Granny flats, also known as accessory dwelling units (ADUs), are self-contained small dwellings that are built in the backyard of a primary residence. In Australia, granny flats were traditionally used to house elderly parents or grandparents who needed to be close to their families. However, in recent years, they have become popular investment properties. Superior Choice Granny Flats Perth have put together this article on the reasons why Australians are turning to granny flats to make money. 


If you’re considering building a granny flat to take advantage of the benefits we’ve discussed, consider using Superior Choice Granny Flats. With years of experience in the industry, we offer a range of high-quality granny flat designs to suit your needs and budget. Contact Superior Choice Granny Flats today to learn more about how we can help you build a granny flat that is perfect for your property. 

Regulatory changes 

In recent years, many local councils in Australia have made it easier for homeowners to build and rent out granny flats. Changes to zoning laws and building codes have made it possible for homeowners to build a granny flat on their property without the need for a separate title or council approval. This has led to an increase in the number of granny flats being built across the country. 

High cost of housing 

The high cost of housing in Australia is another reason why many homeowners are turning to granny flats as investment properties. In many major cities, the cost of buying a home has skyrocketed in recent years, making it difficult for many people to enter the property market. By building a granny flat on their property and renting it out, homeowners can generate an additional income stream that can help them pay off their mortgage faster or save for other financial goals. 

Rising popularity of short-term rentals 

The rise of short-term rentals, such as Airbnb, is another factor driving the popularity of granny flats. With the increasing demand for short-term rentals, homeowners are looking for ways to take advantage of this trend. Granny flats provide an opportunity for homeowners to generate extra income by renting out their property as a short-term rental. This is especially true in popular tourist destinations where there is high demand for short-term rentals. 

Flexible living arrangements 

Granny flats also offer flexible living arrangements for homeowners. For example, homeowners can rent out the granny flat to generate extra income or use it as a space for family members or friends to stay. Additionally, homeowners can use the granny flat as a home office, art studio, or other types of living spaces. This flexibility is especially attractive for homeowners who are looking for a way to maximise the use of their property. 

Increased property value 

Building a granny flat can increase the value of a property. With a granny flat on the property, a homeowner can potentially sell their property for a higher price. Additionally, having a granny flat on the property can make the property more attractive to potential buyers who are looking for additional income streams or flexible living arrangements. 

Affordable and low-risk investment 

Building a granny flat can be an affordable and low-risk investment compared to other investment properties. Typically, building a granny flat costs less than buying an investment property, and the homeowner can expect a steady stream of rental income from tenants. The construction of a granny flat can be completed in a matter of months, making it a quick way to add value to your property. 

Additionally, granny flats have a low vacancy rate due to the high demand for affordable rental properties. They also tend to attract long-term tenants who are looking for affordable and convenient housing options, which can provide stability to your rental income. 

Demographic changes 

As Australia’s population ages, there is a growing demand for smaller, low-maintenance living spaces. Granny flats offer a convenient and cost-effective solution for retirees who want to downsize or live closer to family members. Many retirees prefer to live in a granny flat as it offers them independence and privacy while still being close to their loved ones. 

Moreover, granny flats can be customised to meet the specific needs of the elderly, with features like wider doorways and wheelchair access, which can make them ideal for older tenants. 

Increased demand for affordable housing 

With housing prices continuing to rise across Australia, there is an increasing demand for affordable housing. By building a granny flat, homeowners can offer a more affordable rental option for tenants who may not be able to afford larger properties. This can include students, single-parent families, and low-income earners. 

Granny flats can be designed to maximise space and are typically equipped with all the necessary amenities, including a kitchen, bathroom, and bedroom. This makes them an ideal solution for tenants who are looking for a comfortable and affordable living space. 

Environmental sustainability 

With the increasing focus on environmental sustainability, building a granny flat can be a more sustainable housing option. Granny flats are typically smaller in size and require less energy and resources to build compared to larger properties. They also use fewer resources to heat and cool, which can help reduce energy bills and carbon emissions. 

Moreover, some granny flat designs incorporate eco-friendly features such as solar panels and rainwater harvesting systems, which can further reduce the environmental impact of the property. As environmental awareness continues to grow, granny flats are becoming an increasingly attractive housing option for those who are conscious about their carbon footprint. 

Multigenerational living 

With the ageing population in Australia, many families are choosing to live together in multigenerational households. Granny flats offer an ideal solution for families who want to live together while maintaining some privacy and independence. Homeowners can build a granny flat to house elderly parents or adult children, or to generate an additional income stream by renting it out. 

Increased privacy 

Many homeowners are looking for ways to increase their privacy without sacrificing their living space. Granny flats provide an opportunity for homeowners to create a separate living space that is self-contained and offers a level of privacy that is not possible in a shared living space. 

Home business 

Home-based businesses are becoming increasingly popular in Australia. A granny flat can be used as a dedicated workspace for a home-based business, allowing homeowners to separate work and personal life. This can be an attractive option for entrepreneurs or freelancers who want to save on the cost of renting a separate office space. 

Increased rental yield 

Rental yields for granny flats can be higher than for traditional investment properties due to the lower construction and maintenance costs. A well-designed and well-constructed granny flat can command a high rental yield, especially in areas where rental demand is high. 

Low maintenance 

Granny flats are relatively low-maintenance compared to larger homes, which can be appealing to homeowners who don’t want to spend a lot of time or money on upkeep. Additionally, granny flats are often built with durable materials that require less maintenance and repair over time. 

Extra storage 

Granny flats provide an ideal solution for homeowners who are looking for extra storage space. With the increasing cost of renting external storage units, building a granny flat can be a cost-effective way to create additional storage space on your property. Whether you need storage for tools, equipment, or other items that may not have a place in the main house, a granny flat can provide the extra space you need.  

Granny flats can be designed with specific storage needs in mind, such as shelving, hooks, and drawers to maximise the use of the space. Homeowners can also use the granny flat to store seasonal items, such as holiday decorations, camping gear, or sports equipment. This can help to keep the main living space clean and clutter-free, making it more comfortable for the family to enjoy. 

Home gym or workout space 

With the increasing focus on health and wellness, many homeowners are building granny flats as home gyms or workout spaces. These self-contained units provide a private space for exercise and fitness activities without having to leave the property. 

Additional income for retirement 

Many Australians are looking for ways to supplement their retirement income, and building a granny flat can provide a steady stream of rental income that can help support them in their later years. 


Granny flats have become a popular way for Australians to make money by renting out these units as investment properties. Regulatory changes, the high cost of housing, the rise of short-term rentals, flexible living arrangements, and increased property value are all factors driving the popularity of granny flats. As a result, many homeowners are considering building a granny flat on their property to take advantage of these benefits. 

If you’re considering building custom granny flats Perth, consider using the services of Superior Choice Granny Flats granny flat builder, who can provide high-quality and affordable granny flat designs and construction services. Contact Superior Choice Granny Flats today to learn more about how they can help you build your dream granny flat.