Granny flat investment returns 15-20% gross yield — compare with 3-4% on a $900K Melbourne investment property. No stamp duty. No second mortgage.
A $165K granny flat in any solid Melbourne suburb outperforms almost any other investment.
design, permit, construction, handover. land already owned.
current melbourne market rate for a modern 1-2br granny flat.
$550/wk x 52 weeks. after management (~8%): ~$26K net.
compare with melbourne houses at 3.2% and units at 4.8%.
Choose your approach. We build the vehicle, you drive it.
Tenant pays $550-700/week (long-term lease). Property manager handles everything.
$120-200/night for a modern, well-finished unit. Higher return, more hands-on.
Estimated returns based on current rental data. All assume a $165K signature (65m²) all-in.
All prices all-inclusive. Projected returns vary by location and strategy.
Real returns from real melbourne properties.
A $165K granny flat yields 17% 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.
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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