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With Interest Rates Going Up – Is a Granny Flat Your Best Option?

lauren@aplusgrannyflats.com.au (Granny Flat Builder) — Tue, 15 Sep 2026 12:14:49 GMT

The Reserve Bank of Australia has finally chosen to tighten monetary policy. Variable interest rates, which had been very low for some time, are expected to rise again affecting many homeowners’ mortgages across the country. Banks immediately boosted their rates after the first rise and more rate rises are expected throughout the year.

An upward trend for interest rates may mean homeowners and aspiring homeowners look for alternatives to the ‘knock down rebuild’ project or upsizing with a new purchase. So, let’s consider – the great Australian Granny Flat.

A granny flat could help you insulate your lifestyle against cost of living and interest rate rises. Building a granny flat on an existing property allows you to make the most of every square foot of your home – and you’d be surprised how spacious and accommodating they can be. Most importantly, a granny flat can offer your build project financial advantages including making the best utilisation of existing space.

Why are granny flats such a good investment right now?

Building granny flats on houses in Australia allows for secondary and independent living space. By renting out a granny apartment, you can more quickly pay off your mortgage and gain return on investment. Yesterday's granny flat designs have transformed into today's trendy home spaces, providing all of the comforts and facilities of a complete home.

Why Keeping Your Adult Kids Close in a Granny Flat Makes Sense

lauren@aplusgrannyflats.com.au (Granny Flat Builder) — Tue, 15 Sep 2026 12:13:13 GMT

The feelings of shame and laziness that were once associated with adults living at home have essentially disappeared for Millennials and Gen Z, who currently face an unstable job market, record-breaking property prices, flatlining wages, and sizeable HECS debts.

In fact, there is a growing trend in the number of young adults—sometimes referred to as ‘boomerang kids’—who return to live on their family’s property. Recent census data shows that around 43% of 20-24-year-olds were still residing in the family home as of 2021, up from 41.4% in 2016. The trend persists among older age groups as well, with 17% of 25-29-year-olds and 7% of 30-35-year-olds still living with their parents(Australian Institute of Family Studies)(Australian Bureau of Statistics). This increase is driven by a range of factors, including the high cost of housing and economic uncertainty.

For many parents who have enjoyed the freedom of an empty nest, the idea of their boisterous 20-something children returning to live under the same roof is not always appealing. No one looks forward to doubled laundry piles or constant noise. Is there a way to welcome your children back home without sacrificing your privacy? A granny flat may be the perfect solution.

Why a Granny Flat for Older Kids is a Win-Win

There are several advantages to keeping your adult children close in a granny flat:

Financial Support without Strain
The ‘Bank of Mum and Dad’ may not offer interest rates, but the pressure on parents to financially support their children is growing. Building a granny flat gives your child the chance to live rent-free and save more money for a home deposit, rather than needing loans for day-to-day living expenses.
Privacy for Everyone
A granny flat offers the perfect balance—your child is close by, but not inside your main home. There’s no worry about unexpected house guests, late-night noise, or mess in your living spaces. Granny flats provide independent kitchens, bathrooms, and even separate laundries.
Improved Family Relationships
When your adult children have their own living space, it helps maintain the parent-child relationship without creating tension. You won’t feel like a full-time cleaner, cook, or laundromat. APlus’s granny flat designs offer spacious, independent living, adaptable to small or challenging blocks like narrow, sloping land.
Future Versatility
Once your child moves out, the granny flat becomes a versatile asset. It can be used to house elderly relatives, avoiding the high costs of aged care, or customized to support accessibility needs with options like wheelchair ramps. Alternatively, it can serve as a home office, guest accommodation, or an income stream through renting.
Increase Property Value
Building a granny flat is a smart investment. According to CoreLogic, adding a granny flat can increase the value of a property by up to 30%. As well as offering potential rental income, this investment can also allow you to retire earlier, thanks to the passive income generated.

This approach to multi-generational living not only benefits your adult children but also offers long-term advantages for your family. Whether it’s about keeping your kids close while they gain independence or preparing for the future, a granny flat offers flexibility, privacy, and financial benefits.

Why Choose APlus Granny Flats?

Choosing the right builder is key when it comes to creating the ideal granny flat for your family. APlus Granny Flats are known for their expertise in custom designs, tailored to fit seamlessly with your existing home and property. Whether you have a narrow block, sloping land, or specific requirements like a wheelchair-accessible home, APlus’s experienced team will guide you through every step—from design to council approvals and construction. With a focus on quality, functionality, and future-proofing your investment, APlus ensures your granny flat is built to the highest standards while giving you the flexibility to adapt the space as your family’s needs change.

