Based on current Melbourne market data for a modern 1-bedroom granny flat in a middle-ring suburb (e.g. Wantirna, Mitcham, Ringwood).
| metric | projection | notes |
|---|---|---|
| Total investment | $150,000 | design + building permit + construction + handover. land owned. |
| Estimated weekly rent | $400 - $500 | long-term lease. modern 1br commands premium over older stock. |
| Annual gross income | $20,800 - $26,000 | 52 weeks at $400-500/wk. |
| Property management (8%) | $1,664 - $2,080 | standard melbourne management fee. |
| Annual net income | $19,136 - $23,920 | before tax deductions. |
| Gross rental yield | 13.9% - 17.3% | on $150K investment. vs 3.2% for melbourne houses. |
| Property value uplift | +$50,000 - $70,000 | typical valuation increase after granny flat construction. |
| Tax depreciation (annual) | $3,000 - $5,000 | Div 40 + Div 43 deductions. first 10 years. |
| Breakeven on investment | ~6-8 years | from rental income alone. equity gain is immediate. |
Yield One meets all Victorian 2026 requirements for Small Second Dwellings.
42.8sqm ≤ 60sqm → exempt under VIC law. Building permit only.
Exceeds 2026 energy efficiency standard. Lower bills for your tenant.
Flush entry, accessible bathroom, wider doorways. Mandatory from 2026.
No natural gas connection. Safer, cleaner, future-proof.
Victorian Building Authority registered practitioner.
Termite-proof, non-combustible, 50-year structural guarantee.
Compact footprint. High-end finishes. Perfect for short-stay guests. In a good location, expect $120-180/night at 70-80% occupancy = $30K-$47K/yr.
At 42.8sqm, this model delivers the highest rental yield per square metre of all three options. Lower absolute investment, same high demand.
Smallest footprint = fits on tighter blocks. Less backyard lost. Easier to position on challenging sites. Minimum 300sqm block applies.
At $150K all-in, this is the most accessible granny flat investment in Melbourne. Lower risk. Faster ROI. Test the granny flat investment waters.
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