A Fresh Outlook On Granny Flat Development
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Granny flats, or secondary dwellings as they are known as in the Planning world, can allow home owners to keep parents or adult children close by while giving them their own space. They can also be a great way to generate additional rental income.
In NSW, The State Environmental Planning Policy Affordable Rental Housing 2009 paved the way for granny flats across NSW with it becoming permissible for granny flats in most residential areas. This created a boom in the Sydney region particularly established areas such as the Northern Beaches area where rental prices and housing prices were increasing exponentially.
But before you book in your builder, there are a few questions you’ll need to ask and some research to undertake to make your project a successful one.
Don’t assume that because your neighbour has one, you can have one too. Each state and territory has different laws governing secondary dwellings, with rules on block size and dwelling size and the distance you’ll need to leave between boundaries, trees and your existing house.
In NSW the minimum lot size is 450 square metres and the maximum dwelling size is 60 square metres (in most cases).
You can have a chat with one of our planners at Outlook Planning and Development to see whether you can building a granny flat on your site.
If you live in Melbourne, Brisbane or Adelaide and you thought a granny flat was a great way to boost your cashflow, think again.
According to regulations in these cities, only immediate family or a “dependent person” can occupy your granny flat. In some instances, you may be required to remove your granny flat if that person leaves or dies.
There is more choice across NSW, Western Australia, the Northern Territory, the ACT and Tasmania, where Gateway Bank chief executive Paul Thomas says it’s generally acceptable to rent out your second dwelling. Research conducted by Gateway revealed 23 per cent of the country’s granny flats were used to generate rental income.
The cost for a granny flat can range from $20,000 to $200,000-plus.
The cost of a granny flat can vary depending on the purpose of the residence and the quality you’re striving for…
For example for $24,000 you might secure a flat-pack DIY dwelling, $70,000 should cover the installation of a one-bedroom prefabricated dwelling while custom designs start from around $120,000.
Owner and managing director of Newcastle-based Backyard Grannys Alex
Mitchell says the typical price for a one-bedder starts at $90,000, with
a two-bedder starting from $105,000.
“In our experience at Backyard Grannys clients spend on average $130,000 on a granny flat purchase,” he says.
If your home is encumbered and you’re still paying off a mortgage, you’ll need to go through the process of a home loan application.
While you can use your home’s equity to help you apply for a top-up or new loan, you will still need to be able to demonstrate that you have enough income to make the repayments on the new loan.
As part of the application process, you may also need to have your home revalued so be prepared. Have your house and floor plans ready so that your appraiser can get a sense of how much value your granny flat will add to your existing property.
Some banks, including Gateway, have products specifically designed for the development of granny flats. If you choose this option, you may have to refinance your existing mortgage with the new credit provider in order to gain access to the granny flat loan.
An approval for a secondary dwelling generally takes about three months to get approval. This will allow time for creating the concept design, detailed plans, choosing selections, engineering, signing the contract and an official DA Approval of a granny flat.
This will depend on whether you are putting together a flat pack, installing a pre-fabricated unit or building from scratch. Some suppliers claim their dwellings can be erected in as little as six
weeks.
On average a simple granny flat takes 12 weeks to build and up to 15 weeks for more complex builds.
Development approval is obtained through two methods:
Both of these approval methods require different documents to be prepared and without knowledge of the processes you can end up spending more money than anticipated on unnecessary reports or plans.
Before you begin your development journey it is always best to have a chat with a town planner and that is where Outlook Planning and Development can assist. We have helped countless people with their granny flats over the years and have got some difficult granny flat applications over the line with a well drafted statement of environmental effects.
Simply give us a call on 0432 848 467 and have a talk with one of our friendly planners. They can help guide you through the process and assist you in obtaining approval for your granny flat. Their experience will mean that you do it right the first time.
They can help guide you through the process and assist you in obtaining approval for your granny flat. Their experience will mean that you do it right the first time.
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Key Services
Outlook Planning and Development provides valuable planning advice to architects and home owners in the preparation of development applications for new dwelling houses and alterations and additions. The planning advice we provide in the preparation of the development application is valuable in minimising delays in obtaining approval.
We work on multi dwelling housing – town house development projects within the Sydney metropolitan and regional areas, Central Coast and Newcastle/Hunter areas. We provide initial planning advice, preparation of Statement of Environmental Effects and lodgement of the development application. We provide direction for dwelling yields and help get the project over the line.
Boarding Houses are becoming increasingly popular for savy developers. We work on a range of in-fill affordable housing and boarding house development applications made under State Environmental Planning Policy – Affordable Rental Housing 2009 (SEPP – Affordable Housing). We have extensive experience in this area and can provide initial planning advice, preparation of Statement of Environmental Effects and lodgement of the development applications.
We have experience in obtaining approval for secondary dwellings (granny flats) under the provisions of State Environmental Planning Policy (Affordable Rental) and Local Environmental Plans. We work closely with families looking to provide additional rental income or to provide accommodation for relatives in existing houses. We provide initial planning advice, preparation of the statement of environmental effects and lodgement of the development application. We can also assess whether Complying Development Certificate is a viable approval option.
We work on Seniors Living Developments made under State Environmental Planning Policy – Housing for Seniors or People with a Disability 2004 ( SEPP – Seniors Living). We provide initial planning advice, Statement of Environmental Effects and lodgement of the development application. Where a site compatibility certificate is required from Department of Planning we have experience in the preparation and lodgement of this as your first step in the approval process.
Rezonings are the pathway to progress within the property market. It is the way that unsuitable land becomes highly valued land. We can help you turn that piece of rural land into a residential land release.
We work on a range of projects including large sites accommodating large retail and commercial floor area with residential units to small in-fill sites. We provide initial planning advice including an assessment under State Environmental Planning Policy 65 (SEPP 65) and the Apartment Design Guide (ADG), the preparation of Statement of Environmental Effects and lodgement of the development application.
Has your neighbour lodged a development application and his new house is going to block out the sun or destroy your view? We can prepare a highly detailed development objection letter to Council on your behalf. We can help you voice your opinion on the development using our experience, case law and principles.
With the population of Sydney growing and many parents returning to work full time the demand for childcare centres is increasing. We provide comprehensive planning services for child care centres and have worked on development applications for centres ranging in size and for a variety of providers. We prepare development applications under the Children (Education and Care Services) Regulations 2012 and the State Environmental Planning Policy (Education Establishment and Child Care Facilities). We work on child care centre applications all over NSW.
We provide planning services for the development, use and fit-out of commercial and industrial premises. Our services cover a range of commercial facilities including health and medical facilities, commercial premises, retail premises and restaurants. Industrial development applications include car repair facilities, motor showrooms, transports depots, warehouse-showrooms, waste transfer and recycling facilities.
We provide planning services for the development of recreation facilities. We have worked with many organisations in the preparation and approval of development applications. We have obtained approvals for a range of gymnasiums and indoor recreation facilities including rock climbing and children’s play facilities.
We provide planning services for the redevelopment – refurbishments of hotels and other licenced premises and restricted premises. We provide initial planning advice, Statement of Environmental Effects and lodgement of the development application.
“Architecture is the very mirror of life. You only have to cast your eyes on buildings to feel the presence of the past, the spirit of a place; they are the reflection of society.”
– I. M. PEI
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