How Much Does It Really Cost To Build a Granny Flat In Sydney?

The range of prices to build a granny flat that you see on the internet these days varies dramatically. Costs of granny flats start from as low as $10,000, but be warned, these unbelievably low price granny flats can be very misleading. We often have customers come to us with unrealistic budget expectations so we would like to shed some light on the matter and provide some honest information to the granny flat market out there.

To get a granny flat of a standard that you would be happy to let a member of your family or a paying tenant live in, you are realistically looking closer to a range of $100,000 - $150,000. This price range is a turn-key price. So rather than just being just an empty shell, it will include everything involved in the build of your new granny flat: from earthworks, to electrical and plumbing, to insulation, cladding and painting. It will be a home that is comfortable and welcoming.

Pre-fab granny flats and kits homes are often advertised as cheap alternatives but again be warned, the prices originally quoted quickly creep up as you factor in the extra costs of installation and making the shell livable.

Prices will range drastically depending on whether you are after basic finishes, through to a full luxury granny flat with all the trimmings. To understand exactly what a quoted price actually means, ask lots of questions.  What does the price of the granny flat include? Is it insulated? Painted? Is a kitchen included? An oven, curtains, carpet? Think carefully about what you want and need. Trying to cut costs during the build, may lead to higher costs later down the track.

On top of the costs of the build, you will also need to factor in the price of design and approvals for your granny flat. For a granny flat designed to suit your property, you will be looking at a price of $7000-$12,000 including all plans and council fees. Although you can cut costs by going for standard design, just a little extra outlay to get a granny flat custom designed to your site can make the world of difference. The difference between a Granny flat that gets no sun, doesn’t take full advantage of solar access and looking onto a concrete wall versus a light north facing living space filled with sunshine, cool breezes and a view.

There are other ways to bring the price down. To reduce the costs of your granny flat, you may be able to convert an already existing garage, or do some of the work yourself. Whether it is painting, landscaping or building your own deck, each will reduce the overall cost and give you the added satisfaction of playing an active role in the project.

When considering the price you’re willing to pay, it pays to do the maths. What will your granny flat rent out for? If that is its purpose. Or how much will it increase the value of your home? The average rent of a 2 bedroom granny flat on the Northern Beaches is well over $600/wk making the return on investment on a granny flat costing $120k an excellent investment.

Ultimately, the price you pay will reflect the new home you will receive. So do your homework and research on the current legislation and speak to a few granny flat companies before making that commitment.

Good luck with your future endeavours and we hope that if you go down the granny flat path you end up with a quality granny flat at a fair price!