What is Granny Flat?
A granny flat (technically a secondary dwelling) is a smaller, self-contained residence on the same title as a primary home. Used as extended family accommodation, Airbnb income, or rental yield boost.
Why it matters for you
Adding a granny flat can lift rental yield by 40–60% without the costs of a second land purchase. Lenders assess secondary dwellings on the same title as a single asset — your serviceability may count the additional rent. Council rules vary widely.
Last updated: April 2026