by Granny Flat Builder | Jun 24, 2026 | Granny Flats
With interest rates in Australia easing, now is a great time to look at building a granny flat — not just for the extra living space, but for the investment potential. Let’s walk through some example numbers so you can see exactly how much it could cost (and save) you each month. Aplus are starting new build Granny Flats with smart investors every week. Have a look at this custom Granny Flat in San Remo earning 24k per year, this CDC Granny Flat in Newcastle making $27k per year, or this one in Metford generating $26k per year.
The Example Build
Aplus Granny Flats prices start at around $200k in New South Wales and $220k in the ACT. We’ve used a sensible illustration of $250k for our worked example – but its highly possible for you to outlay an even lower initial capital cost. We can do a ballpark quote for you anytime here.
- Build cost: $250,000
- Deposit: 20% ($50,000)
- Borrowed amount: 80% ($200,000) via equity from your existing home
- Interest rate: 3.99% p.a. (variable, interest-only for illustration)
Monthly Repayments at 3.99%
For a $200,000 interest-only loan at 3.99%:
Annual interest = $200,000 × 0.0399 = $7,980
Monthly interest = $7,980 ÷ 12 ≈ $665
Potential Rental Income
As evidenced by our examples in the introduction, a well-built, 2-bedroom granny flat in NSW or the ACT can often rent for $400–$550/week, depending on location and features.
Let’s work on the lower end:
$400/week × 52 weeks = $20,800 per year
That’s about $1,733 per month in gross income.
Before-Tax Cashflow
- Income: $1,733/month
- Interest cost: $665/month
- Positive cashflow before tax: ~$1,068/month
The Tax Advantage – Depreciation
If your granny flat is built as a rental property, the Australian Tax Office (ATO) allows you to claim depreciation on the structure and fittings.
Capital works deduction: $250,000 × 0.025 = $6,250/year
Plant and equipment deduction: Sometimes another $2,000–$4,000/year early on
To maximise your tax deductions, it’s important to have a licensed quantity surveyor prepare your depreciation schedule. The Australian Tax Office requires a professionally prepared report to substantiate your claims, and a qualified surveyor can ensure nothing is missed — from capital works to plant and equipment items. Aplus works with trusted, accredited surveyors and can put you in touch with the right professionals to get your schedule completed quickly and accurately. A report will cost you around $600 – another tax deduction perhaps – but is well worth the annual deduction you can get.
What That Means at Tax Time
If your rental income is $18,200 and your interest cost is $7,980:
Operating profit before tax: $10,220/year
Now subtract depreciation:
Lets estimate $7,000 depreciation = $4,220 taxable profit
If you’re on a 32.5% marginal tax rate, tax payable = ~$1,371.50.
That’s much lower than without depreciation — and in some scenarios (with maintenance and other deductible expenses) you could actually report a loss for tax purposes while still being cashflow positive.
Why the Lower Interest Rate Matters
At the previous rate of 5.5%, the same $200,000 loan would cost:
$200,000 × 0.055 = $11,000/year interest = $917/month.
That’s $252 more per month compared to 3.99%. Over a year, that’s $3,024 saved — enough to cover several months of insurance, maintenance, or even part of your rates.
The Bottom Line
With today’s interest rates, a well-located granny flat can:
- Cover its own loan repayments
- Generate extra cashflow
- Deliver significant tax deductions through depreciation schedules
If you’ve been thinking about building, the numbers are looking better than they have in years.
This is not specific financial advise and is provided for illustration purposes only. You should always consult your tax and financial advisors before making a big decision
by Granny Flat Builder | Jun 24, 2026 | Granny Flats
With rents climbing year after year, many young Australians are trapped paying off someone else’s mortgage instead of building their own future. But there’s a smarter way: instead of sending $600—or more—every week to a landlord, your kids could be contributing to an asset that grows your family’s wealth.
Building a granny flat in your backyard lets you do exactly that. Your children get affordable, stable housing, while you increase the value of your property and even generate extra income. It’s a win-win that helps everyone save money and plan for the future. With 2025 Interest rates dropping, now is a good time to look at this opportunity.
