How to Know If You Can Build a Granny Flat?

What Is A Granny Flat?

Granny flats are small apartments or houses that can be attached or stand-alone. 

Why Is It Called A Granny Flat?

Because of its most prevalent function—hosting retirees such as parents or in-laws—a "granny flat" has earned its nickname. The vast history of granny flats helps to explain the term; the "dowager house," the forerunner of the granny flat, has been in use for quite some time. 

This was the name given to the separate residence on a Scottish or English estate that belonged to the deceased owner's widow (the "dowager"). When the heir to the estate took over the main home, the dowager was forced to relocate here. For the dowager's sake, it was done so that she could remain in her familiar surroundings and close to her loved ones. 

What Are The Types Of Granny Flats?

The phrase "granny flat" encompasses several different types of dwellings. The two most common types of granny flats are freestanding and linked to the main house. 

Garage Conversion. 

Converting an existing garage into a granny flat is the hallmark of this design style. A garage conversion can be a home office or an artist's studio if the relevant local licences are obtained.

Above The Garage. 

This granny apartment will be constructed on top of the existing detached garage rather than being renovated into an existing structure. You end up with a granny flat detached from your garage, saving valuable square footage.

Basement Or Attic. 

These granny flats are inside the main house rather than outside or behind the main building. One option is making a granny flat out of a spare room, such as in a basement or attic. Installing a granny flat in the attic is more expensive than the basement. Compared to constructing a granny flat from the beginning, additions can add complexity to the construction process.

Standalone Unit. 

The "detached granny flat" is a typical style of dwelling. It's a stand-alone home that isn't connected to anything else on your property. The normal location for this detached structure is the property's backyard.

Can I Build A Granny Flat?

It would help if you put no bounds on your potential. In such case, check off these six prerequisites:

• Your granny flat is being built simultaneously with, rather than before, your primary residence.
• You do not have a strata plan or a community title scheme because your granny's flat is on the same property as the main house.
• There is only one primary residence on the lot (since the land has yet to be partitioned), but another house is also there.
• The plot is large enough to accommodate the granny apartment.
• You agree to the constraints and limitations (outlined below).
• No 'easements' (areas of your property you can't develop because, say, the city needs them) exist.

 

The next step is to receive authorisation from your municipality; in NSW, this is done through acquiring a Zoning Certificate. This will verify your legal right to construct a granny flat on your property.

What Is A Zoning Certificate?

A "zoning certificate" is a Certificate issued under Section 10.7. A title restriction is a legal document that your Council can issue; it affects the land's ownership and specifies the permitted uses of the property.

Common details like these will be displayed:

• In your Council.
• Name and mailing address.
• Certificate Date and Number (valid for three months after issue).
• Your property is outlined in legalese.
• In Your Comfortable Space - Keep this in mind; it concerns the permitted activities in various geographical zones.

The Certificate will also detail the permitted uses for your property, such as:

• Many stipulations, regulations, and limitations are attached to the property.
• When and how you can build on the property.
• Every obstacle to progress must be removed.

To create a granny flat, you first need to get the necessary Certificate. What may and cannot be built, the existence of any restrictions and the likelihood of getting your granny flat permitted are all things you can learn from this.

Advice for those thinking about building a granny unit on their property

Whether it's to provide a place for elderly relatives to live or to rent out for financial gain, a Granny flat is a common addition to many properties.

Here are a few of the most well-liked layouts for Granny Flats:

• Space for the whole family to live together but separate from one another
• Room for work at home
• Separate living space is rented out for supplemental income; examples include Airbnb and vacation rentals.

Local ordinances must be met before a granny flat can be added. Will a granny flat increase your home's resale value if you sell it? Potential purchasers may be interested in the rental revenue the property could bring in.

Access to and from the granny flat and parking considerations are important if the structure is detached. All of these considerations will have to be incorporated into the blueprints.

Once your requirements have been determined, we will help you with the granny flat's design and application to get it approved by the local government so that construction may begin.

Granny flats enhance usable square footage, making them profitable investments.

However, it would help if you considered a few things before building the granny flat of your dreams.

Space

A primary concern is whether or not your yard is big enough to accommodate a stylish granny apartment.

The first requirement is that the land be at least 450 square metres in size and have a residential zoning designation. The total floor area of the granny flat, including the yard, cannot exceed 60m2.

Site Requirements

The width of your property, measured from the building line of your current home, must be at least 12 metres. There must be at least a three-meter (m) setback from the property's rear and a nine-foot (m) setback from its side boundaries.

Trees taller than 4 metres must be kept at least 3 metres away from your granny flat. 

