Get your granny flat investment up and running in as little as six months with trusted local builder

It’s no secret that Perth is facing a significant housing shortage driven by strong population growth combined with a stretched construction industry unable to deliver the amount of homes needed to meet demand.

One solution to supply more housing and capitalise on this elevated demand is to add ancillary dwellings to existing properties.

Homeowners can utilise their own land to build a granny flat and generate a strong rental return. Many factors in the current property market make this a sound investment opportunity, as rental vacancy rates and housing stock levels remain low.

In the case of Summit Homes Granny Flats clients Eddie and Jane Vahldieck, adding a granny flat to their property not only added an asset to their home – it enabled them to transform their underutilised backyard area into something meaningful.

When their adult son returned from years of travelling and was ready to settle down with his partner, they saw the perfect opportunity to add an ancillary dwelling to their Cloverdale property. Their 847sqm block, zoned R20/R40, offered plenty of space, and their old backyard shed had gone unused.

“Building a granny flat has definitely been the right thing to do – not just for my son but also for our family’s future,” Mr Vahldieck said.

Replacing the shed with a granny flat gave their son the independence of his own home while keeping him close to family.

Mr and Ms Vahldieck made lifestyle the focus of their design. The granny flat was carefully positioned to capture leafy parkland views, morning sunlight and the sound of local birdlife while also ensuring privacy for both households.

“When we thought about the cost, we never saw it as an expense,” Mr Vahldieck said.

“It’s adding an asset to the place and really enhancing the value of the property.”

The granny flat has proven to be a smart investment, with rental interest reaching as high as $720 per week and the overall property value significantly enhanced.

“Using your own land is an excellent housing supply solution, with multiple uses available,” Summit Homes Granny Flats Sales and Operations Manager Adrian Sutton said.

“These include multi-generational living, a studio or an office space, a teenager’s retreat or even Airbnb-style accommodation.

“With changes to the R Codes, there is no minimum lot size requirement for a granny flat and this opens up your options.

“It is not uncommon for parents to build a granny flat for their children to move into.

“This is a trend we are seeing at Summit Homes Granny Flats, as it has become increasingly challenging for young people to enter the property market.

“About 50 per cent of our clients are investors looking to generate a rental income and the rest are looking to house family members – be it a relative, parents or a child.”

As a result of the legislation changes made last year, granny flats can also be incorporated into duplex, triplex or other grouped developments – subject to site coverage and setback rules, but there is no longer a lot size restriction, providing an additional opportunity to boost rental return.

Technically, any single house or grouped dwelling can accommodate a fully detached granny flat in the rear yard, however these cannot be separately titled.

This means granny flats can be accommodated on a greater number of properties.

“We can build granny flats as small as 50sqm, although the majority we build are 70sqm,” Mr Sutton said. “These are essentially smaller-scale homes built to the same quality and finish as our larger homes – we use the same fixtures, finishes and appliances.

“Clients are impressed when they walk through our display granny flat because it feels just like a normal home.

“Our most popular granny flat option is about $250,000. The rental yield is quite high – around $550 per week depending on the location – making a granny flat a very good investment.

“With the addition of fencing to increase privacy and a separate driveway or carport, granny flats are a smart way to provide housing to the current market – especially given how low the rental vacancy rate is.

“Lots of clients use their equity position to build a granny flat and then rent it out.

“You have more control over a dwelling in your own yard, which is appealing for our investor clients.”

Fully framed granny flats can be completed in six months, which gets the product on the ground in a short space of time.

This means clients can start earning a rental income sooner.

“Following the update to state legislation around the construction of granny flats, as a business, we looked at ways to build granny flats much faster with uncompromised quality,” Mr Sutton said.

“We offer clients the option of using fully framed construction with TRUECORE steel and MasterWall instead of traditional double brick to give us that 50 per cent reduction to the build timeframe.

“We still offer traditional double brick, if this is something the client prefers.”

Summit Homes Granny Flats is Perth’s trusted builder, delivering high-quality designs for your block and lifestyle, with build times reduced to six months using steel-frame construction.