For many families, this simple step turns a costly rental situation into a wealth-building opportunity — and it’s easier to make the numbers work than you might think.
The Example Build
- Granny flat build cost: $250,000
- Deposit: $50,000 (20%)
- Borrowed amount: $200,000 via equity from your home
- Interest rate: 3.99% p.a. (variable, interest-only for illustration)
Loan Repayments at 3.99%
- $200,000 × 0.0399 = $7,980/year in interest
- Monthly interest = $7,980 ÷ 12 ≈ $665/month
What Your Kids Pay Instead of Rent
If your son or daughter pays $600/week for the granny flat:
- $300/week × 52 weeks = $15,600/year
- That’s $1,300/month
Your Cashflow
- Loan cost: $665/month
- Child’s contribution: $1,300/month
- Surplus: ~$635/month (before tax)
This surplus can cover insurance, maintenance, or offset your own mortgage, while still providing an affordable living option for your child.
What They Save
By moving from $600/week rent to $300/week contribution:
- They save $300/week, which totals $15,600/year
- Over 5 years, that’s $78,000 saved, not including bond deposits, moving costs, or other rental expenses
Plus, that’s money helping build equity in your property and family assets, not someone else’s.
The Tax Advantage for You
If you later decide to rent the granny flat to someone else, you can claim depreciation:
- Capital works deduction: $250,000 × 2.5% = $6,250/year
- Plant & equipment deduction: $2,000–$4,000/year in early years
That’s up to $10,000/year in deductions, reducing your taxable income. Check with a licensed quantity surveyor for a full depreciation schedule and ensure compliance with the ATO.
Note: While a granny flat rented to family is still considered an income-earning asset, you should consider the capital gains tax implications if you later sell the family home. Professional advice is recommended.
Future Flexibility
Once your kids move out, you have options:
- Rent it out at market rates ($400–$550/week in many areas)
- Use it for extended family or guests
- Sell your home with the granny flat as a value-adding feature
The Bottom Line
A granny flat isn’t just a building — it’s a financial tool that:
- Gives your kids a stable, affordable place to live
- Lets you recoup costs and even profit while helping them
- Becomes a long-term asset for your family’s future
With smart planning, your granny flat can turn rising rents from a drain on your family into a wealth-building opportunity — keeping your kids housed and contributing to a brighter financial future.
This is not specific financial advice and is provided for illustration purposes only. You should always consult your tax and financial advisors before making a big decision
by Granny Flat Builder | Jun 24, 2026 | Granny Flats
Caring for ageing parents often comes with tough choices. Do they stay in the family home, move into residential aged care, or find a way to live independently while still being close to family? With major changes to Australia’s aged care system now underway, building a granny flat could be one of the smartest and most supportive options. Building a granny flat may even now cost less thanks to several interest rate cuts, which make loans cheaper and more manageable
1. Aged Care Policy Is Shifting to ‘Care at Home’
From July 2025, the Federal Government will begin rolling out the new Support at Home Program, which replaces the existing Home Care Packages and Short-Term Restorative Care.
The reforms are designed to:
Expand support for services delivered at home (like nursing, cleaning, shopping, or mobility aids).
Increase the number of funding levels from four to eight, with more generous budgets for higher-care needs.
Guarantee older Australians will be “no worse off” as the system changes.
Source: Department of Health – Support at Home reforms
What this means for you: More people will be supported to stay living at home — and if your parents are in a granny flat on your property, that care can be delivered there just as easily as in their own standalone home.
2. Extra Home Care Packages Are Being Fast-Tracked
The government has also announced 20,000 additional Home Care Packages by the end of 2025, as part of a broader commitment to roll out 43,000 places by 2026.
This is good news for families on the waiting list. It means your parents are more likely to access the in-home support they need — whether that’s personal care, meals, or allied health services — without having to consider moving into a nursing home.
Source: The Guardian – Labor brings forward 20,000 in-home aged care places
Pairing this funding with a well-designed granny flat makes it easier to combine government-funded care with the day-to-day support you already provide as family.
3. Avoiding Hospital Delays and Residential Aged Care
In NSW, thousands of older people remain in hospital beds longer than necessary because there aren’t enough suitable home care or aged care places available. This not only impacts the health system but also delays people returning to a familiar environment.
