Building a Granny Flat? What you need to know

You may have been pondering the idea of adding a granny flat to your backyard. Whether for investment or family to live in, within this guide we uncover the process. I haven’t built a granny flat myself but have worked closely guiding clients in residential construction through the building process and have built a home, so I’m familiar with the process.

The first thing to check is your property big enough to accommodate a granny flat. In NSW granny flats fall under the SEPP which is known as the State Environmental Planning Policy for affordable rental housing. Link below:

Policy https://legislation.nsw.gov.au/view/html/inforce/2021-02-01/epi-2009-0364

Another helpful starting point is the NSW Planning Portal.

https://www.planningportal.nsw.gov.au/

Helpful documents you may already hold are a survey and sewer diagram that maybe found in your property purchase documents Contract of Sale. There are some other checks such as ordering a Section 10.7 certificate. These documents will provide information about whether it is a complying development known as CDC, setbacks, flood, bushfire, soil, zoning etc.

But an easier way to start may be to contact 2-3 granny flat building companies. You can then review their designs; materials used and finishes and request a quote with what is included in the build cost. Don’t forget to ask what other costs are not included in the contract and get it all in writing. I suggest you prepare a list of questions to ask such as if they do a site inspection prior to quoting, do they manage the entire build process in-house, can they provide a draft of the building contract etc. Before you sign anything ensure you organise your finance. Several considerations are how much can you borrow or if you can use your existing equity, what is the progress payment schedule and if it is amenable to your lender, how much would repayments be and a copy of the draft building contract for review.

If you decide to proceed, the builder will draw up your plans for your approval and prepare a building contract for you to sign. There will be some items in the contract such as site costs that will not be fixed and an estimate only.

It’s likely your granny flat company will assign a dedicated project co-ordinator to guide you through the pre-approval building process. They will order any necessary documents e.g. Basix, 10.7 certificate from council, submit documents for approval and keep you updated through the progress.

Submitting as CDC would be preferenced as it can expedite the process rather than getting a Development Application through council which can be a tedious process.

However, DA may be needed if it the build is not eligible for CDC.Once your build receives approval you should have a site supervisor manage the construction process through to handover.

You may or may not face challenges for your build these could include but not limited to accessibility issues which may mean getting a neighbour’s access, sloping site which involves increased site costs, stormwater costs, sewer access.

Lastly, the owner not the builder appoints the certifier. You may want to utilise your own certifier, or you can use the builder’s certifier that approves your construction certificate, the choice is yours.

Property Viewers Group hope you found this article insightful. If you decide to complete the granny flat as an owner builder that is an entirely different journey that needs to be explored.

This article is for general information only and does not constitute financial, legal, or building advice. You should seek independent professional advice relevant to your specific circumstances before making any decisions.