A granny flat is a small, self-contained dwelling that can be attached to the main house, but often freestanding.
Flat pack granny flats are often used as homes for elderly relatives, or for extended family members or even older children. The dream granny flat usually contains a bedroom, kitchenette and bathroom. Size-permitting, you can build a two-bedroom granny flat or three-bedroom granny flat as well.
A one-bedroom granny flat under 40m2 can cost between $80,000 to $130,000 to build.
A two-bedroom granny flat under 60m2 can cost $110,000 to $150,000 to build.
A three-bedroom granny flat can cost between $150,000 and $170,000.
Perhaps you have elderly relatives who need a place to live or a guest house, or you want to create some extra income by renting out a unit. One, two, or three-bedroom granny flats along with your existing home can also be a great way to add value to your property.
To build a generic flat pack granny flat, estimated costs are below.
A one-bedroom can cost up to $40,00.
A two-bedroom flatpack is between $40,000 to $90,000.
Under 40m2 costs around $80,000 to build
Granny flats under 50m2 can cost up to $100,000
Granny flats above 60m2 can cost between $120,000 to $140,000 to build
Estimating granny flat prices and the construction site costs should generally include all materials and trades required to construct the unit, as well as planning and development costs involved. However, be sure that you understand exactly what each component includes before signing a contract with the building company.
In most cases, primary residence areas are limited to a unit that is no larger than 60m²(square metre) but you need to check your specific council or state guidelines.
In addition to professional construction costs, there will be several other extra costs that you should budget for after you have completed building your granny flat. First of all, you will need to pay council fees and land taxes on any rental units. You may also have to pay stamp duty, depending on where you live. Legal fees and advertising costs may also apply to the final price if you plan to rent out your finished project through a real estate agent or privately. In some places, it's possible that developers could charge a levy as well. All property investors must consider all of these extra expenses before committing to the whole process of building a granny flat.
The main difference between a granny flat and a studio is the number of bedrooms. A granny flat will usually have one bedroom, while a studio has none. Some people use the term 'granny flat' to describe any small self-contained housing unit that's separate from the main house and can also be used as a family home office.
Most modern kit granny flat units have similar features, including open-plan layouts, gabled roofs, skillion rooflines or raked eaves, metal cladding, or sheet material.
Many councils require a development application and council fees before the construction of granny flats can begin.
The best way to find any reliable granny flat builders in your area will probably involve getting a lot of granny flat quote from potential tradespeople and speaking with friends and family members who have had a similar completed project built. Before selecting someone to build the unit for you, always make sure that they are licensed granny flat builder and hold the relevant qualifications and insurance cover. For the lowest cost and free site assessment, you can even check the granny flat builders' prices with the other granny flat companies available.
A granny flat can be built in just a few weeks, or it could take several months depending on the size and style of unit required. If you need a one-bedroom kit granny flat with an ensuite bathroom and attached garage you should budget for at least six weeks for construction. If you are hiring kit home builders they should give you an accurate timetable for completion when your initial contract is signed.
It's possible to rent out a granny flat because many people are interested in having their own self-contained unit. If you want to take the next step and start renting out your granny flat, there are certain things that you should be aware of before listing it on websites like Airbnb. For example, if you live in an urban area, local councils may require that the property be approved for short-term rentals.
The NSW Department of Planning and Environment has a handy guide to renting a granny flat, but check to see if any regulations apply to your local area.