Source: Daily Telegraph – Shock figures expose NSW hospital discharge delays
A granny flat on your property gives your parents a safe and private space to come back to, while still being close enough for you to help — and new policy investment is aimed precisely at making these transitions smoother.
4. A Granny Flat Future-Proofs Your Family’s Living Arrangements
Even beyond the health system changes, granny flats bring practical, long-term benefits:
Independence with connection: Parents have their own space, but support is close at hand.
Flexible use over time: If circumstances change, the granny flat can later become a rental, a guest home, or a place for grown children.
Financial advantage: Building a granny flat often costs less than years of residential aged care fees and may add value to your property.
With the Federal Government reshaping aged care to prioritise support at home, the case for building a granny flat has never been stronger. It aligns with the direction of policy, gives your parents independence, and ensures they can access government-funded care in a familiar environment — all while keeping family close.
Thinking about building a granny flat for your parents?
For families weighing up the decision, it’s worth exploring not just the government reforms but also the practical side of building for ageing parents. We’ve shared advice on weighing up the costs and benefits of granny flats, tips on designing with elderly relatives in mind, and even guidance on how to start the granny flat conversation with your parents. Together with the government’s push to expand care at home, these insights show why building a granny flat for your parents is not only viable but one of the most supportive choices you can make.
The Aplus team can help you assess your property, design for comfort and accessibility, and navigate council requirements. Contact us.
by Granny Flat Builder | Jun 24, 2026 | Completed Granny Flats, Granny Flats, Newcastle
Newcastle Granny Flat Case Study
This granny flat was completed in Belmont North, a suburb of Greater Newcastle. The clients were a couple looking to build a new home to move into. They chose one of our two bedroom granny flat designs, The Gemini, which they modified by extending out the porch.
The distinctive feature of the Gemini’s design is the strategic positioning of the two bedrooms at each end of the granny flat, ensuring privacy for its occupants. Each bedroom comes with its own ensuite and walk in robe, creating the option for a comfortable guest stay. The living and dining area is nestled between the bedrooms and can extend to a patio, facilitating a seamless transition between indoor and outdoor spaces. This granny flat features a contemporary L-shaped kitchen, which the clients modified by adding a dishwasher and making slight adjustments to the cabinetry. The clients also added carpet to the bedrooms but were otherwise happy with our standard inclusions.
The clients block has a Bushfire Attack Level of 19 so there were a few upgrades needed to ensure bushfire compliance. The cladding was upgraded, eaves vents added, and a specific entrance door included. The clients originally signed for a concrete slab build however we were able to change their construction type at the last minute. We went ahead with bearers and joists with screw piers due to a difficult site that required quite a bit of retaining.
The Gemini granny flat is perfect for long and narrow backyards and was a great addition to this block which already contained a 4 bedroom house. The clients now have the opportunity to make the most of their money by renting out the original dwelling while they live comfortably in the granny flat, the ideal combination of style, practicality and coziness.
Aplus Newcastle Granny Flat Review
Here is the five star feedback these clients left on Google for our work on this Newcastle granny flat:
“The staff from Aplus, are second to none. Everything they’ve said they’d do, they’ve done. We’d like to mention our appreciation of some of the staff. The sales staff with Duke, the client administrator in Crystal, were both friendly, excellent and professional, also in hand at all times. The accounts department were always on the ball, contactable and helpful, thanks Louize. Our build team, the project manager Dario, exemplary, great guy to work with. Of the builders we’d like to mention Michael Villar, every time he went over and above and really cared about his work.
The contractor guys were all professional in the way they worked. Overall a very good experience. There will always be a few hiccups in any construction, but as a team, Aplus try to solve these issues every time.
Overall our experience with Aplus leads us to feel we definitely went with the right company. We love our granny flat, and we’re certain that if whoever reads this review, choose to go with this company, they too will love the end product”.
