Based on current Melbourne market data for a studio-style granny flat with unique character features in a middle-ring suburb.
| metric | projection | notes |
|---|---|---|
| Total investment | $175,000 | design + building permit + construction + handover. land owned. |
| Estimated weekly rent | $480 - $580 | long-term lease. loft design commands premium over standard 1br. |
| Annual gross income | $24,960 - $30,160 | 52 weeks at $480-580/wk. |
| Property management (8%) | $1,997 - $2,413 | standard melbourne management fee. |
| Annual net income | $22,963 - $27,747 | before tax deductions. |
| Gross rental yield | 14.3% - 17.2% | on $175K investment. vs 3.2% for melbourne houses. |
| Airbnb upside | 25-35% yield | $130-180/night at 70-80% occupancy = $33K-$53K/yr. |
| Property value uplift | +$60,000 - $80,000 | premium design = premium valuation. |
| Tax depreciation (annual) | $4,000 - $5,500 | Div 40 + Div 43 deductions. |
Yield Three meets all Victorian 2026 requirements for Small Second Dwellings.
45.5sqm ≤ 60sqm → exempt under VIC law. Building permit only.
Exceeds 2026 energy efficiency standard. Pitched roof aids passive cooling.
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.
The double-pitched roof and attic loft create a character home feel that standard flat-roof granny flats can't match. This model stands out on the rental market.
Unique design = higher nightly rates and better occupancy. On Airbnb, this model consistently outperforms standard granny flats. $130-180/night vs $100-140 for basic units.
The 13sqm attic loft adds flexible space without increasing the footprint. Use it as a second sleeping area, home office, or storage. More function for the same land.
The pitched roof and warm material palette sit beautifully in a backyard setting. Less "shed" feel, more "garden retreat" — which tenants and guests pay more for.
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