Book your free Granny Flat site assessment

Why Building a Granny Flat for Your Parents May Be More Viable Than Ever

lauren@aplusgrannyflats.com.au (Granny Flat Builder) — Tue, 15 Sep 2026 12:11:46 GMT

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

Why are Granny Flats Becoming So Popular?

lauren@aplusgrannyflats.com.au (Granny Flat Builder) — Tue, 15 Sep 2026 12:10:22 GMT

Granny Flats have become an increasingly popular choice for homeowners and investment seekers, offering the much needed opportunity to invest in property while interest rates keep making the news. While the housing market might be taking a hit, we’ve only seen further growth in the interest and purchase of Granny Flats, and we can see why. Whether opting into a Granny Flat for family, financial or freedom reasons (or all three), there’s plenty of appeal to taking advantage of this cost effect and lucrative way to add value to your property. Here are the top reasons we see.

What the 2026 Budget Changes Mean for Granny Flats

rami@sydneywebexperts.com.au (admin) — Tue, 15 Sep 2026 12:09:47 GMT

Why the 2026 Budget Changes Are Actually Great News for NSW Granny Flat Builders

Last night's Federal Budget dropped a bombshell on Australian property investors. Changes to negative gearing and capital gains tax will reshape the investment landscape from 1 July 2027. The headlines are full of warnings, property investor forums are buzzing, and plenty of landlords are feeling uncertain.

What is an Attached Granny Flat?

lauren@aplusgrannyflats.com.au (Granny Flat Builder) — Tue, 15 Sep 2026 12:05:20 GMT

Have you always wanted to enjoy the financial benefits and lifestyle advantages of a Granny Flat on your property, but have limited backyard space? Attached Granny Flats (sometimes referred to as a dual living design) are a great option for accommodating older children, extended family, guests, renters, live in nannies and, of course, grandparents!

In this article, we unpack a few key facts about what exactly qualifies as an attached Granny Flat, and why they are such an attractive option.

What is the definition of an Attached Granny Flat?

According to the Affordable Rental Housing State Environmental Planning Policy (NSW) 2009, a Granny Flat or secondary dwelling is referred to as a self-contained dwelling that is erected on a property in conjunction with another dwelling (the principal dwelling), and can be either attached to or detached from the principal dwelling.

A granny flat is considered ‘attached’ once it is within 900mm from the principal dwelling.

What Boundary Setbacks Are Required for a Granny Flat in NSW?

lauren@aplusgrannyflats.com.au (Granny Flat Builder) — Tue, 15 Sep 2026 12:04:14 GMT

In NSW the planning legislation is clear - Granny Flats are a welcome addition to housing stock across the state. There is specific legislation, updated in November 2021 (the Housing SEPP) that sets out the guidelines for being able to build a Granny Flat with NO council approval, including what set backs are required for your lot size. Here we cover in detail how close you can build a Granny Flat to your boundary and to other structures on your site.

Complying development certification (CDC) is a faster approval process which ensures planning and environmental requirements are met through a set of prescribed approval conditions. An application for a CDC can be lodged with either a local council or an accredited certifier acting as the Certifying Authority. At Aplus we will work through how to build your Granny Flat with NO council approval to get a faster, smoother Granny Flat build. Here is some of what we will look at.

What are the different types of granny flats?

lauren@aplusgrannyflats.com.au (Granny Flat Builder) — Tue, 15 Sep 2026 12:02:39 GMT

Even the name ‘granny flats’ can bring on a bit of a vision: a little old flat, with a grandmother living out the back. But over the decades, granny flats have evolved, modernised and are an incredible living and financial opportunity for property owners. They’re helping with the housing crisis, keeping families together (ageing parents living close by, moving-out age children having a safe and viable option) and improving the value of your property. At APlus, we build detached granny flats, as they are the most valuable and functional type of granny flats. But, it’s not the only type of granny flat, and we sometimes find people are a little confused about what one is, and between the kinds available.

Understanding Land Zoning: A Step-by-Step Guide to Development Potential

lauren@aplusgrannyflats.com.au (Granny Flat Builder) — Tue, 15 Sep 2026 12:01:48 GMT

Land zoning is set out by the State and Local Government to regulate the density and types of development within certain areas. Land zoning can be residential, industrial, commercial, environmental and for infrastructure, like main road and rail. These zones are carefully planned by state and local governments so we don’t have a residential building located within a loud industrial area or any other unpleasant mixes of use that should be kept separate. This article covers a step-by-step process on how find this information to determine what can be built within the zone of your property.

Do you know how to check the land zoning of a property and find out what type of development can be built out on it?

Types of Loans to Finance a Granny Flat

lauren@aplusgrannyflats.com.au (Granny Flat Builder) — Tue, 15 Sep 2026 12:00:23 GMT

Wondering how you could possibly finance a Granny Flat? Granny Flats, whether for expanding living space or generating rental income, often require specific financing solutions to suit individual circumstances. Its a common scenario that Australian's are lending against every day. This article delves into various lending scenarios and loan options designed to finance a Granny Flat.