Budgewoi Granny Flat Build – Smart Design on a Sloping Block with Strong Rental Returns

Having purchased this Budgewoi property a few years ago purely as an investment, the owner saw an opportunity to strengthen the return and ease mortgage pressures from rising interest rates by adding a granny flat. The timing was ideal, with the existing tenant moving out and freeing up the chance to both renovate the main home and construct the new granny flat at the same time.

Overcoming Site Challenges

This block presented some unique challenges. Being a sloped site, our team managed the levels by cutting and filling the yard to create a suitable base for a concrete slab. There was no vehicle access to the rear, so all building materials had to be carried down the side of the existing house. A new driveway was formed at the front of the property to create separate parking for the granny flat, with pedestrian access continuing down the side to the entrance. Additionally, as the granny flat sits below road level with no stormwater connection, we designed and installed an absorption pit to manage rainwater runoff effectively.

Smart, Simple Design

The granny flat was tailored to suit the shape of the block, maximising the available land while working within council setbacks. A large gable end was incorporated into the design to enhance street appeal and provide the home with a clean, modern look. The layout remains simple and functional, reflecting the project’s focus on affordability and practicality for long-term rental return.

Results

The build cost for the granny flat was approximately $170,000, with the complete project totalling around $205,000. This included extras such as air conditioning, the front driveway, a large patio, concrete paths, landscaping, fencing and separate meters. The new granny flat has secured a long-term tenant at $460 per week, providing a gross yield of around 14.07% on the build cost and 11.67% on the total project cost. This has significantly boosted both the property’s value and income potential.