Thanks guys
Cheers, Chris and Mandy
Stockton Granny Flat Project Gallery
Local Granny Flat Builder Newcastle
Belmont North, a suburb of Greater Newcastle, offers a perfect blend of convenience and community. Nestled between the beach and the lake, it’s close to the ever-expanding business district of Belmont and a short drive to Newcastle CBD. Whether you’re a professional, single, family or retiree, Belmont North provides a lifestyle that caters to all, a perfect place to invest in a granny flat.
For over two decades, Aplus has been the trusted name in crafting exceptional granny flats in Newcastle. As a family-run business, we take pride in our extensive experience and dedication to delivering high-quality living spaces tailored to your needs.
Aplus offer a diverse range of stylish granny flat designs and floor plans to suit every taste and requirement. From custom designs tailored to your specific needs to inclusive packages that exceed expectations, we’re committed to bringing your vision to life. Plus, with our price beat guarantee and unwavering support for property investors throughout the Newcastle region, you can trust us to deliver results that exceed your expectations.
Whether you’re an investor seeking to maximise returns, a parent looking to accommodate a growing family, or a retiree planning for the future, Aplus Granny Flats is here to make your granny flat project a reality.
Download the Granny Flat Design Collection for Newcastle
Download the granny flat design collection
by Granny Flat Builder | Jun 24, 2026 | Central Coast, Completed Granny Flats, Granny Flats, The Willow
When Lyndal decided to add a granny flat to her property, she wasn’t building for tenants — she was creating a place to call home. Her brief was simple but specific: a light-filled, easy-to-maintain space that offered the same comfort and quality as a main residence.
After exploring Aplus’s range of designs, Lyndal was drawn to The Willow — a popular two-bedroom layout celebrated for its smart use of space and easy flow between the kitchen, dining and living zones. Working closely with the design team, she chose to modify the plan, removing one bedroom and resizing the home from 60m² to 50m². The change fit the block perfectly, kept the build costs down, and delivered exactly what she needed — a comfortable, well-proportioned home that felt just right for her lifestyle.
A Design Tailored to Everyday Living
Built by B&J using a timber frame and truss system, Lyndal’s granny flat took the standard Willow and reimagined it with a striking skillion roof and raked ceiling through the kitchen, living, and dining area. These architectural changes instantly opened the interior, allowing natural light to flood the space and giving the home an airy, spacious feel well beyond its footprint.
To ensure longevity and performance, Aplus’s team also implemented a stormwater dispersion trench, managing water flow efficiently while keeping the site tidy and compliant with CDC requirements.
Inside, Lyndal made a series of thoughtful upgrades that elevated the home’s finish. She chose a full-height tiled bathroom, upgraded vanity and shaving cabinet, and premium fittings — including a new toilet, basin tap, and a custom shower niche for both function and style. A dishwasher was also added to make everyday life a little easier.
Granny Flat Built Under CDC Approval
Because the site met all relevant criteria, the project was approved as a Complying Development Certificate (CDC) — streamlining the approval process and reducing wait times. This pathway allowed Lyndal to move from design to construction quickly, confident that all compliance requirements were met from the start.
A Compact Home with a Big Feel
The finished home feels bright, modern, and effortlessly comfortable — exactly what Lyndal envisioned. The raked ceiling and open plan design make the living area the heart of the home, while the upgraded finishes bring a sense of luxury and personal style.
Every detail was considered, from the smooth floor transitions to the carefully selected fittings and fixtures. The result is a space that’s not just practical, but truly inviting — a home built for living, not compromise.
Blackwall Granny Flat Gallery
Granny Flats in Blackwall, Central Coast
Situated near the water between Ettalong and Woy Woy, Blackwall is one of the Central Coast’s most desirable pockets for secondary dwellings. With generous block sizes, established homes, and strong rental demand, it’s an area where a well-designed granny flat can add real value — whether for family use or investment.
Projects in Blackwall benefit from Aplus’s local knowledge of Central Coast council requirements, block layouts, and coastal construction conditions. Many sites in the region are eligible for Complying Development (CDC) approval, allowing faster turnarounds from design to build — just as Lyndal’s project demonstrated.
For homeowners considering a granny flat on the Central Coast, Aplus offers the ideal balance of quality construction, local expertise, and personal service — helping each design fit both the site and the lifestyle it’s built for.
