1.Do I need a Council planning permit?
Usually, no. Under Victoria's current rules, a small second dwelling of 60 m² or less on a lot of 300 m² or more, with no triggered overlay (Heritage, Bushfire, Flood and similar) and no reticulated gas connection, generally needs a Building Permit only — no Planning Permit. We run your address through VicPlan for free and give you a straight answer before you commit to anything. If your lot does trigger planning, we tell you up front and quote the extra step.
2.How long does it take, and will my yard become a building site?
Factory pre-fabrication takes roughly 8–10 weeks (as a guide — typical projects can vary with design and council timing). On site, the main module is craned into position in one day, with fit-out, services and handover completed across roughly 2–3 weeks. Because most of the work happens in the factory, the on-site footprint is small and short-lived. You will not have the three-month building-site look of a traditional extension.
3.What does it cost, and what is included?
1-bedroom from $100K + GST · 2-bedroom from $160K + GST. Pricing is itemised, not a lump sum.
Included: structure, windows and doors, internal fit-out, kitchen and bathroom, electrical, plumbing, air conditioning, transport and installation.
Not included: site-specific footings or slab preparation, landscaping, fencing, and any mains service connections where required.
Included: structure, windows and doors, internal fit-out, kitchen and bathroom, electrical, plumbing, air conditioning, transport and installation.
Not included: site-specific footings or slab preparation, landscaping, fencing, and any mains service connections where required.
4.Can I rent it out, and who can I rent it to?
Yes. A lawfully approved small second dwelling can be rented to anyone — family, a tenant, or as short-stay accommodation where local rules allow. There is no restriction limiting it to family only.
The one thing you cannot do is subdivide it off and sell it separately: it must stay on the same title as the main house.
The one thing you cannot do is subdivide it off and sell it separately: it must stay on the same title as the main house.
5.What rental return can I expect?
It depends on your suburb and the size of the dwelling. As a guide, a self-contained one-bedroom granny flat in Melbourne's east has been leasing in the mid-hundreds per week, and a two-bedroom higher again. Rather than quote you a number we cannot stand behind, we will look at current comparable listings for your actual suburb and give you a written estimate before you sign anything.
6.Will a granny flat affect what my house is worth?
Industry figures commonly cited in Australia put the uplift from an approved second dwelling in the range of 15–20% — but treat that as a general market indication, not a valuation. What we can say with confidence is that the dwelling becomes part of the property, transfers with the sale, and lets the property be marketed as one title with two income streams. For your own property, ask your agent or valuer.
7.How does this compare with a traditional extension?
A granny flat is built separately, so your main house stays habitable for the whole build — no family living in a construction zone. It is also, on typical projects, faster and lower cost than an equivalent extension.
The structural difference is the point: an extension adds floor area, while a separate dwelling adds floor area and the possibility of a second income stream.
The structural difference is the point: an extension adds floor area, while a separate dwelling adds floor area and the possibility of a second income stream.
8.Is rental income taxed?
Yes — rent is assessable income and needs to be declared. The upside is that associated costs can generally be claimed, including interest on borrowings used to fund the build, depreciation, repairs, insurance and management fees.
We are builders, not accountants. Please have your accountant model the tax position for your situation before you commit.
We are builders, not accountants. Please have your accountant model the tax position for your situation before you commit.
9.Roughly how long until it pays for itself?
That is arithmetic on your numbers, not ours: it depends on your build cost, your rent, and your marginal tax position. As a rough illustration only, an investor funding the build outright and renting the dwelling out is typically looking at a payback period in the order of years rather than months — and holding long term usually captures both the rent and the capital uplift.
Ask us for the suburb-level rent figures and we will run the numbers with you.
Ask us for the suburb-level rent figures and we will run the numbers with you.
10.Can I install separate electricity and water meters?
Yes. Sub-meters can be installed so the dwelling's consumption is measured separately and the occupant pays for what they actually use. This avoids the most common source of friction between a landlord and a tenant on the same property.
We confirm the metering arrangement with your network and plumber during design.
We confirm the metering arrangement with your network and plumber during design.
Please note. The information on this page is general guidance for Victorian residential projects and is not legal, planning or financial advice. Permit requirements depend on your individual title, overlays and council, and are confirmed only by that council or a private building surveyor. Rental, yield, tax and payback figures are illustrative only and are not a forecast of your return. Obtain your own planning, valuation and taxation advice before committing to a build.