Having easy access to the site is also important. Costs can be reduced with clear access of 1.2 to 1.5 metres; working with tighter quarters is possible but will increase expenses owing to increased physical exertion.

Your Budget

We recommend checking with your bank or financial counsellor before building to guarantee you have the money to finish your granny flat. Adding a granny flat can be cheaper than building a huge house.

Building Approvals

The main issue is figuring out who needs to give their stamp of approval and when. Your granny flat is an accessory dwelling unit (ADU) if it is attached to the main house.

• It can be attached to or detached from the main residence on the same lot as the main residence.

A CDC application must be submitted to your local council or a recognised certifier.

Construction Time

Your new granny apartment should be ready for occupancy in about 12 to 14 weeks. Even though the construction process may only take a few months, you should consider how it may affect your property and neighbourhood.

Depreciation

Since it is considered a secondary residence, a granny flat must generate revenue before any depreciation can be claimed. If that's the case, capital improvements qualify for depreciation. This encompasses any damage that occurs to the building as it ages. 

Adding a granny flat might increase the depreciation schedule even if the primary residence is owner-occupied. For more information, see your accountant or a tax specialist.

Tax Implications

No tax breaks are available if the granny flat is being constructed to house a renter who is a member of your immediate family, such as your parents or children. However, a taxpayer can deduct the cost of financing the construction, maintenance, and ongoing operating expenses from the rental revenue received.

Indications That It Might Be Time To Get A Granny Flat

Here are some indications that a granny flat might be a good idea.

Your Parents Or In-Laws Are Frequent Visitors.

A granny flat is a fantastic option for families and couples who regularly host out-of-town guests such as grandparents or in-laws. You may maintain your privacy while giving them their place by giving them an independent apartment with a kitchen, bathroom, and bedroom. 

Suppose your parents or in-laws plan to move in with you permanently or for an extended period, such as over the Christmas or Easter vacations. In that case, this will ensure that everyone can get along without feeling too crowded.

You Have A Teenager Or Young Adult

When your children reach the "lovely" adolescent stage, it's time to plan a retreat just for them. A granny flat can give them their room, ideal for sleeping, entertaining, relaxing, and studying, in response to their growing desire for privacy and a place to hang out with friends. It's a great way to teach children the value of cleanliness and caring for their place. 

They can save money for a house while still maintaining their freedom by living at home, and you won't have to worry about them coming home all night.

You Need To Make Some Extra Money

Letting out a spare bedroom to supplement your income is unnecessary. You can generate passive income through rent by renting out a granny flat you construct in your backyard.

You will find this extremely helpful if you reside in a major city or near a public transportation hub. Renters are drawn to granny flats because they provide the conveniences of a home (such as a kitchen and bathroom) without the burden of a high mortgage payment for rarely used space. 

A Famous Tourist Attraction Is Located Near Your Home.

If you own a granny flat near a beach or other tourist attraction, you can rent it out during summer and winter. Adding a portable granny flat to your vacation property is a great way to increase your rental income and increase the number of potential guests.

You Need Extra Room But Despise The Thought Of Constructing

A movable granny flat is an affordable alternative to a full-scale house addition if you need more living space but want to avoid staying in your current residence for an extended period. You can attract more purchasers interested in a teen hangout space, a place for the parents to retire, a place for the in-laws to stay, or a rental unit by adding a granny flat to your property. 

Conclusion 

Granny flats have gained popularity over the past decade as a cost-effective alternative to extensive home renovations. They are small apartments or houses that can be attached or stand-alone, and their name comes from the "dowager house," a separate residence on a Scottish or English estate owned by the deceased owner's widow. There are several types of granny flats, including garage conversions, above the garage, basement or attic, and detached granny flats.

To build a granny flat, you must meet six prerequisites: being built simultaneously with your primary residence, not having a strata plan or community title scheme, having only one primary residence on the lot, having a large enough plot, agreeing to constraints and limitations, and not having 'easements'.

In NSW, obtaining a Zoning Certificate is necessary to verify your legal right to construct a granny flat on your property. A zoning certificate is a legal document issued under Section 10.7, which affects land ownership and specifies permitted uses of the property. It includes details about the property, its stipulations, regulations, limitations, when and how to build on the property, and any obstacles to progress.

Granny flats can provide space for families to live together but separate, work at home, or rent out separate living spaces for supplemental income. Local ordinances must be met before a granny flat can be added, and potential purchasers may be interested in the rental revenue the property could bring in. Access to and from the granny flat and parking considerations are important considerations for detached structures.

