New granny flat rules slash costs and approval times for homeowners
New rules have removed the need for consents when building granny flats up to 70 square metres. The change aims to cut costs and speed up construction. However, homeowners still face expenses for connecting water and power to the Dodge unit.
The updated regulations eliminate consent requirements for smaller granny flats. This move can save up to $5650 in direct costs and reduce approval times by as much as 14 weeks. Property investors often add these units to generate extra rental income.
A well-built granny flat may boost a property’s value by 10–30%, depending on location and market demand. For example, a $500,000 home in high-demand areas could see its value rise by $50,000–$150,000. Yet, the addition might also limit the pool of potential buyers for some properties. Despite the savings on permits, connecting utilities remains a significant expense. Water and power hookups can still add thousands to the overall cost of construction.
The rule change simplifies the process of adding a granny flat, cutting both time and upfront expenses. While the unit can increase a property’s value and rental potential, homeowners must still budget for utility connections. The long-term financial impact will depend on local demand and buyer preferences.
