๐Ÿ‡ฆ๐Ÿ‡บ VIC law 2026: Build a granny flat up to 58.8sqm โ€” no planning permit needed on most properties โ‰ฅ300sqm. Only a building permit required. Learn more โ†’
granny flat investment ยท melbourne ยท no planning permit

turn $150K into
$28K annual passive income

Granny flat investment returns 15-20% gross yield โ€” compare with 3-4% on a $900K Melbourne investment property. No stamp duty. No second mortgage. No planning permit under VIC's new law.

15-20%
gross rental yield
$400-700
weekly rent
+$70K
avg property uplift
3-6 wks
building permit
Yield Two โ€” 2 bedroom granny flat

meet the models.

Three precision-engineered granny flats. Factory-built, VIC compliant, investor-ready.

the math is straightforward.

From $150K in any solid Melbourne suburb โ€” outperforms almost any other investment.

$150K
from (all-inclusive)

design, building permit, construction, handover. land already owned. no stamp duty.

$400-700
weekly rent range

depending on size (42.8-58.8sqm) and location. modern 1-2br granny flats rent fast.

$21-36K
annual rental income

before management fees (~8%). against $150K all-in, that's a 14-19% gross return.

no permit
planning permit needed

VIC new law exempts granny flats โ‰ค60sqm on โ‰ฅ300sqm lots. building permit only (3-6 wks).

two strategies. one asset class.

Choose your approach. We build the vehicle, you drive it.

โšก strategy a โ€” long-term rental
15-19% yield

steady cashflow investor

Tenant pays $400-700/week (long-term lease). Property manager handles everything. Modern 1-2br units rent within days in Melbourne.

  • vacancy rate under 1.5% in melbourne
  • depreciation schedule saves $3-5k/yr in tax
  • negative gearing benefits available
  • VIC new law: no planning permit needed
๐Ÿ”ฅ strategy b โ€” airbnb / short-stay
25-35% yield

premium yield seeker

$120-200/night for a modern, well-finished 1br unit. Higher return, more hands-on. Ideal for lifestyle suburbs and coastal areas.

  • fully separate entry for guest privacy
  • modular construction โ€” design with short-stay in mind
  • box hill / ringwood / glen waverley premium
  • VIC new law: no planning permit needed

yield by suburb.

Estimated returns based on current rental data and real product sizes. All assume a 58.8sqm 2br unit.

wantirna
17%
est. $550-650/wk
box hill
17%
est. $580-680/wk
ringwood
16%
est. $530-630/wk
glen waverley
17%
est. $600-680/wk
doncaster
16%
est. $550-650/wk
mitcham
16%
est. $520-620/wk
blackburn
17%
est. $560-660/wk
burwood
17%
est. $570-670/wk

pick your investment vehicle.

All prices all-inclusive. No planning permit needed under VIC's 2026 law. 7-star energy rated.

Yield One
โœ“ no planning permit

yield one

$150K
42.8sqm ยท 1 bedroom
๐Ÿ›๏ธ 1BR + ๐Ÿšฟ 1 Bath + ๐Ÿณ Kitchen + Dining
est. 17-19% gross yield
  • compact & efficient โ€” best rental yield per sqm
  • est. rent: $400-500/wk
  • best for short-stay / airbnb strategy
  • ideal for smaller blocks (300sqm+)
check my yield โ†’
7โ˜… NatHERS โ™ฟ Livable Housing ๐Ÿ”Œ All-electric
Yield Three
โœ“ no planning permit

yield three

$175K
45.5sqm ยท 1BR + attic loft
๐Ÿ›๏ธ 1BR + ๐Ÿšฟ 1 Bath + ๐Ÿณ Kitchen + ๐Ÿ  Loft
est. 17-19% gross yield
  • unique double-pitched roof with loft bedroom
  • est. rent: $480-580/wk
  • standout design โ€” premium airbnb appeal
  • style-conscious investors' choice
check my yield โ†’
7โ˜… NatHERS โ™ฟ Livable Housing ๐Ÿ”Œ All-electric

Real returns from real melbourne properties.

"Built the 2br in box hill. $175K all-in. Rented at $680/week. My valuer said the house jumped $80K. And the new law meant no planning permit hassle."
box hill investor
$35k/yr passive + $80k equity
"3 investment properties yielding 3.5%. Built one granny flat in wantirna โ€” that property now yields 14%. Rolling it out across all three. No council planning nightmares."
wantirna portfolio investor
3.5% โ†’ 14% on one property
"Yield One in ringwood. $180/night on airbnb, 80% occupancy. $36k/year on a $150k investment. VIC's new law made the whole process so much faster."
ringwood airbnb host
$36k/yr on $150k investment

investor faq

do i need a planning permit? (new 2026 law)

No. Victoria's Small Second Dwelling law (effective March 2026) allows a granny flat up to 60sqm on a โ‰ฅ300sqm 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.

can anyone live in it or rent it?

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 โ€” family members, unrelated tenants, Airbnb guests โ€” no restrictions.

how does this compare to buying a second investment property?

A $165K granny flat yields 16-18% vs a $900K house at 3%. On $165K invested: ~$28K/yr vs ~$5K/yr. No stamp duty, no land tax, no second mortgage stress test. And with the new law โ€” no planning permit either.

what about energy and building standards?

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.

can i run this as an airbnb?

Yes โ€” 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.

what about tax depreciation?

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.

what's the vacancy risk?

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.

get your free investment report

We'll visit your property and produce a custom report: build cost, rental projections, gross yield, and property value uplift. No obligation.

get my investment report โ†’