Based on current Melbourne market data for a modern 2-bedroom granny flat in a middle-ring suburb (e.g. Box Hill, Wantirna, Blackburn).
| metric | projection | notes |
|---|---|---|
| Total investment | $165,000 | design + building permit + construction + handover. land owned. |
| Estimated weekly rent | $500 - $650 | long-term lease. 2br commands significant premium over 1br. |
| Annual gross income | $26,000 - $33,800 | 52 weeks at $500-650/wk. |
| Property management (8%) | $2,080 - $2,704 | standard melbourne management fee. |
| Annual net income | $23,920 - $31,096 | before tax deductions. |
| Gross rental yield | 15.8% - 20.5% | on $165K investment. vs 3.2% for melbourne houses. |
| Property value uplift | +$70,000 - $90,000 | 2br adds more value than 1br. family buyers willing to pay more. |
| Tax depreciation (annual) | $4,000 - $6,000 | Div 40 + Div 43 deductions. larger asset = larger deductions. |
| Breakeven on investment | ~5-7 years | from rental income alone. equity gain is immediate. |
Yield Two meets all Victorian 2026 requirements — and at 58.8sqm, it's the maximum size allowed without a planning permit.
58.8sqm ≤ 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.
At 58.8sqm, this model is precision-sized to the legal limit. Every square metre is maximised for rental return — without triggering a planning permit requirement.
Two bedrooms open the door to family tenants, higher income thresholds, and significantly better rent-per-sqm than any 1br. $500-650/wk vs $400-500/wk for 1br.
Valuers consistently assign $70K-$90K in added property value for a well-built 2br granny flat. That's 42-55% of your investment returned as instant equity.
Ideal for aging parents or young adults who need independence. If the rental market shifts, this model converts easily to family accommodation. Built-in flexibility.
Get a custom investment report for your specific property — build cost, rental projections, yield, and equity uplift. Free, no obligation.
get my investment report →