Killarney Vale Granny Flat Build – From Old Garage to High-Yield Rental

When a property investor purchased a home in Killarney Vale with the goal of adding a granny flat, our team at Coastwide Granny Flats was engaged to manage the entire design, approval and construction process. While the buyers agent oversaw the overall project, we focused on delivering the granny flat from concept through to completion.

Site Preparation

The existing home was already in good condition, with only minor internal works such as fresh paint required. Outside, however, significant preparation was needed to make way for the granny flat. We removed an old garage and a very established garden, cut back the covered entertaining area so part of it could remain, installed a new dividing fence, and reconfigured the driveway and backyard. These works were completed within 4 weeks, allowing the main house to be tenanted just 6 weeks after settlement.

Approvals and Construction

Once the site was prepared, we worked through the full approval process to ensure everything was in place before construction began. With approvals finalised, our team commenced the granny flat build. The construction phase was completed in just 12 weeks, with a total granny flat project cost of $215,000. The direct build cost made up approximately $172,000, with the remainder covering approvals, site works and compliance requirements.

Results

The newly completed granny flat in Killarney Vale was modern, functional and designed to maximise the use of the block while still providing privacy between the two dwellings. The investment result was outstanding, the granny flat was successfully leased at $550 per week, providing the investor with strong immediate returns and excellent long-term value. Based on the total project cost of $215,000, the rental income equates to a gross yield of 13.3%. When measured against the direct build cost of $172,000, the gross yield increases to 16.6%.