Granny Flats in are a relatively new phenomenon. Many Councils currently allow granny flats to be built, but on the proviso that an immediate family member live in it, whether it’s elderly parents or teenager children. Granny flats can only be built for an immediate family member, not as an investment option.

Before leaping into the deep end planning and building a granny flat, you should enquire to whether the extra dwelling is going to be charged for annual rates and charges. Dependent Accommodation, such as granny flats and sleep outs, are considered development and as such an application must be lodged with council to determine whether it meets the requirements of the Development Plan. Dependent accommodation (i.e. accommodation for dependent persons where the living unit is connected to the same services of the main dwelling) should be developed on the same allotment as the existing dwelling only where:

(a) The site is of adequate size and configuration and greater than 600 m2 in area
(b) The accommodation has a small floor area that does not exceed 60 M2 or 70 per cent of the total floor area of the existing dwelling, whichever is the lesser
(c) Adequate outdoor space is provided for the use of all occupants with a minimum of 100 M2 to be shared by both residences
(d) Adequate on-site car parking, with an additional car parking space provided on the site, which can be used exclusively by the occupant(s) of the dependent accommodation
(e) The building is designed to, and comprises colours and materials that will, complement the original dwelling
(f) The building is attached to the associated main dwelling.