The average price of a Sydney granny flat falls between $80,000 to $120,00, but you’re not average (and neither are we). The final price will be impacted by the size, finish quality, and custom inclusions. If you’re looking to upgrade your living or create a source of passive income, read on for the full breakdown of prices for the Sydney market.
Looking to expand your living space without spending big on construction?
Granny flats are exploding in popularity across Sydney as homeowners look to leverage their land. As a way to generate passive income through rent, a way to increase the value of your land, or a place to house friends and family during the chaos of a pandemic, the humble apartment has become a significant advantage.
Although they have their roots as structural options to offer independent living space for family members, the advantages in 2021 are significantly more varied. This arrangement allowed younger members to keep an eye out on the older generation without intrusion, but these mini-homes have expanded their use in modern times.
Today, you can add this type of accommodation to your property for a number of reasons from an expanded living space to a creative work-from-home solution. You can also move into own apartment and rent your primary residence to cut your living expenses and increase income.
But with the allure of this flexibility comes the question of price.
These accommodations come in different shapes and sizes with a variety of amenities so what you pay in granny flat costs in Sydney will ultimately vary depending on what you select. A look at average prices shows the costs to be between $80,000 to $120,00, but you’re not average (and neither are we).
To better explain this wide range, we’re taking a closer look at granny flat cost in Sydney and what can add to or reduce that price.
As with any home improvement, renovation or construction project, price is meaningless if there’s no value on the other side.
So let’s start with the reasons you’re considering building an accessory apartment in the first place.
Are you looking for rental flexibility? In that case, it could be worthwhile in the long term to build an accessory apartment to live in while you rent out your home.
Or, does this accommodation seem like an ideal option for a home office or creative hobby workplace? This might take longer to recoup any of the expense, but the extra space might make your work more enjoyable.
Preference aside, they offer many benefits that make them worth considering. Here are just a few of the exciting advantages for you to consider.
No matter how you plan to use the space, the extra living area can be appealing to future buyers. This increases the appraised value of your property in the event that you want to sell. On average, you can get 10-20% of a return on your investment.
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Rental income can work two ways.
Firstly, you can choose to rent it out to travelers, students, or others in need of temporary housing. Or, you can decide to move into the flat yourself and rent out your main home.
In either situation, you’ll add to your income and can use it to pay down the cost of the granny flat, your primary mortgage, or other expenses as needed.
You don’t have to commit to a use for the space for the long term. As your needs change, your accessory apartment can help meet those needs. For example, you can start with a home office, and with a few furniture changes, convert it to a nearby yet private home from an older family member years later.
As you might imagine, these accommodations come in all shapes and sizes just like standard homes.
The difference is that they remain micro versions that can fit into a smaller space on your property or in your backyard. And just like a primary residence, you can choose from smaller, conservative designs or larger and more luxurious finishes.
Here are the primary influences of your final granny flat cost.
First and foremost, pricing stems from the size of the building project.
This dictates the amount of materials and supplies needed to build out the entire structure. The smallest accommodations can be 30-35 square metres, just enough space to comfortably house a family member or work from home.
Larger floor plans can include two or three bedrooms. Any number of floor plan configurations are possible, but you typically won’t see apartments much larger than 80 square metres.
This one is important to emphasise.
Make sure the builder you choose includes the quality of finishes and appliances you expect for the price you are quoted. Ask to see samples of flooring, countertops, and fixtures and what it would cost if you wanted to upgrade so there are no surprises.
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Most granny flat builders approach the process in two ways: kit or design.
With a kit, most of the options are already preselected and limiting. With a design, you can choose from layouts and options that give you more flexibility. While this can be great, making changes to a set design can lead to more expenses depending on the builder.
Some features that allow for customisation include:
Some granny flat builders work from preset designs and leave out items in order to reduce overall costs.
Be sure to double check these inclusions carefully. Some features you might not miss, while others you could find yourself paying for on your own down the track.
Inclusions you could end up paying extra for include:
Adding an accessory apartment to your property can range in price, some of which you do have control over.
You’ll start by looking at floor plans and designs that are often categorised by size. From there, you can select any upgrades or make changes to inclusions and finishes to make it your own. Unless you go for something overly extravagant, the average granny flat cost in Sydney is between $80,000 to $120,00.
To demonstrate how the size relates to the price, we’ve put together the below table with average costs.
Average Cost per Square Metre
35m2 – 45m2
$80,000 to $125,000
50m2 – 60m2
$110,000 to $150,000
60m2 – 80m2
$120,000 to $160,000
The build process will be unique for every every project, especially when there are so many options for finishes and floor plans.
However, all apartments are subject to a similar overall approach that can take anywhere from 9-15 weeks to complete. Here is a high-level overview of the process.
Step #1: Choose a size, floorplan, and design
Step #2: Confirm finishes and plan customizations
Step #3: File for approvals and permits
Step #4: Clear and prep the building site
Step #5: Build a slab or foundation for the structure
Step #6: Frame, roof, and enclose the building
Step #7: Insulate, line, and add utilities
Step #8: Install windows, cabinetry, and flooring
Step #9: Install fixtures and finishes
Step #10: Finalize décor and design
Step #11: Site inspection
Step #12: Clean up and walkthrough
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Granny flats aren’t just for grandparents anymore.
These versatile spaces can be used to house family members, but they can also be created as home-away-from-home spaces to work and create in. They also give you flexibility for rental income as your needs change over time.
If your property qualifies for an accessory apartment and meets the minimum requirements for SEPP, it can be worth exploring the granny flat cost in Sydney. Of course, this will vary depending on how big of a structure you want to build and how lavish you want your finishes to be. On average, you can expect to spend between $80,000 to $120,000. Just be sure to get a clear estimate of all inclusions from a builder, since the extras and unknowns can add up.
If you’re considering an accessory apartment for your Sydney property, look no further than Bellcast team. You can call us on 04 9191 3030 with any questions or send us a message online. We’ll get back to you as soon as possible and look forward to speaking with you!