locations/newcastle/), please [contact us.](https://www.backyardgrannys.com.au/contact/)** --- ## Got a question for us? Don't hesitate to get in touch. --- ## Related resources [See all resources](https://blog.backyardgrannys.com.au/resources) ![Celebrating 15 Years of Backyard Grannys | 1,500+ Granny Flat Projects](https://blog.backyardgrannys.com.au/hubfs/1-2.png) ### [Celebrating 15 Years of Backyard Grannys | 1,500+ Granny Flat Projects](https://google.com) Backyard Grannys celebrates 15 years in business and more than 1,500 granny flat projects across Newcastle, the Hunter, Central Coast and Port Stephens. [Insider](https://blog.backyardgrannys.com.au/resources/tag/insider) [Read more](https://blog.backyardgrannys.com.au/resources/15-years-of-backyard-grannys-1500-granny-flat-projects) ![The Rise of the Backyard Rental in NSW: Are Granny Flats Still Worth the Investment This Year?](https://blog.backyardgrannys.com.au/hubfs/DSC00006.jpg) ### [The Rise of the Backyard Rental in NSW: Are Granny Flats Still Worth the Investment This Year?](https://google.com) Discover why granny flats remain one of NSW’s strongest investments. Explore Newcastle rental yields, vacancy rates, and the benefits of building a granny flat investment with Backyard Grannys. [Rentals](https://blog.backyardgrannys.com.au/resources/tag/rentals) [Investment](https://blog.backyardgrannys.com.au/resources/tag/investment) [Read more](https://blog.backyardgrannys.com.au/resources/the-rise-of-the-backyard-rental-in-nsw-are-granny-flats-still-worth-the-investment-this-year) ![Keeping family close: building a granny flat for ageing parents](https://blog.backyardgrannys.com.au/hubfs/backyard-grannys-pacific-hwy-07.jpg) ### [Keeping family close: building a granny flat for ageing parents](https://google.com) Discover how building a granny flat for ageing parents can keep family close, provide independence, and add value to your property. Learn more with Backyard Grannys. [General tips](https://blog.backyardgrannys.com.au/resources/tag/general-tips) [Read more](https://blog.backyardgrannys.com.au/resources/keeping-family-close-building-a-granny-flat-for-ageing-parents-1) ![Backyard Grannys named finalist in three categories at the 2025 HIA Hunter Region Awards](https://blog.backyardgrannys.com.au/hubfs/20250625_BCI_43JarretStKillabenBay(BackyardGrannys)-21.jpg) ### [Backyard Grannys named finalist in three categories at the 2025 HIA Hunter Region Awards](https://google.com) Backyard Grannys’ Kilaben Bay project has been named a finalist in three categories at the 2025 HIA Hunter Region Awards, recognising innovation, affordability and design excellence in this bespoke luxury bushland granny flat. [Media](https://blog.backyardgrannys.com.au/resources/tag/media) [Read more](https://blog.backyardgrannys.com.au/resources/backyard-grannys-named-finalist-in-three-categories-at-the-2025-hia-hunter-region-awards) ![How to earn rental income from a granny flat in NSW](https://blog.backyardgrannys.com.au/hubfs/10South%20copy.jpg) ### [How to earn rental income from a granny flat in NSW](https://google.com) If you’re thinking about renting out your granny flat in NSW, here’s a clear, step-by-step guide to help you get started. [Investment](https://blog.backyardgrannys.com.au/resources/tag/investment) [Read more](https://blog.backyardgrannys.com.au/resources/how-to-earn-rental-income-from-a-granny-flat-in-nsw) ## Get in touch [2/2 Statham Street Bennetts Green NSW 2290](https://maps.app.goo.gl/yWwnF6JKNvFZ56qj9) [(02) 4947 2800](tel:0249472800) [Floor plans](https://www.backyardgrannys.com.au/granny-flat-designs) [Featured builds](https://www.backyardgrannys.com.au/granny-flats-portfolio) [How it works](https://www.backyardgrannys.com.au/how-it-works) [Price guide](https://www.backyardgrannys.com.au/pages/price-guide) [Investor guide](https://www.backyardgrannys.com.au/investors-information) [Contact](https://www.backyardgrannys.com.au/contact) [About us](https://www.backyardgrannys.com.au/about-us) [Showroom locations](https://www.backyardgrannys.com.au/locations) [Meet our team](https://www.backyardgrannys.com.au/our-team) [Awards](https://www.backyardgrannys.com.au/awards) [Resources](https://blog.backyardgrannys.com.au/resources) [FAQs](https://www.backyardgrannys.com.au/faq) [Our locations](https://blog.backyardgrannys.com.au/locations) Follow our socials [facebook](https://www.facebook.com/Backyard-Grannys-464560823635233/) [instagram](https://blog.backyardgrannys.com.au/resources/www.instagram.com/backyardgrannys/) [youtube](https://www.youtube.com/channel/UClt2fYl3o7764Nv6Z7bD40Q/) [linkedin](https://www.linkedin.com/company/backyard-grannys) [pinterest](https://www.pinterest.com.au/backyardgrannys/) Acknowledgement of Country © 2026 Backyard Grannys · [Terms & conditions](https://blog.backyardgrannys.com.au/terms) · Site by [Headjam](https://headjam.com.au) ```json { "@context" : "https://schema.org", "@type" : "BlogPosting", "author" : { "@type" : "Person", "name" : "Backyard Grannys", "url" : "https://blog.backyardgrannys.com.au/resources/author/backyard-grannys" }, "dateModified" : "2025-05-06T05:52:00.678Z", "datePublished" : "2017-03-27T00:00:00.000Z", "headline" : "Understanding Newcastle granny flats as an investment strategy", "image" : [ "https://blog.backyardgrannys.com.au/hubfs/BYG2025/Resources/Understanding%20Newcastle%20granny%20flats%20as%20an%20investment%20strategy/newcastle-investment-strategy-main.jpg" ], "mainEntityOfPage" : { "@id" : "https://blog.backyardgrannys.com.au/resources/understanding-newcastle-granny-flats-as-an-investment-strategy", "@type" : "WebPage" }, "publisher" : { "@type" : "Organization", "logo" : { "@type" : "ImageObject", "url" : "https://blog.backyardgrannys.com.au/hubfs/BYG-logo-2025-main.png" }, "name" : "Backyard Grannys" } } ```