All Topics / Creative Investing / Teenage retreats and granny flats

Viewing 15 posts - 1 through 15 (of 15 total)
  • Profile photo of KimberlyKimberly
    Join Date: 2010
    Post Count: 44

    Recently I had this random thought of perhaps purchasing a teenage retreat (~ 35k AUD) or granny flat (~ 70k AUD) to put out the back of my house in the garden (which is quite large) and then renting out the place so get some cash flow through it.

    Some ideas I had were:

    1. Could rent it out to permanent tenants on year to year contract

    2. Could rent out rooms via airbnb or advertise to university students doing exchange etc. ($30-50 dollars per night?)

    An example of the type of building can be found here:

    The teenage retreat is much cheaper but does not have stove/heating/cooling so I'm still trying to figure out how to get around that.  I guess would be more suited to the airbnb type person.

    A few other things to consider:

    1. Tax implications, tax on selling my property having had it been both PPOR as well as investment

    2. Having strangers wondering in and out – good or bad thing?

    Just interested in the thoughts of other creative investors out there.  Thanks.

    Profile photo of RPIRPI
    Join Date: 2012
    Post Count: 308

    Depends on area it is in.  

    Non-complying use under Brisbane City Plan and they are running a huge operation on this at present.



    RPI | Certus Legal Group / PRO Town Planners
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    Property Lawyer & Town Planner

    Profile photo of KimberlyKimberly
    Join Date: 2010
    Post Count: 44

    The companies that sell the buildings include the city council permit in the cost.

    Profile photo of Made_ManMade_Man
    Join Date: 2013
    Post Count: 35

    You can make a private entry and fence a section of the backyard for them. That way you will not have strangers wondering in and out

    Profile photo of BrazenBrazen
    Join Date: 2010
    Post Count: 47

    I'm pretty sure that unit you linked is not BCA compliant for a habitable dwelling. Remember that granny flats must meet BASIX (energy efficiency) regulations too. 

    This means:

    1. R 3.0 insulation to walls and roof plus R1.5 to sub-floor. This will vary depending on region.

    2. 2.4 metre internal wall heights. If it's a cathedral ceiling it must have an 'average' wall height of 2.4 m.

    3. The backyard cabin (granny flat) must have a BASIX compliant hot water system, a rainwater tank and insulation.

    There are of course other building code requirements but just be aware that a granny flat is effectively a new house. It must be built as a new house.

    As far as university accommodation goes, this is an excellent idea. Check this design out for students:

    The Student design here is getting the owner around $800 per week. It's near a university in Sydney.


    Brazen | Granny Flat Approvals Sydney
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    Granny Flat Approvals Guru

    Profile photo of timothybrownsuchatertimothybrownsuchater
    Join Date: 2013
    Post Count: 5

    A granny flat is a better and more profitable idea. However you need to check for council approval. If you’ve been given the okay signal then consider the location of the granny flat. You need to get a separate entrance and exit for it. You obviously would want it separate from your main house right.

    Profile photo of JhaiMitchellJhaiMitchell
    Join Date: 2012
    Post Count: 30

    I am currently getting $290 per week for my granny flat you might as well not call it a granny flat it is pretty much a self-contained unit. This is more attractive the renting a unit because I've sectioned off the backyard to give the tenants their own privacy. 

    Also there is no stairs and the property is only been shared with one house and gives the tenants complete privacy. We live in the front house but were looking renovating that and renting that out as well that will go for $380 per week there is so much you can do when you think creatively.

    I suggest Kimberly you think about your desired outcome and that you screen your tenants with the utmost diligence.

    You just don't want anyone living in your backyard.

    Also check out one of my articles about what can help you attract a tenant and where you should spend your money.

    Profile photo of maree_bradrossmaree_bradross
    Join Date: 2007
    Post Count: 401

    I'm thinking about buying an airstream caravan to put at the back of one of our properties that we plan on holiday renting in the future, that can be used for extra accommodation (under the one booking) & maybe used as an extra room in the interim for our current permanent tenant. Only in the thinking stage at the moment :)

    Profile photo of KimberlyKimberly
    Join Date: 2010
    Post Count: 44

    Thanks everyone for you input! I have been reading all of them as they came in despite not responding.

    I think all the suggestions are great and I still think its a great idea.

    However, if you haven't convinced your partner that it's a good idea, it's a no go from there! =)

    I'm interested to continue to hear of how ppl managed to pull this off though. Thanks.

    Profile photo of SeanWilsonSeanWilson
    Join Date: 2013
    Post Count: 26

    Hi Kimberley,

    What area are you located in? If you are using a private property that you own, and are in the SEQ region we might be able to help you out.

    Some pointers to start:

    Brisbane bans this type of thing, and run operations catching people out.

    For all intents and purposes, Ipsqich bans the same thing.

    Heres the interesting thing: Logan City Council allow granny flats up to the size of the existing house, and even rent it out to unrelated persons, all council approved.

    So if you are in the Logan City Council area, I would love to help you out. If not, thats fine, you may want to look at buying a property either in NSW (granny flats up to 60m2 can be rented out to unrelated people state-wide) or Logan City Council areas.

    Here is a map to the LCC suburbs for your information.

    Also, some information here is not entirely true, such as Energy Efficiency. You dont HAVE to insulate walls, you dont have to insulate floor. If you have a sloping ceiling, you can have a height in some areas less than 2.4m. You need to talk to either a certifier or a builder. 

    We are builder and you can look us up: BSA licence number 1017931

    Check out these links for some information:!granny-flats/c1dta!annexed-units-explained/c1h95


    Profile photo of SeanWilsonSeanWilson
    Join Date: 2013
    Post Count: 26
    Profile photo of Colin RiceColin Rice
    Join Date: 2011
    Post Count: 338
    Brazen wrote:
    IAs far as university accommodation goes, this is an excellent idea. Check this design out for students:

    The Student design here is getting the owner around $800 per week. It's near a university in Sydney.


    Hi Brazen,

    That looked fantastic .What is the total cost to get that "on the ground"?

    Colin Rice | CDR Finance
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    Perth Based Mortgage Broker - Investment Property Finance Specialist | E: [email protected]

    Profile photo of ticker07ticker07
    Join Date: 2016
    Post Count: 2

    Just new to the forum and wishing to have some advise….
    We own a home and have a self contained flat
    We were wanting to rent it out and do air bnb short term nightly accommodation
    Wondering if anyone can help us work through the council minefield
    We gather it’s as short term accommodation and not a bed an breadkfast as we don’t supply breakfast
    I live in the home with my husband so it’s “shared” by another couple which would be 4 people all up
    I’m really confused as to how to abide by the rules and earn an income.
    I understand the income is declarable to the ATO at the end of the year
    Also not sure of what insurances are required for short term accommodation and if there are any providers that are good ?
    Any help would really be appreciated



    Profile photo of BennyBenny
    Join Date: 2002
    Post Count: 1,416

    Hi Ticker,
    From what I recall, the States (or is it Councils?) each have a differing view of Granny flats. To be able to help, we would need to know which State (or Council?) your granny flat is in.

    I have seen that “granny flat” information mentioned in some posts recently, but couldn’t find them just now – if others can, please add the links,


    Profile photo of Fixed Price Granny FlatsFixed Price Granny Flats
    Join Date: 2017
    Post Count: 1

    Thank you for sharing all this info! Great read.


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