How much does it really cost to build a granny flat?
On Sydney's Northern Beaches, the granny flat business is booming. Property owners are keen to earn some more revenue form their land or extend their family homes, but t costs of building a granny flat that are advertised seem to vary dramatically.
The price of a granny flat in starts from as little as $10,000, but be warned, this unbelievably low price 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 out or house a member of your family in, you are realistically looking closer to a range of $100,000 - $150,000. This price range is a turn-key price, meaning that rather than being just an empty shell, it will include everything you need. 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 cheaper options but again be warned, these prices can quickly creep up as you factor in the extra costs of installation and making that shell liveable.
Prices can range dramatically depending on whether you are after a basic finish or a full luxury granny flat with all the trimmings. To understand exactly what a quoted price actually means, you should ask lots of questions. What does the price of the granny flat include? Is it well insulated? Painted? Is a full 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 specifically for your property, you will be looking at a price range of $7000-$12,000 including all plans and council fees. Although you can cut costs by going for a 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 reduce the price. To bring the costs of your granny flat down, 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 (insert hyperlink to Is my Property Suitable page)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!