Granny flat investment returns 15-19% gross yield — before all costs. Compare with 3-4% on a $900K Melbourne investment property. No stamp duty. No second property to buy. No planning permit under VIC's new law.
Three precision-engineered granny flats. Factory-built, VIC compliant, investor-ready.
From $100K + GST in any solid Melbourne suburb — outperforms almost any other investment.
design, building permit, construction, handover. land already owned. no stamp duty.
depending on size (42.8-58.8sqm) and location. modern 1-2br granny flats rent fast.
gross, before all costs — vacancy, management, insurance, rates, land tax, repairs and finance. See what the yield doesn't include.
VIC new law exempts granny flats ≤60sqm on ≥300sqm lots. building permit only (3-6 wks).
Choose your approach. We build the vehicle, you drive it.
Tenant pays $400-650/week (long-term lease). Property manager handles everything. Modern 1-2br units rent within days in Melbourne.
$120-150/night at 70-80% occupancy for a modern, well-finished 1br unit — before platform fees, cleaning and management. Higher return, more hands-on. Ideal for lifestyle suburbs and coastal areas.
Estimated gross returns based on current rental data and real product sizes. All assume a 58.8sqm 2br unit. Before all costs.
Every yield figure on this site is gross — rent before costs. Here is what a landlord actually pays. Indicative annual amounts for a 58.8sqm 2-bedroom unit at $650/week.
| annual operating cost | indicative |
|---|---|
| Vacancy (2.5 weeks) | $1,625 |
| Property management (8%) | $2,704 |
| Letting fee (annualised) | $436 |
| Landlord insurance | $500 |
| Council rates increase | $150 |
| Land tax | $900 |
| Repairs & maintenance | $700 |
| Safety compliance | $250 |
| Water service charge | $300 |
| Tax return preparation | $200 |
| Total operating costs | $7,764 |
| Net operating income | $26,036 |
Finance costs are additional. If you borrow to build, interest is a real cost on top of everything above — and it depends entirely on your loan-to-value ratio, your rate and how the property is held. That is why we publish gross yield only and do not quote a net return after interest. Your net return depends on your loan, your tax position and your ownership structure. Talk to your accountant before you commit.
All prices are + GST. No planning permit needed under VIC's 2026 law. 7-star energy rated.
Real returns from real melbourne properties.
No. Victoria's Small Second Dwelling law (effective March 2026) allows a granny flat up to 60sqm on a ≥300sqm residential lot without a planning permit. You only need a building permit (3-6 weeks). All three of our models (42.8, 45.5, and 58.8sqm) qualify. No neighbour objections, no council delays, no months of waiting.
Yes. The old DPU (Dependent Person's Unit) rules have been replaced. Under the new law, anyone can live in or rent out a small second dwelling — family members, unrelated tenants, Airbnb guests — no restrictions.
A 58.8sqm granny flat returns 15-19% gross vs a $900K house at around 3%. On $176,000 incl GST: about $30,000/yr in gross rent vs $5,000/yr on the house. No stamp duty. No second property to buy. Land tax: from 2026, the part of the land the second dwelling occupies is no longer exempt. And under the new law — no planning permit either.
All models meet Victoria's 2026 requirements: 7-star NatHERS energy rating, Livable Housing Design Standards, and all-electric (no natural gas). A registered building surveyor certifies compliance during the building permit process.
Yes — check your council's short-stay rules. Best approach: live in the main house and airbnb the gf, or put long-term tenants in the main house and short-stay in the gf.
A new granny flat qualifies for div 40 + div 43 depreciation. Typically $3-5K/year in tax deductions for the first 10 years. Your accountant can confirm.
Melbourne's rental vacancy is under 1.5%. Modern granny flats in good suburbs rent within days of listing. Many investors have tenants lined up before construction finishes.
We'll visit your property and produce a custom report: build cost, rental projections, gross yield, and property value uplift. No obligation.
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