Is A Granny Flat Part of your Downsizing Plan?

Are you or an elderly relative contemplating downsizing to simplify your lifestyle or move closer to family?

Granny flats- also known as DPUs (Dependent Person’s Unit) are becoming a popular housing option in Australia.

Designed for one or two people, a granny flat is a self-contained dwelling, usually located on the grounds of a single-family home. Most are detached, but can also be self-contained accommodation within another dwelling.

Granny flats can be custom-built, pre-fabricated, transportable or flat-pack designs.

Regulations around granny flats vary from state to state and from council to council. All granny flats must comply with both the Building Code of Australia and any relevant Australian Standards.

Rental Arrangements and Tax Implications

In Queensland, the rules on the size of granny flats, requirements for separate parking and entryways, and who you can rent a granny flat to vary between regions and councils.

Keep in mind – you will need to pay income tax on any rent you receive from renting out a granny flat.

You should also engage a quantity surveyor to prepare a tax depreciation schedule when the granny flat is first built, in order to maximise your tax benefits as the owner of an investment property.

If you sell your home, part of the sale price will be subject to capital gains tax. Always get independent advice from a qualified tax accountant.

The REIQ has some useful information on granny flats.

Is building a granny flat the same as building a house?

When designing a granny flat, think about who will be using it. Will it need ramps, railings or stairs? Will it need to be able to accommodate a wheelchair or other mobility device?

Access to sewerage, stormwater drains, easements and connection to utilities also need to be considered in the same way as when building a house.

Take privacy into account – consider a side access gate and leave enough space and greenery to create a decent amount of space between the granny flat and the main dwelling.

Most builders will deal with your local council on your behalf when it comes to the approval process. This can take six to eight months.

Construction of a granny can take a few weeks up to a few months, depending on the type of construction method and the size of the dwelling.

How much does it cost to build a granny flat?

Costs will vary depending on the type of structure you build – a dwelling built from scratch by a builder will cost more than a pre-fab structure, but kits can have a lot of add-on expenses not included in a basic quote.

When calculating the cost, factor in council fees, connection of utilities and any special design features you may need.  

On average, a one-bedroom granny flat will cost between $80,000 and $120,000. The total cost will depend on the materials and height of the dwelling, any extra plumbing required, the area built on, and any extra landscaping or accessibility features.

It’s a good idea to get a couple of quotes from different builders – make sure they are quoting on the same type of building and check the quote carefully if there are significant differences in cost.

Is a granny flat part of your downsizing plan?

Perhaps you are planning to move to aged care, a smaller home, or to a retirement facility.

Don’t let the stress and worry of a move get the better of you.

At Blue Lighthouse Relocations, we make moving house simple and stress free.

We plan. We pack. We move. We unpack. We set up!

As an established and growing provider of moving and relocation services throughout south-east Queensland, we offer services to suit a wide range of needs:

  • Aged Care Relocations
  • Retirement Relocations
  • Downsizing and Decluttering
  • Relocation Planning
  • House Relocations
  • Same-Day Move Service
  • Deceased Estate Clearances
  • Property Clearance & Sale Preparation
  • Mobile Storage                                                                                                                                                                                                                                                                                           

Our initial consultation to determine your needs is completely free of charge.

Get in touch today – we look forward to helping you.

Call us on 1300 158 432

Email our friendly relocations team on info@bluelighthouse.com.au

Visit our website and send us a free quote request.