Why build a Granny Flat in Sydney?

build a Granny Flat in Sydney

Why build a Granny Flat in Sydney?

I think we can both agree with the following statement:

Building a granny flat is a huge decision!

Obviously the largest factor to consider is the grand investment you will be putting into a granny flat but the bottom line is:

Is granny flat worth the investment?

Nevertheless, there is a simple equation to this common dilemma.

I will get there in a moment but before we get in to the money part, consider the following before deciding to build a granny flat:

  1. How practical will my site be for a granny flat? (Consider tenant access and future impact on the existing house)
  2. Is granny flat approval going to be a problem? (Check approval guidelines or arrange a free consultation)
  3. How demanding are granny flat rentals in my area? (Check popular real estate rental sites or speak to your local real estate agent)

Looking good so far?


Now let’s talk money!

So this is how you should work out if a granny flat investment is the right investment:


Weekly granny flat income x 52 (weeks in a year)
Yearly granny flat income ÷ cost of investment
Multiply answer by 100

Granny flat investment example

$450 x 52 = $23,400
$23,400 ÷ $100,000 = 0.234
234 x 100 = 23.4% ROI

So what percentage is a good Return On Investment?

Well, I am not a financial adviser but it seems pretty obvious that money in the bank only pays you a few percent is you are lucky.

So as a rule of thumb (based on our cliental), anything over 6% return is considered a great investment.

So in hindsight a 20-30% granny flat return on investment is quiet tempting indeed.

Ok, I’m in. So now what?

So now it is time to start looking for a granny flat specialist company, like us!

The best way to increase your granny flat return on investment is to design and build your granny flat at a smaller initial investment but still ticking all the boxes.

So what boxes should I be ticking?

Good questions. Look for a company that possess the following attributes:

  • Cost affective granny flat designs
  • Granny flat design team
  • Local granny flat builders in Sydney
  • Have a granny flat display suite with a 1:1 scale sized granny flat
  • Offer a wide range of granny flat solutions
  • Are building conventionally on site and not using granny flat kit homes
  • Granny flat price point maximises your ROI
  • Understand the granny flat approval rules for granny flats in NSW
  • Offer a wide range granny flat designs and facades

Sound good? Visit us!

Half Priced Granny flats tick all the boxes and are price sensitive as we stand by the ROI concept. We offer free consultations at our display suite. We look forward to assisting you with this major decision.

Happy investing!