Everything Real Estate

By David Rawlingson and Janette Brennan

This week we are going to discuss the new changes that came into effect in August regarding renting out ancillary accommodation.

The much anticipated changes will allow backyard dwellings typically used as a teenagers retreat or for other family members – colloquially referred to as a “granny flat” – to be opened to the rental market, also, granny flats will be able to be built in all residential zones as long as there is no more than one main home and one granny flat on the same block of land.

Although, the combined square meters of the granny flat and main building must not exceed the planning commission approval for your individual block. The other additional change yet to be ratified will allow granny flats to be built up to 10% larger.

Isn't building a granny flat expensive?

Well yes and no. The cost of building a granny flat can vary depending on size and quality. For something of a decent size and quality you won't get much change out of $100,000, which is a lot of money but, with a possible rental income of up to $250pw or more depending on the finish, this should more than pay for itself over time.

There are other cheaper options available with Bunnings now offering a decent, quality 2 bedroom home for $49,990 plus building costs. We may start seeing granny flats popping up everywhere!

Be warned that if you do decide to go ahead with this plan, it may affect the property’s capital gains status. As with everything, seek professional advice about your specific circumstances. 

Over and Out.


David and Janette are "Team Brennan" at Ray White Geraldton. Learn more here.


Jason Smith

Founder of Everything Geraldton, Everything Mandurah, & Everything Perth. Law Student. Father, Husband, Bitcoin, Cigars.