The Pros And Cons Of Building A Granny Flat In Your Property

December 23, 2022

If you’re considering adding a granny flat to your property, one of the first questions to ask is whether it’s truly the right decision to make. It’s a significant undertaking and it’ll affect your property—and your life—today and the future.

Keep in mind that building a granny flat on your property comes with caveats. Weighing out the pros and cons will help you decide whether it’d be worth your investment. Keep on reading to learn more.

What’s A Granny Flat

Granny flats get their name because they’re often built to accommodate an elderly parent, or grandparent, within your property. They’re very popular in Australian cities and rural areas alike. However, despite their name, did you know that granny flats can be used for multiple purposes besides housing a senior family member?

Granny flats are self-contained residential living areas, typically built on the same property as single-family homes. They’re typically situated in the backyard. The best granny flats will usually be built by specialists, like Granny Flats Sydney. Experienced builders know how to design the building to fit the available space.

Pros Of Granny Flat

Having a granny flat in your property line can bring a number of advantages. Some of them are:

1. Helps In Keeping Your Family Closer

Although elderly parents or grandparents are some of the more common granny flat residents, that’s not always the case. You might also build a granny flat for your child to live in or rent as they become a teenager or young adult. A granny flat can keep your family’s ties with one another.

2. Increases Your Home’s Value

Granny flats offer additional living space and, as you’ll read below, can be used to earn rental income. The presence of a granny flat can be beneficial to whoever owns the property. A granny flat increases your property’s resale value. The increase in value can reach up to 30%, depending on where you live and the market conditions.

3. Allows You To Earn Additional Income

A granny flat can give you rental income. You can either rent out the unit itself, or live in the granny flat while renting out the main house to a family. There are several reasons to do this, one of the biggest being that it could help pay off your mortgage. Or, it could simply be another stream of income for you.

4. The Resident Is In A Separate Space

Some homeowners rent out rooms in their houses. Whether renting to a tenant or housing someone close to you, granny flats are separate from the main home. Whichever of the two, the resident(s) in the other living space won’t be cohabiting with you, which can be valuable if you like privacy.

5. They Can Be Used For Other Purposes

Aside from the other pros listed here, granny flats are helpful on your property. It’s an extra space that you can utilize for whatever you want. It could become a home office if you work from home. It could act as a guest house for visitors. You could even use it for extra storage space.

Cons Of Having A Granny Flat

Granny flats have some great benefits, but they also have their downsides. Here are some of the main ones to consider:

1. Takes Up Outdoor Space

The first and most obvious downside of having a granny flat is that it takes up space on your property. If your property is big, or if you have unused space, this might not be an issue for you. But for those who like having various facilities in their yard, be aware that a granny flat will consume some of the available space.

2. You Must Go Through An Approval Process

Depending on where you live and the community building codes up in place, granny flats may not be allowed on properties. In places where it’s allowed, you might have to go through an approval process with the appropriate local authority. Fortunately, it’ll most likely be a one-time thing.

3. Some Homebuyers Aren’t Keen On Granny Flats

Unfortunately, not everyone wants to buy a home with a granny flat. It generally increases the asking price for the property, which could turn many penny-pinching buyers away. Other buyers might not want to take on maintaining an additional living area.

4. Building And Maintenance Costs Are Expensive

Any building is expensive. The same goes for granny flats. Also, things can go wrong in them just as in regular houses. For example, you might consider installing temperature control systems in the flat. This means you should be prepared to maintain them.


Granny flats are flexible, self-contained living quarters that can be used for whatever you, as the owner, wish. You can rent them out for extra income, let someone live in them, or use them as a home office. Plus, it increases your property’s value! On the flipside, having a granny flat will take up space on your property. And once you have it, you’ll have to maintain it.

Make sure to weigh the pros and cons before having a granny flat constructed on your property. Consult with a granny flats builder in Sydney or where you’re located.

Carlos Diaz
I believe in making the impossible possible because there’s no fun in giving up. Travel, design, fashion and current trends in the field of industrial construction are topics that I enjoy writing about.

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