Granny flats are a popular investment option that can enhance usable square footage and make them profitable investments. However, it is important to consider factors such as space, site requirements, budget, building approvals, construction time, depreciation, and tax implications before building a granny flat.

Space requirements include a yard size of at least 450 square meters and a residential zoning designation. Site requirements include a minimum 12m width, a three-meter setback from the property's rear and nine-foot setback from its side boundaries, and keeping taller trees at least 3m away from the granny flat. Clear access to the site is also crucial.

Budgeting is essential to ensure the funds are available to build a granny flat. Building approvals are required, and the construction process should be completed within 12 to 14 weeks. Depreciation is a secondary residence, and a granny flat may increase the depreciation schedule if it is constructed to house a renter.

Indications that a granny flat might be a good idea include frequent visitors, teenagers or young adults, needing extra income, proximity to a famous tourist attraction, or those who dislike the thought of building a full-scale house. A movable granny flat is an affordable alternative to a full-scale house addition, attracting buyers interested in teen hangout spaces, retirement homes, or rental units.

Content Summary: 

• Can a granny apartment be constructed, though?
• Some rules must be followed to build a granny flat on your property.
• The vast history of granny flats helps to explain the term; the "dowager house," the forerunner of the granny flat, has been in use for quite some time.
• The phrase "granny flat" encompasses several different types of dwellings.
• The two most common types of granny flats are freestanding and linked to the main house.
• Converting an existing garage into a granny flat is the hallmark of this design style.
• This granny apartment will be constructed on top of the existing detached garage rather than being renovated into an existing structure.
• You end up with a granny flat detached from your garage, saving valuable square footage.
• In such case, check off these six prerequisites: Your granny flat is being built simultaneously with, rather than before, your primary residence.
• You do not have a strata plan or a community title scheme because your granny's flat is on the same property as the main house.
• The next step is to receive authorisation from your municipality; in NSW, this is done through acquiring a Zoning Certificate.
• This will verify your legal right to construct a granny flat on your property.
• A title restriction is a legal document that your Council can issue; it affects the land's ownership and specifies the permitted uses of the property.
• The Certificate will also detail the permitted uses for your property, such as: Many stipulations, regulations, and limitations are attached to the property.
• When and how you can build on the property.
• To create a granny flat, you first need to get the necessary Certificate.
• What may and cannot be built, the existence of any restrictions and the likelihood of getting your granny flat permitted are all things you can learn from this.
• Will a granny flat increase your home's resale value if you sell it?
• Access to and from the granny flat and parking considerations are important if the structure is detached.
• Once your requirements have been determined, we will help you with the granny flat's design and application to get it approved by the local government so that construction may begin.
• However, it would help if you considered a few things before building the granny flat of your dreams.
• The total floor area of the granny flat, including the yard, cannot exceed 60m2.
•  Having easy access to the site is also important.
• We recommend checking with your bank or financial counsellor before building to guarantee you have the money to finish your granny flat.
• Your granny flat is an accessory dwelling unit (ADU) if it is attached to the main house.
• Since it is considered a secondary residence, a granny flat must generate revenue before any depreciation can be claimed.
• If that's the case, capital improvements qualify for depreciation.
• Adding a granny flat might increase the depreciation schedule even if the primary residence is owner-occupied.
• For more information, see your accountant or a tax specialist.
• No tax breaks are available if the granny flat is being constructed to house a renter who is a member of your immediate family, such as your parents or children.
• Here are some indications that a granny flat might be a good idea.
• A granny flat is a fantastic option for families and couples who regularly host out-of-town guests such as grandparents or in-laws.
• Suppose your parents or in-laws plan to move in with you permanently or for an extended period, such as over the Christmas or Easter vacations.
• When your children reach the "lovely" adolescent stage, it's time to plan a retreat just for them.
• A granny flat can give them their room, ideal for sleeping, entertaining, relaxing, and studying, in response to their growing desire for privacy and a place to hang out with friends.
• It's a great way to teach children the value of cleanliness and caring for their place.
• They can save money for a house while still maintaining their freedom by living at home, and you won't have to worry about them coming home all night.
• Letting out a spare bedroom to supplement your income is unnecessary.
• You can generate passive income through rent by renting out a granny flat you construct in your backyard.
• If you own a granny flat near a beach or other tourist attraction, you can rent it out during summer and winter.
• Adding a portable granny flat to your vacation property is a great way to increase your rental income and increase the number of potential guests.
• You can attract more purchasers interested in a teen hangout space, a place for the parents to retire, a place for the in-laws to stay, or a rental unit by adding a granny flat to your property.