Explore our granny flat designs or book a free site assessment to start planning your granny flat in Katoomba today.
Why Choose Aplus Granny Flats?
Building a granny flat is a big decision, and choosing the right builder makes all the difference. At Aplus, we pride ourselves on being the builder that clients can trust and rely on.
- Proven Track Record – With projects completed across the Central Coast, Illawarra, Canberra, and beyond, our portfolio speaks for itself.
- Clear Communication – Clients receive regular updates so they always know what stage their build is at.
- Efficient Timelines – We set realistic build times and stick to them, even when projects involve unique challenges.
- Quality First – From strong steel frames to thoughtful finishes, every detail is handled with care.
- Support at Every Stage – From the first site assessment through approvals and construction, our team makes the process straightforward.
Many clients, like John in Dapto, come to Aplus after experiencing delays or setbacks elsewhere — and find the stability, organisation, and workmanship they were looking for.
Book a free site inspection for your Granny Flat on the NSW South Coast – or anywhere in NSW or ACT
Whether you’re creating a rental investment, a space for family, or a future-proof addition to your property, Aplus Granny Flats can help you achieve it. From DA submissions to final handover, our team delivers quality construction, honest guidance, and real value for your investment.
by Granny Flat Builder | Jun 24, 2026 | Granny Flats
If you’ve ever dreamt of escaping the hustle and bustle of city life and embracing the tranquillity of rural New South Wales, building your own accommodation business might be the perfect venture. With the picturesque landscapes and welcoming communities, rural NSW provides an ideal backdrop for establishing tourist and visitor accommodation. Whether you’re envisioning a cosy bed and breakfast or a cluster of serviced apartments, here’s a step-by-step guide to look at how Granny Flats could help you turn your dream into a prosperous reality.
Understanding Tourist and Visitor Accommodation in Rural NSW
Tourist and Visitor Accommodation is a building or buildings that provide temporary or short-term accommodation on a commercial basis. This type of development can include the following:
- Backpackers’ accommodation
- Bed and breakfast accommodation
- Farm stay accommodation
- Hotel or motel accommodation
- Serviced apartments
Tourist and Visitor Accommodation is generally permitted in rural and environmental zones and the requirements and will vary between LGAs.
On some allotments this can be a viable option to build multiple buildings that may be rented out as short-term accommodation, providing the property owner with a prosperous business opportunity.
Before diving into your project, it’s crucial to familiarise yourself with the zoning regulations. Rural zones like RU1, RU2, RU4, and environmental zones such as C3 and C4 are generally amenable to this type of development. However, as noted, specific requirements may vary between Local Government Areas (LGAs).
Navigating Development Approvals (DA) and Pre-DA Process
While the potential for a prosperous business is vast, it’s essential to note that a DA is always required for tourist and visitor accommodation in rural and environmental zones. To streamline the process, consider engaging in a Pre-DA consultation. This involves preparing concept plans and meeting with the Council to gauge the feasibility of your project. Remember, each LGA may have its own set of rules and regulations, so it’s wise to conduct thorough research and communicate with the local Council early in the planning stages.
Before taking the plunge, prospective accommodation business owners should conduct in-depth research and initiate conversations with the local Council. Understanding the specific permissibility and requirements in your chosen location is crucial. This step ensures that your vision aligns with the zoning regulations, setting the foundation for a smooth and successful development process.
Partnering with Aplus for Planning, Design, and DA Work
Once you’ve explored the possibilities and gathered essential information, engaging a professional team can significantly simplify the planning, design, and DA processes.
Aplus, with its wealth of experience, can collaborate with you to bring your vision to life. From concept plans to the final DA submission, their expertise can navigate the intricacies of rural development, turning your dream accommodation business into a reality.
Building your accommodation business from scratch in rural NSW requires careful planning, adherence to zoning regulations, and effective communication with the local Council. By conducting thorough research, initiating early conversations, and collaborating with experienced professionals like Aplus, you can transform your dream into a flourishing business venture. The tranquility of rural NSW awaits, and with the right approach, your accommodation business can become a welcoming haven for travellers seeking a taste of the countryside.
